African Originals seeks to raise US$2M to expand cider production amid rising demand
The funding will enable African Originals to scale production and strengthen its market position as demand for ciders surges among Kenya’s younger consumers.
KENYA – African Originals Ltd (AOL), a Kenyan startup specializing in locally sourced alcoholic and non-alcoholic beverages, is seeking to raise US$2 million to support its expansion as demand for its KO cider brand grows among younger consumers in the region.
The company has conducted eight fundraising rounds, attracting investment from Phoenix Beverages Ltd, IBL Ltd, Perivoli, Amaya Capital Ltd., Chandaria Capital, and Federico Pirzio-Biroli.
The latest funding round includes US$1 million in equity and US$1 million in debt to finance working capital and capital expenditures for increased production capacity, CEO Alexandra Chappatte revealed in an interview with Bloomberg.
Kenya ranks as Africa’s third-largest cider market after South Africa and Mozambique, according to research firm IWSR.
While beer volumes in Kenya experienced a compound annual growth rate (CAGR) of 2% from 2013 to 2018 and 1% from 2018 to 2023, cider sales have shown stronger momentum.
Kenyan ciders have averaged 7% annual growth, and IWSR projects a 9% CAGR through 2028.
KO cider, which contributes 80% of African Originals’ revenue, commands a 40% market share in retail chains. The brand primarily targets Kenya’s youthful middle class, where one in four people are aged 18 to 34.
“The vibrancy that you see outside is really to play on everything that comes with the chaotic vibrancy that you see in Kenyan life,” Chappatte said. “It’s not all perfectly ordered. It is chaotic, but there’s a beauty to that.”
African Originals previously raised US$2 million (KES 257.4 million) from international investors in September to scale production, expand its product portfolio, and grow its presence within Kenya and beyond.
The funding efforts aim to bolster African Originals against established competitors in the Kenyan cider market.
East African Breweries Ltd (EABL), through its Kenya Breweries unit, introduced Tusker Cider nearly a decade ago, targeting millennial consumers. The company has since expanded its cider offerings with Snapp Dry Cider and Manyatta.
Kenya Wine Agencies Limited (KWAL) has also expanded its cider protfolio with the launch of Savanna 0.0, a premium non-alcoholic cider.
Savanna, a globally recognized brand, is the world’s largest cider by volume, available in over 60 countries.
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