Enterprise

City brewer takes fight to giants with flavoured beers

KenyanOriginals1

A worker inspects an unbranded beer can at the Kenyan Originals factory in Baba Dogo, Nairobi. PHOTO | POOL

Over the past few years, Kenya’s craft beer industry had grown immensely.

From a few nondescript offerings, today the consumer is spoilt for choice with the latest consumption figures painting the picture of a fast maturing alcohol sub-sector as firms kick their innovation gear into overdrive to come up with the best products.

One of those brands is Kenyan Originals that today has an array of alcoholic drinks. When it was first introduced in the Kenyan market in 2018 by Savannah Brands, it starting off with sales of two cases per outlet per month, which has since grown to 32 cases per outlet per month.

Behind the sales growth is the millennial consumers who, unlike the older generations, are ready and willing to try out new products away from the traditional lagers which continue to dominate the local market.

The craft products mainly consist of fruit-based ciders, tonics. It also makes and sells ice teas, but it is the alcoholic drinks that are much sought after.

“Our beverages are the traditional fermented drinks made by our grandmothers, but with a modern twist,” Ms Alexandra Chappatte, Kenyan Originals founder told the Enterprise during an interview at the firm’s manufacturing plant in Nairobi.

Kenyans for Kenyans

Before setting up Kenyan Originals, Ms Chappatte who was head of marketing for alcoholic beverages giant Pernod Ricard in West Africa, did her homework and established that there was a demand for an exclusive craft drink made by Kenyans for Kenyans.

“Three trends are influencing today’s alcohol consumer choices; purpose, sustainability and health. It’s on this foundation that Kenyan Originals was built,” she said.

Kenyan millennials care about where and what they are spending money on and the impact of their choices on people and the planet, she noted.

Sustainability is therefore is at the core of Kenyan Originals’ operations. To ensure environmental sustainability, Kenyan Originals’ products are made from locally-sourced tea and fruits such as pineapples, lime and passion.

Other ingredients like ginger, hibiscus, rose flowers and mint are also sourced from small-holder farmers in diverse locations as Garissa, Makueni, Kitui and central Kenya. Only quinine is sourced from the Democratic Republic of Congo.

The factory located in Baba Dogo processes up to three tonnes of fruits per month with a production capacity of 50,000 bottles per month.

Ms Chappatte said their products are 100 per cent local, vegetarian and gluten-free, giving them a competitive edge, especially among the sustainability conscious consumers.

Kenyan Originals’ push for sustainability has in turn ensured farmers economic sustainability through the stable demand for their fruits.

In terms of employment, Kenyan Originals’ 80 per cent of its 31 staff are under 30 years old. Furthermore, 72 per cent are female, with a direct production team comprising of young women meaning that the production of the craft drinks is largely done by women.

It is such drive to promote women in the largely male-dominated sector that saw Kenyan Originals produce the first female cider maker in Kenya, Faith Mbugua. A food scientist by training, she underwent a rigorous six-week apprenticeship at the US-based Portland Cider Company, where she learnt the intricate art and has been transferring the knowledge locally.

“This is especially important for us because the youth bear the brunt of financial instability more than previous generations,” Ms Marion Kerubo, head of digital marketing at the firm said in reference to their women empowerment drive.

In the four years they have been in business, Kenyan Originals has been recognised as a key innovation driver, winning awards such as the WIBA for the best botanical drink and Product of the Year in the 2019 Africa Excellence Awards.

It products are found in supermarkets, wines and spirits outlets, bars and restaurants. They can also be bought through social media and other digital outlets.

Social media has played a big role in enhancing awareness of the brand. During this Covid-19 pandemic, Kenyan Originals has witnessed double digit growth in sales.

“We shifted to an off premise strategy and focused on take-home plans. Now, supermarkets and wines and spirits, restaurants and bars and online sales account for 75 per cent, 20 per cent and five per cent of our sales respectively,” said Ms Chappatte.

As of March 2021, Kenyan Originals had increased its retail outlets to 690 from 230 in January 2020, representing a 960 per cent growth in the off-trade market, Ms Kerubo explained.

Challenges

There are nonetheless, challenges that continue to hamper the potential of the industry, the biggest being the numerous licences required from different government agencies due to lack of harmonisation. Sourcing of brown bottles is also problematic. Currently, there are only two glass bottle manufacturing companies, with one controlling 90 per cent of the alcohol beverages market, making it difficult for it to service new clients.

Being a capital-intensive venture, raising capital has also been a challenge.

“We needed Sh32.1 million ($300,000) to get things off the ground, including the production setup and hiring the initial team,” said Ms Chappatte. The company at last managed to secure the funds through investors after a year of funding the business out-of-pocket.

In the next five years, it hopes to be employing 180 direct staff, with half of them being under 25 years old and 70 per cent being women. The company also projects that it will be generating Sh2.6 billion ($25 million) in annual revenue.