Money Markets
Brewer sees new demand in growing EA population
Inspection of EABL’s brands at the Ruaraka plant, Nairobi. The brewer said that by increasing its regional footprint from seven to 13 countries, it will grow its market base almost three times from 54 million to 140 million. Photo/ANTHONY KAMAU
Posted Thursday, September 9 2010 at 00:00
If there is no trickle down effects, the huge legal drinking age population may not be the cash cow for EABL, said the Zimele analysts.
Mr Nderi says the differences in regulation and competition levels mean it is difficult to give an accurate picture of the prospects in the regional market.
Taxation is the biggest risk for EABL says Mr Mugo but says that the harmonisation of taxes may offer a reprieve for the brewer.
EABL has faced hurdles in its regional pursuits after the Ethiopian government cancelled a tender to dispose of three breweries.
An Alcoholic Drinks Control Bill recently enacted in Kenya also has the potential to constrict distribution channels.
SABMiller is EABL’s biggest rival in the region with other smaller player such as Kenya’s Keroche Breweries and Rwanda’s Bralirwa seeking to get a share of East Africa market.
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