East African Breweries

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East African Breweries Limited
Type Public
Traded as KN: EABL
Industry Alcoholic beverage
Founded 1922
Headquarters Nairobi, Kenya
Products Beer
Revenue Increase KES: 61.3 billion (2014)
Profit Decrease KES: 10.4 billion (2014)
Owners Diageo Nairobi Stock Exchange
Website http://www.eabl.com

East African Breweries Limited, commonly referred to as EABL, is a Kenya based holding company, which manufactures branded alcoholic and non-alcoholic beverages.

Overview[edit]

The group's headquarters are located in Nairobi, Kenya, with subsidiaries in Kenya, Uganda and Tanzania. The group has distribution partners in Democratic Republic of Congo, Rwanda and South Sudan.

History[edit]

Kenya Breweries was founded in 1922 by two white settlers, George and Charles Hurst.The company is owned by the Dodd family of Kenya. By 1990, most of the shareholders were Kenyan and the company was very successful.

Tanzania Breweries Limited had been started by Kenya Breweries in the 1930s. After being nationalised in 1967, Tanzania Breweries was poorly managed. However, in 1993 the Tanzanian government entered into a joint venture with South African Breweries Limited to run Tanzania Breweries. South African Breweries is one of the largest and most efficient brewing companies in the world. They turned Tanzania Breweries around with extraordinary speed, almost tripling production in the space of three years.

In 2002 East African Breweries Limited (EABL) and SABMiller Plc. effected a share swap of their interests in their subsidiaries: Kenya Breweries Limited and Tanzania Breweries Limited. EABL acquired 20% of the equity of Tanzania Breweries. SABMiller Plc. acquired a 20% equity stake in Kenya Breweries.

The partnership between EABL and SAB Miller in Tanzania went through turbulence in 2009, EABL claiming breach of contract by Tanzania Breweries (TBL) that led to low quality of EABL’s drinks that were produced by TBL and restriction of some of Diageo’s and EABL brands to enter the Tanzanian market. This led to EABL’s acquisition of 51% of Serengeti Breweries Limited (SBL) and exit from TBL's shareholder structure through successful IPO through the Dar es Salaam Stock Exchange. SAB Miller sold it stake Kenya Breweries to East African Breweries.

In 2003, Kenya Breweries consumed almost 6% of the Nairobi water supply.

In 2005, EABL became the first company in East Africa to reach US$1 Billion in value.

Subsidiaries and Investments[edit]

The companies that comprise EABL include, but are not limited, to the following:[1]

  • Kenya Breweries Limited (KBL)Nairobi, Kenya- 100% Shareholding - The flagship company of the group. Established in 1922 and has been the leading brewer in Kenya since it began operations. The company's core business is brewing of Beer and bottling of non-alcoholic malt beverages.[2]
  • Central Glass Industries Limited (CGI) – Nairobi, Kenya - 100% Shareholding - Established in 1987 to produce glass containers in flint, amber and green to internationally required standards. CGI is the leading container glass manufacturer in the East African region. CGI exports more than 50% of it products to countries such as Uganda, Tanzania, Ethiopia, Rwanda, Burundi, Eritrea, Seychelles, Re-Union, Mauritius, Zimbabwe, Zambia and Angola.[3]
  • Uganda Breweries Limited (UBL)Port Bell, Uganda - 98.2% Shareholding - UBL has been a leading brewer in Uganda since it began operations in 1946.[4]
  • United Distillers Vintners (Kenya) Limited (UDV) – Nairobi, Kenya - 46.32% Shareholding - UDV was established in 1962. UDV Kenya Limited is majority owned by Diageo PLC, which holds 53.68% shares. EABL manages the company on behalf of Diageo. Its core business is the manufacture, marketing and sales of spirit based alcoholic beverages. It also imports and distributes premium spirit brands from the parent company.[5]
  • International Distillers Uganda Limited (IDU) – Port Bell, Uganda - 100% Shareholding - Acquired in June 2012 from Selviac Nederland, is a subsidiary of Guinness UDV.[6] The company manufactures, markets and sales of spirits in Uganda.
  • East African Maltings (Kenya) Limited – Nairobi, Kenya - 100% Shareholding - EAML-Kenya plays a vital role of supplying quality brewing raw materials in the form of Malt, Barley and Sorghum to the brewing units of the EABL group in Kenya.[7]
  • East African Maltings (Uganda) Limited - Kampala, Uganda - 100% Shareholding - EAML-Uganda plays a vital role of supplying quality brewing raw materials in the form of Malt, Barley and Sorghum to the brewing units of the EABL group in Uganda.[7]
  • EABL International Limited – Nairobi, Kenya - 100% Shareholding - EABLi (formerly EABL Venture) was set up in 2009, the venture's business was to focus on building the Spirits business in Eastern Africa and driving the geographic expansion through greater focus to drive a total beverage business and through expansion into new markets such as The Great Lakes Region. EABLi operates in Southern Sudan, Rwanda, Burundi and DRC through third party supply, exports, and covering the spirits portfolio for both domestic and duty free sales as well as beer sales in the markets where the group does not have local operations.[8]
  • Serengeti Breweries Limited (SBL) - Dar Es Salaam, Tanzania - 51% Shareholding - SBL is the second largest beer company in Tanzania, with a market share of approximately 28% of the Tanzanian branded beer sector. The company was incorporated in 1988 as Associated Breweries Limited. Its name was changed to Serengeti Breweries Limited in 2002. EABL acquired 51% of the issued share capital of SBL in October 2010.[9]

