East African Breweries Limited re-strategizes operations to weather COVID-19 storm

KENYA – The East African Breweries Limited (EABL) has taken conservative approaches to new investments and cash use as it seeks to weather the COVID-19 storm. According to reports by Citizen Digital, the company has suspended environmental investments which include solar energy, biomass and water recovery as a means to manage costs and liquidity. Spending into advertising and promotions (A&P) was the first to take a cut in light of business risks posed by the pandemic. “Our market teams re-organized their plans to help us emerge stronger from the crisis…

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EABL introduces carton packed beers encouraging bulk buying to up take-away sales

KENYA – East African Breweries Limited (EABL) has started selling its bottled beer brands in packs of six, stacked in a carton containing 24 bottles, shifting from use of crates, in a bid to make it convenient for consumers to purchase and encourage bulk buying for take-away. The brewery is counting on deliveries and the off-trade market to sustain its business, as the ban on alcohol sale in bars and restaurants continues in Kenya which has hit its bottom line for the just concluded financial year. EABL recorded a 9%…

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EABL reports double digit decline in profit triggered by dwindling sales in second half year period

KENYA – The East African Breweries Limited (EABL) has announced a 39% decline in net profit to Sh7 billion (US$64.9m) for the year ending June 2020, due to the plunge in net sales in the second half of the year (January – June) attributed to the effects of the COVID-19 pandemic. The latest performance is in contrast to the Sh11.5 billion (US$106.7m) net profit posted in the previous financial year and is the lowest since 2014 when it posted net profit of Sh6.85 billion (US$63.5m). The company has seen a…

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Kenyan sorghum farmers set to bag more earning in a new EABL trade deal

KENYA – The East African Breweries Limited (EABL) has entered into a trade deal with Sorghum farmers of Tharaka-Nithi county in Kenya that will see the farmers sell their produce directly to the brewer, eliminating middlemen who offer poor prices. The sorghum farmers, according to reports by Business Daily, will be required to deliver their produce to the nearest county cereal stores where EABL aggregators will be buying from. In addition, the partnership will see farmers benefit from extension services such as offering of seeds that will improve quantity and…

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East African Breweries International Limited in US$2.6m tax arrears battle with Uganda Revenue Authority

UGANDA – The Tax Appeals Tribunal of Uganda has ordered East African Breweries International Limited (EABIL), a wholly owned subsidiary of East African Breweries Limited (EABL) and incorporated in Kenya to pay Uganda Revenue Authority (URA) tax arrears of Shs9.7b (US$2.6m). The arrears, according to documents, accumulated over a period of seven years for income received on transactions involving Uganda Breweries Limited, the Ugandan operating arm of EABL and EABIL, reports Daily Monitor. The Tribunal heard that EABIL was purchasing and disposing stock where the company purchased goods from Uganda…

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East African Breweries announces US$5m fund to support hospitality industry recovery

KENYA – The East African Breweries Limited (EABL) has launched a Sh532 million (US$5m) recovery fund aimed to help pubs and bars recover from the effects of the COVID-19 pandemic when they resume operation. The two-year programme dubbed “Raising the Bar” is part of the US$100 million (ksh10.6 billion) kitty announced by EABL’s parent company, Diageo that will be rolled out from July 2020 in different markets. “The fund is expected to support the recovery of major hospitality centres including New York, London, Edinburgh, Dublin, Belfast, Mexico City, Sao Paulo,…

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Serengeti Breweries launches new beer pack for Pilsner Lager

TANZANIA – Serengeti Breweries, a subsidiary of East African Breweries Ltd (EABL), has launched a new beer pack for its Pilsner lager brand in a bid to penetrate wider market, targeting consumers in the Lake zone regions in Tanzania. SBL said the new beer pack is intended to give consumers and the market more and best choices at reasonable price, reports Daily News. “The residents from the lake zone regions who are famed for their hardworking spirit will enjoy Pilsner lager 300ml dubbed ‘imara kama simba’ at affordable retail prices,”…

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COVID-19 Update: East African Breweries donates additional funds towards the national fund kitty

KENYA – East African Breweries Limited (EABL) has donated KSh50 million (US$468,000) to the Kenya COVID-19 Emergency Fund, supplementing its other efforts to contain the spread of the coronavirus in Kenya. The brewer had already spent Ksh50 million (US$0.47m) to fund the production of 135,000 litres of sanitizers by two Nairobi-based industries to distribute free sanitizers to vulnerable Kenyans. The company also undertook a public awareness campaign to help fight the spread of Covid-19 printing posters for distribution to more than 40,000 outlets across Kenya. EABL Group MD, Andrew Cowan,…

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Food Industry companies facing tough economic conditions projecting drop in earnings

KENYA – The COVID-19 pandemic lockdown, movement restrictions, temporary ban of some products and services experienced in different parts of the world has resulted to companies face a tough economic situation and harsh operating environments resulting to deeming revenues. East Africa Breweries Limited (EABL) having operations in Kenya, Uganda and Tanzania has issued a statement warning of a decline in profit after tax of approximately 25% for the financial year ending 30 June 2020 versus prior year. “The COVID-19 global pandemic and the subsequent response measures taken across the region…

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KBL unveils new pack for WhiteCap Lager commemorating its 70-year heritage

KENYA – Kenya Breweries Limited (KBL), subsidiary of the East African Breweries Limited (EABL) has unveiled a new pack design for its WhiteCap Lager brand which includes a redesigned logo adapted from its original, historic form, highlighting its 70-year heritage. The brewer said it was returning to the inaugural model of WhiteCap that existed 70 years ago when the brand hit the market, seeking  to position it to be a leading brand in the premium category. “The new pack also represents a reinforcement of KBL’s strategy of positioning WhiteCap Lager…

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