Danish brewer launches medium strength Faxe beer in Kenya

What you need to know:

The new 5.5 per cent alcohol content beer will be available in 330-mililitre bottles and 500-millilitre cans.
It adds to the Faxe 10 per cent and Faxe Stout 7.7 per cent beers already in the Kenyan market.
Kenya in one of the three African countries alongside Burkina Faso and Ghana that will see the introduction of the new product.

Danish beverage firm Royal Unibrew has expanded its Kenya portfolio with introduction of a medium strength beer Faxe Gold, upping the competition for its rivals.

The new 5.5 per cent alcohol content beer will be available in 330-mililitre bottles and 500-millilitre cans.

It adds to the Faxe 10 per cent and Faxe Stout 7.7 per cent beers already in the Kenyan market.

“The product will complement the already existing beer. Faxe Gold is an easy everyday lager beer,” said Nicolas Baroutis, commercial director Africa for Royal Unibrew.

The beer, imported and distributed by Patiala Distillers, will take on other premium brands in the market with an alcohol volume of between four per cent and five per cent as the Faxe brand has been mainly in the strong beer category.

Kenya in one of the three African countries alongside Burkina Faso and Ghana that will see the introduction of the new product.

“Kenya is a big market and the consumer knows and enjoys beer. It is one of our focus countries in Africa,” said Mr Baroutis. The Danish company is banking on the popularity and consumption in the category to grow its market share.

READ: Denmark’s second largest brewer enters distribution deal with Kenyan firm

In August 2017, Euromonitor projected that beer is expected to record a total volume compounded growth of four per cent.

Beer, according to the Kenya Revenue Authority, accounted for Sh24.8 billion excise revenue collected, topping the revenue from levies on commodities and services.

The premium segment of the Kenyan beer market has seen increased activity over the past six months with the entry of new brands and expansion of existing portfolios.

Namibian premium beer brand Windhoek made its return to the Kenyan market in April, barely a month after Heineken introduced a new draught beer.

German premium beer Warsteiner also made its market debut last month after signing an exclusive distributorship deal with Maxam.

Other competing premium brands in the market include Miller Genuine Draft brands by rival SAB Miller, the Sierra suite of beers by Ozbecco, Carlsberg, Tuborg and Heineken.

Royal Unibrew, Denmark’s second-largest beer maker with a global presence, sells and distributes beverages with a focus on branded beer, malt beverage, soft drinks, cider and long drinks.