KWV's brand ambassador Themba Nkosi (left) with Slater and Whittaker Managing Director Tilak Ruparel during the launch of Nobleman Reserve Brandy in Nairobi on Wednesday. Photo/Sammy Kimatu
South African winemaker KWV has taken the battle for market share control to alcohol brands in Kenya with launch of its new line of brandy, the first of its kind, in its expansion drive in the local market.
The Johannesburg Stock Exchange listed firm, known locally for its flagship KWV Classic Range and Pearly Bay range, has added Nobleman Reserve Brandy to its offerings in Kenyan market where it has been in existence for 12 years.
Company officials said they bypassed South Africa, the continent’s largest wines and spirits market, for the launch due to appeal of Kenyan market that has over the years attracted several other global alcohol brands.
“We have a bigger chance here. Kenya is the second largest brandy market in Africa and we want to leverage on that,” KWV general manager Africa Wilhelm Theunissen said on Wednesday during the launch in Nairobi.
“It is difficult to launch a new product in South Africa market today due to many brands. Chances of succeeding with a new brandy there is very minimal,” he added.
Africa’s largest economy has a large market for brandy, estimated at 46 million litres per year, but this has been dissolved by high number of players in the sector – about 20 different brandy lines – making it tough to penetrate, according to KWV.
Nobleman brandy 750 milliltre (ml) flagship bottle which has hit retail shelves sells at Sh980 with Slater and Whittaker (SW) as the local distributor.
Themba Nkosi, the brand ambassador said they would introduce lower stock keeping units (375ml and 250 ml) in the market in the second quarter of next year.
The new brandy, which is made from grapes fermented in a period of two and half years, according to Mr Theunissen, is distilled at KWV Cellar of Paarl, in the heart of the Cape wine land.
Entry of the new drink into Kenya introduces fresh competition in the market dominated by East African Breweries Limited’s Richot Brandy, Smirnoff Vodka, Baileys and Johnnie Walker.
Mr Nkosi said Kenya would serve as a gateway into east Africa’s neighbouring nations starting early next year with Uganda as their first target owing to its famed alcohol drinking culture.
The global firm’s expansion of its product line in the country sets the stage for intense rivalry among South African brands in Kenya’s wines and spirits sector.
These include Orange River Cellars (boxed reds and boxed white range of wines), KWV and Distell Group, the producer of Viceroy Brandy, Amarula and DrostdyHof Cask Wine.
State owned Kenya Wine Agencies Limited (Kwal) is the sole distributor of Distell products in Kenya, Uganda and Rwanda. Local brands by Kwal include Simba Cane, Kibao Vodka and Yatta Wine.
Popular foreign brands in the local market include Scottish Famous Grouse, Jameson Whiskey (Ireland) and Jack Daniel’s (US).
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
