EABL, Keroche lock horns in suit over beer bottles mix-up suit

Corporate News

East Africa Breweries Limited in Nairobi. File 

In Summary

• Justice Ochieng on Wednesday granted Keroche 14 days to respond to the allegations raised by EABL in the suit. Hearing is on May 5. EABL has filed the investigation report as part of its evidence in the suit.
• The evidence at hand points out that both parties use, misuse or even abuse the empty bottles from their worthy opponent,” the reports says.

An investigation report filed in court shows that Kenya’s top two beer makers EABL and Keroche have mixed up their bottles to an extent consumers are drinking products packed in bottles of the rival firms without knowing.

The report, filed in court by EABL, accuses bar owners of causing a mix-up of the two companies’ bottles which are similar in shape, size and colour. EABL has filed the report based on an investigation done by the Kirinyaga County government in a suit where it is seeking to stop Keroche from using its beer bottles.

The statement that barmen have mixed up bottles of both beer makers, however appears to indicate that the problem affects both companies.

“On September 30 we visited one Keroche depot in Kerugoya Town. We found 16 crates out of which four were found to bear the EABL embossment in issue. We also discovered that the depot people were receiving empty bottles from retailers indiscriminately-without considering whether the empty bottles belong to the breweries or the competitor,” the report states.

“On October 1 we visited an EABL depot in Kerugoya town. 65 bottles out of the 500 bottles belonged to Keroche Breweries. We also randomly selected two crates of beer. Only 16 out of the 50 EABL beverages were found to have the embossment in dispute.

Use of its bottles

The evidence at hand points out that both parties use, misuse or even abuse the empty bottles from their worthy opponent,” the reports says.

The investigation by Kirinyaga County was triggered by EABL’s complaint over the use of its bottles to package Keroche’s products.

EABL claims Keroche is using EABL branded bottles to package its Summit Lager and Vienna Ice Vodka drinks. Justice Fred Ochieng has issued a court order barring Keroche from using EABL branded bottles until the case comes up for hearing on May 5.

READ: Keroche hires new staff to push new plant output

Also: EABL tipped a good bet among African beer makers

Justice Ochieng on Wednesday granted Keroche 14 days to respond to the allegations raised by EABL in the suit. Hearing is on May 5. EABL has filed the investigation report as part of its evidence in the suit.

Kirinyaga County in the report added that it will not pursue the EABL complaint further as it may put it at the centre of “business rivalry battles” which it is not mandated to promote. The county government had in July last year banned the sale of Keroche’s Summit Lager and Vienna Ice Vodka over quality concerns.

The Ruaraka-based brewer says raids carried out in Kirinyaga, Nyeri, Laikipia and Meru saw the county governments impound several bottles of Summit Lager and Vienna Ice packaged in EABL branded bottles.

“The intentional use of EABL branded bottles by Keroche is intended to mislead the general public into believing that Summit Lager and Vienna Ice vodka are products of EABL, or are associated or licensed by EABL which is not true in fact,” EABL holds.
bwasuna@ke.nationmedia.com