Corporate News
By MUGAMBI MUTEGI, pmutegi@ke.nationmedia.com
In Summary
- EABL is piloting the new 330ml Tusker and Pilsner 300ml in several down-market bars across the country ahead of an official launch mid-November.
Beer maker East African Breweries Limited (EABL) will launch 300ml and 330ml bottles for its Tusker and Pilsner beer brands targeting lower-income consumers.
The regional brewer is piloting the new 330ml Tusker and
Pilsner 300ml in several down-market bars across the country ahead of an
official launch mid-November.
The EABL is selling the new beers christened
“passport” at Sh90 per bottle, but says an ongoing market research will
inform the final recommended retail price (RRP) of the drinks.
“We are currently engaged in a controlled market
test across the country,” said EABL’s Group Corporate Relations Director
Julie Adell-Owino in an interview.
She said: “We plan to distribute these smaller
formats in our lower mainstream channels where price has been proven to
be the biggest barrier to accessibility of our brands. The full launch
will be restricted to the lower market channels.”
The brewer, which in August reported a 40 per cent
increase in full-year profit to Sh9.6 billion, has until now packaged
its flagship Tusker and Pilsner beers in 500ml glass bottles.
However, canned versions of these brands exist in
500ml and 330ml for Tusker and 500ml for Pilsner, a choice which EABL is
now extending to its customers who prefer the beer in glass bottles.
Guinness is the only mainstream beer that has been
retailing in two bottled versions and the inclusion of Pilsner and
Tusker now leaves White Cap Lager as the only top brand exclusively
packaged in a 500ml glass bottle.
“The findings of this market test will inform the
final RRP that will be offered to consumers. Suffice to say, the
proposed price should provide the expected accessibility to the intended
consumer,” said Ms Adell-Owino.
In the year to March, EABL’s mainstream beers such
as Tusker and Pilsner and emerging brands Balozi, Allsopps and Senator
each reported a two per cent dip in revenue.
“Our mainstream beers were challenged hence the
softening in revenues this year. In the current financial year, Tusker
will remain our main focus,” said the Kenya Breweries Limited managing
director Jane Karuku during the release of EABL’s full-year results.
The brewer attributed the depressed performance to
the 50 per cent excise tax slapped on low-end Senator Keg and depressed
sales of the company’s mainstream beers.
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