Ownership and listing[edit]

The largest shareholder is Diageo Plc. EABL's primary listing is on the Nairobi Stock Exchange, and is cross-listed on the Uganda Securities Exchange and Dar es Salaam Stock Exchanges. The shareholding in the group's stock was as depicted in the table below:[1]

East African Breweries Limited Stock Ownership
Rank Name of Owner Percentage Ownership
1 Diageo & Associate Companies 50.03
2 Others via NSE, USE and DSE 49.97
Total 100.0

Products[edit]

Tusker brands[edit]

Tusker
Type Beer, pale lager, premium lager
Manufacturer Diageo
Country of origin Kenya
Introduced 1922
Alcohol by volume 4.2% (regular)
5.0% (malt)
4.0% (lite)
Website Official brand website

Tusker is the main brand of East African Breweries with over 30% of the Kenyan beer market selling more than 700,000 hectolitres per year. Tusker is also the largest African beer brand in the Diageo group.[10] It is a 4.2% ABV pale lager. The brand was first marketed in 1923, shortly after the founder of Kenya Breweries Ltd, George Hurst, was killed by an elephant during a hunting accident. His remaining founder and brother Charles decided to name the company's first ever lager, Tusker, since large, male elephants indigenous to East Africa, were called tuskers.[11] It was in this year that the elephant logo, that is synonymous with Tusker Lager, was incorporated. The slogan "Bia Yangu, Nchi Yangu", means "My Beer, My Country" in Swahili.

In early 2008, the UK supermarket chain Tesco began selling Tusker, followed soon after by Sainsbury's.[12]

Varieties[edit]

Tusker Lager, Tusker Malt Lager, Pilsner and White Cap Lager have received each a Gold Quality Award at the World Quality Selections, organised yearly by Monde Selection, a highly respected International Quality Institute.[13]

Other brands[edit]

The company also makes Uganda Waragi, a 40% ABV brand of waragi, a traditional Ugandan liquor, and the leading branded distilled beverage in Uganda. It is triple distilled and made from millet. It is known in Uganda as "the Spirit of Uganda". The main markets include other African countries such as Rwanda, the Democratic Republic of Congo and Sudan.[14]

In 1965, "The Enguli Act" decreed that distillation would only be legal under license, and distillers should sell to the parastatal Uganda Distilleries Limited, which produced a branded bottled product, marketed under the name Uganda Waragi.

  • White Cap Lager
  • White Cap Light
  • Pilsner
  • Pilsner Ice – 5.2% ABV pale lager
  • Guinness Foreign Extra Stout – 7.5% ABV stout
  • Allsopps Lager – 5.5% ABV lager
  • Senator Lager – 6.0% ABV barley beer
  • President Extra Lager – 6.6% ABV lager
  • Bell Lager
  • Serengeti Lager

EABL Foundation[edit]

The EABL Foundation is the corporate social responsibility arm of East African Breweries, founded in 2005. It assists people in Kenya, Uganda and Tanzania through five areas of activity: water supply, education and training, health, environment, and special projects. Through the skills for life program, The EABL Foundation provides scholarships for undergraduates[15] in the three East African Countries.

