East African Breweries Limited (EABL) spirit selling unit recorded a Sh5.2 billion after tax profit for the year ended June 2025 on the back of Johnnie Walker and Kenya Cane sales.
United Distillers and Vintners (UDV) Limited, fully managed by EABL with a 46.3 percent ownership, grew net profit from Sh5.1 billion a year earlier and Sh4.53 billion in 2023 as spirit sales surged.
The spirits sales are being driven by demand in the top and low range categories as the middle class hit be inflation and stagnant pay knock off non-essential items like alcohol from their budgets.
This is backed by jump in sales of Kenya Cane, which targets the bottom end of the market, and the Johnnie Walker brands, which excluding the Red Label line that eyes the upper end of the market.
“Performance in rum was driven by local flavour innovation on Kenya Cane. The transition to an independent route-to-market for premium-plus-spirits supported double-digit growth in Johnnie Walker,” said Diageo PLC—which owns 65 percent of EABL, in its annual report.
The company, majority owned by EABL’s parent company London based Diageo PLC, recorded net sales of Sh32.6 billion up from Sh30.7 billion in 2024 with Diageo citing Kenya Cane and Johnnie Walker for improved sales of the group.
UDV sales accounted for a quarter of EABL’s consolidated revenues of Sh128.8 billion-- which includes sales from other subsidiaries such as Serengeti Breweries, Uganda Breweries Limited, EABL Tanzania and EABL Rwanda.
Kenya's spirits market has fared better in recent years than that of South Africa, the continent's most developed economy, and those in Nigeria and Angola, analysts say.
EABL has betted that strong spirits growth will lift earnings.
Its spirits business faces stiff competition importers of brands like Jack Daniels and Jameson whiskey and local firms like KWAL, which sells County and Viceroy, and London Distillers Limited.
Kenya was earlier cited by Diageo as its fastest-growing market for sales of Johnnie Walker whisky, reckoning that is not only wealthier Kenyans splashing out on premium labels.
EABL says its spirit business recorded mixed results in the year to June with a six percent drop in mainstream spirits sales alongside a 10 percent increase in premium brands.
Mainstream spirits include drinks like Chrome Vodka and Gilbeys.
EABL recorded a net profit of Sh12.1 billion for the full year ended June 2025 being a 12.2 percent increase from the previous year when it posted Sh10.8 billion.
The brewer said it does not disclose financial performance of individual business lines under the group, but its parent firm, Diegeo, mentioned Johnnie Walker whisky grew by double digits.
The EABL had earlier forecasts that spirits will contribute half of annual revenue in coming years.
Bar owners in Nairobi say that younger drinkers are influenced to shift from beer to spirits by social media and television. Many fuel stations now sell small bottles of spirits alongside cans of beer.
The strong growth in spirits from vodka to gin and rum is partly driven by growing middle class incomes in Kenya.
“As a policy, we do not disclose business line-specific financial details beyond what is shared in our published financial results,” EABL said in a statement.
“What we can confirm is that spirits remain a significant and growing part of our portfolio, and we continue to invest in this category given its importance to our consumers and overall business strategy.”
Diageo announced a plan to make a big asset sale, turning the spotlight on EABL in a period when the multinational has exited three African markets in quick succession.
The UK firm in May unveiled a $500 million (Sh64.65 billion) cost-cutting programme and assets disposal plan as part of its “asset light model” aimed at reducing volatility in Africa and driving better returns.
This prompted both international and local analysts to single out EABL and Diageo’s Chinese baijiu business as top candidates for a sale.
The Nairobi bourse-listed EABL, where Diageo has a 65 percent stake worth Sh113.7 billion, stood out because it was the British brewer’s last major asset remaining in Africa.
The company has offloaded several African brewing operations as part of its move to an “asset-light” model in markets with greater currency volatility.
