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Keg creates own space in saturated beer market

Wednesday, October 21st, 2020 00:00 | By
In 2004 EABL launched Senator Keg targeted at low income consumers as an affordable alternative to illicit alcohol. Photo/PD/FILE

Fashioned to counter illicit brew in the country, Senator Lager Keg, a beer produced and marketed by the East African Breweries Limited (EABL), has emerged the fastest growing brand on the African continent leveraging on a 10-million-man pool for drinkers.

In a recent ranking by London-based firm Brand Finance, Senator Lager Keg, emerged the fastest growing brand in Africa, having grown by 88 per cent to hit a brand value of Sh14.4 billion ($132 million).

Sales of the beer, rose significantly particularly in 2019 according to the survey. 

This coincides with the firm’s bullish marketing drive leveraging the theme “Imarisha maisha na Senator”.

“Since its inception, Senator Lager has become popular amongst workers, some of whom have switched to the brand from homemade alternatives due to its very low prices,” reads the report by Brand Finance.

“Sales of Senator rose by a third over the previous year, which has helped to offset some of the difficulties that both Diageo and East African Breweries Limited are encountering as a result of higher taxes in Kenya,” it adds.

Daily consumers

Documents available to Business Hubfrom the firm show that the number of daily Senator Keg consumers has risen from 8.2 million last consumers to 9.8 million currently.

According to the document, the brand targets an ordinary gig worker, seeking inspiration in life and one who would ordinarily consume illicit brew in tough economic times.

The growth was to a large extent brought about by a national consumer promotion the company has been running for the last two yrs dubbed Imarisha maisha na Senator.

The report attributed the growth to a more stable business environment over the last year, as well as an increase in production capacity.

 The war on illicit brew in Kenya is majorly led by the Ministry of Interior through the National Authority for the Campaign Against Alcohol and Drug Abuse (Nacada) and the “provincial administration.” 

The beer brand was established in 2012 by Diageo in a bid to tap opportunities for growth in the emerging economies at a time when beer markets in developed economies were getting saturated.

The introduction of the Senator Keg coincided with the introduction of the Alcoholic Drinks Control Act (2010), better known as Mututho Laws, which sought to curb the brewing and consumption of illicit brews in the country.

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