Its ongoing projects include the construction of an optical center in Moshi, Tanzania, the support of the Sickle Cell Association of Uganda and the donation of an Ultra Sound Machine to Kirwara Hospital in Thika, Kenya. The foundation has supplied over KSh. 70 million (approx. US$972,000) in university scholarships.

The EABL Foundation conducts special projects in times of disaster and when emergency relief is needed. Most recently, the foundation took part in the Save A Life Fund, in which it donated over KSh. 14 million (approx. US$194,000) towards famine relief.[16]

Association football sponsorships[edit]

Kenyan Premier League[edit]

Main article: Kenyan Premier League

On 21 August 2012, the company signed a deal worth KSh. 170 million (US$2.02 million; £1.28 million; €1.62 million) with the Kenyan Premier League for its renaming to the Tusker Premier League. This made it the most lucrative deal ever made in Kenyan football history.[17]

Tusker F.C.[edit]

Main article: Tusker F.C.

Tusker FC is a football club owned by East African Breweries. It is based in Nairobi, Kenya. It is the third most successful club in Kenya with eight Kenyan league championships and three Kenyan cup wins. In addition, it has won four East African CECAFA Clubs Cup titles.

The club was known as "Kenya Breweries" until 1999, when the current name was adopted. Tusker has two home stadiums, the Moi International Sports Centre, where it mainly plays its home matches, and the Ruaraka Sports Ground.

CECAFA Cup[edit]

In August 2012, East African Breweries signed a sponsorship deal worth US$450,000 with CECAFA to have the CECAFA Cup renamed to the CECAFA Tusker Challenge Cup.[18]

References[edit]

  1. ^ a b "EABL 2011 Annual Report". EABL. June 30, 2011. Retrieved September 16, 2014. 
  2. ^ "About Kenya Breweries Limited | KBL". EABL. Retrieved 2014-09-16. 
  3. ^ "Central Glass Industries | CGI". EABL. Retrieved 2014-09-16. 
  4. ^ "Uganda Breweries Limited | UBL". EABL. Retrieved 2014-09-16. 
  5. ^ "United Distillers Vintners | UDV". EABL. Retrieved 2014-09-16. 
  6. ^ "East Africa: EABL to Buy Distillers in Kenya, Uganda". All Africa. 2002-06-24. Retrieved 2014-09-16. 
  7. ^ a b "East African Maltings Limited | EAML". EABL. Retrieved 2014-09-16. 
  8. ^ "EABL International | EABLi ". EABL. Retrieved 2014-09-16. 
  9. ^ "Serengeti Breweries Limited | SBL". EABL. Retrieved 2014-09-16. 
  10. ^ http://www.beerwriters.co.uk/news.php?x=1&showarticle=346&PHPSESSID=a0a6d73a3a25ca09a5f47
  11. ^ The Agora. "TUSKER : THE STORY BEHIND THE NAME". The Agora. Retrieved 13 August 2014. 
  12. ^ Tusker lager wins Sainsbury's listing – Talking Retail
  13. ^ Kenya Breweries Achieves Gold At Monde Selection, africanselect.com, Monday, 26 July 2004
  14. ^ [1]
  15. ^ EABL Foundation. "EABL Foundation Scholarships". www.eablfoundation.com. Retrieved 13 August 2014. 
  16. ^ https://www.eablfoundation.com/success-stories
  17. ^ "KPL now Tusker PL in Sh170m deal". 98.4 Capital FM. 21 August 2012. Retrieved 21 August 2012. 
  18. ^ Bonnie Mugabe (30 August 2012). "Challenge Cup brought forward". The New Times. Retrieved 1 September 2012. 
Bibliography
  • Justin Willis, Potent Brews: A Social History of Alcohol in East Africa, 1850–1999, British Institute in Eastern Africa (2002), ISBN 0821414755

External links[edit]