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Monday, May 26, 2014

SABMiller brews strategy to crack Kenya market

Corporate News
Crown Beverage Kenya managing director, Gareth Jones. Photo/DIANA NGILA
Crown Beverage Kenya managing director, Gareth Jones. Photo/DIANA NGILA 
By Mugambi Mutegi

UK-based brewer SABMiller’s experience of doing business in Kenya has been anything but smooth. It made a decision in the late 1990s to enter East Africa’s largest economy through a business partnership with local brewer East African Breweries Limited (EABL)
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But the deal soon fell apart, forcing SABMiller to shut down its Thika plant and exit Kenya in 2002.
Eight years later, the brewer took control of family-owned Crown Beverages Limited — the bottlers of Keringet drinking water— making a quiet re-entry into the Kenyan market.
SABMiller has since launched several beer brands in Kenya, unsettling a market that is dominated by its partner-turned-rival, EABL.
The range of beers that SABMiller has introduced in Kenya include Castle Lager, Castle Milk Stout, Redds, Castle Lite and US brand Miller Genuine Draft.
Business Daily’s Mugambi Mutegi talked to Crown Beverage Kenya managing director, Gareth Jones on SABMiller’s return to a market it only left a few years ago and how it plans to crack it this time around. 
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Not much is known about SABMiller’s operations in Kenya. How big is your operations here and how do you fit into it?
I am the general manager, for Kenya operations. This is a new position that was created in the second half of last year with me as the first occupant. Previously, we had a managing director in Kenya.
He was promoted to become the managing director of SABMiller’s challenger markets. These are countries like South Sudan, Kenya and Ethiopia where we have a relatively small market share and are seeking to build scale. That restructuring required somebody to step in and look after the Kenyan market, hence my appointment.
Our entire Kenyan team is based in Ruiru where we recently rented an office and warehouse.
How long have you worked for SABMiller?
I have been working for SABMiller for 15 years and my last assignment was in Durban where I was a district manager, a distribution and sales role.
In terms of scale, the market I was handling in South Africa is more than seven times the size of SABMiller’s business in Kenya.
Now that you have touched on comparisons, how different is the Kenyan business environment from that market?

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