Business & Financial News

KWAL targets 50pc cider market with new production line

Kenya Wine Agencies (KWAL) has unveiled a new production line for the local manufacture of ciders as it seeks to capture 50 per cent of the cider and mixed drinks segment by year end.

“Our focus is to occupy at least 50 per cent of the cider and mixed drinks segment by the end of the year. We plan to do this by taking advantage of our wide distributor network as well as use of 3rd party listing agencies to supplement the sales team,” said KWAL’s Managing Director Ms. Lina Githuka.

She was speaking Monday during the launch in the company of Chris Lombard who is a member of the company’s Board as well as the Cider project lead Mr. Robert Bajner.

“As we celebrate 50 years of being in business, our focus is on business expansion as well as growth in market share across all the products in our portfolio. The cider production line will initially focus on Hunters Gold which is currently Africa’s largest-selling cider. This project has been in the making for the past one and a half years and we do anticipate that it will be a game changer for KWAL in the market.”

She said the move was inspired by Kenya’s shifting trends in 2018 on alcohol consumption influenced by a huge move to cider preference. Kenyans consumed an estimated 9 million liters of ciders in 2018 causing an 8.5 per cent and 8.1 per cent decline in the beers and mixed drinks segment respectively.

The Launch of the cider production line comes at a time when KWAL is celebrating 50 years in the alcohol manufacturing business. The company was established in 1969 as a State Corporation and has been in operation for the last 50 years.

In 2016 Centum sold its shares to Distell, making Distell the largest shareholder with 52 per cent ownership of KWAL.

There has been a surge in the number of shopping centres in Kenya, such as The Hub Karen Mall, Two Rivers Mall and Garden City. These shopping centers usually boast a wide array of restaurants catering for all types of consumer demand.

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