Daily Nation Advertising Feature
Date: 31.10.2013
Page 2
Article size: 127 cm2
ColumnCM: 28.22
AVE: 68297.77
Kenya: Africa's third largest alcohol consumer
By MILLICENT MWOLOLO
mm wo lol o@ke. n ation m edia.com
According to a research released by Deutsch Bank
Market Research last year, Kenya is Africa's third
largest alcohol consumer after Nigeria and South
Africa. The research report indicates that Kenya is
one of the high growth potential markets for alco­
hol consumption due to the sustained expansion of
the continent's economies and a young population
seen as major booster to future demand. The re­
search, which is based on international beer maker
Diageo's sales on the continent, put Kenya's alco­
against 4.1 million and 3.4 million in Tanzania and
Uganda, respectively, the report says. Beer con­
sumption in Kenya has increased over a five­year
period to 11.9 litres per capita last year.
The analysts expert Kenya's beer market to show
the least growth during the 2011­2016 period and
projects beer PCC to increase to 14.2 litres. Kenya's
premium beer market has attracted interest, with
players such as SABMiller, and Heineken angling
for a slice of the pie.
Currently, branded beer accounts for over 60 per
hoi market share at 17 per cent of the continent's
total behind Nigeria with 36 per cent and South
The Kenya Revenue Authority estimates that ex­
cent of alcohol market though it faces stiff corn­
petition from cheap spirits and illicit / ea ditionat
cise duty on beer contributes to more than half of
the total excise duty collection. In the last 10 years,
ket is dynamic and very competitive wit i Keroche
Africa with 18 per cent.
brews. Going forward, the Kenyan brewing mar
the beer market in East Africa has recorded tre­
Breweries Ltd, SAB Miller, Ozzbeco (K) Ltd and
mendous growth. This is predicted to go even high­
er with the prospects of better economic growth,
higher population, changing urban trends and stiff
many other brewers coming on board t) compete
for a market share with the region's tieer giant,
EABL. But most importantly, the consun er is going
competition among brewers. Global brewers see
the region as a high potential frontier to grow their
ety of smarter choices and wider range of experi­
volumes and are lining up their brands.
to be the overall winner with a much wider vari
ences.
Kenya is the largest beer market in the region, with
4.9 million hectolitres of beer consumed last year
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya