Kwal starts local production of cider brands

KWAL managing director Lina Githuka. FILE PHOTO | NMG

What you need to know:

  • Kwal has set up the new cider production line at a cost of Sh50 million.
  • It has a production capacity of 400,000 litres per month.
  • The brewer said it also plans to produce other brands like Hunters Dry and Savannah.

The Kenya Wine Agencies Ltd (Kwal) has started brewing its Hunters brand of cider at its Industrial Area brewery in Nairobi as it seeks to tap into the fast-growing market of premium alcoholic beverages.

The brewer, which has until now been importing the Cider from its parent firm South African giant wines and spirit maker, Distell Ltd, set up the new cider production line at a cost of Sh50 million. It has a production capacity of 400,000 litres per month.

KWAL managing director Lina Githuka said local production would help the firm grow its market share by cutting costs, adding that it would now take advantage of its distributor network and third-party sellers to increase sales of the drink.

“The cider production line will initially focus on Hunters Gold, which is currently Africa’s largest-selling cider,” said Ms Githuka.

“Our focus is to occupy at least 50 percent of the cider and mixed drinks segment by the end of the year.”

KWAL said it also plans to produce other brands like Hunters Dry and Savannah.

The firm was established 50 years ago as a State corporation.

In 2016, investment firm Centum sold its shares to Distell, making Distell the largest shareholder with 52 percent ownership of KWAL.

The launch of the new line by KWAL comes at a time when the market is witnessing increasingly diverse and sophisticated products partly brought by the entry of new players including distributors of global liquor manufacturers.

In 2016, Kenya Breweries Limited launched Tusker Premium Cider, a new beer made from crushed apples targeting the middle-class youth.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.