East African Breweries

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East African Breweries
Type Public
Traded as KN: EABL
Industry Alcoholic beverage
Founded 1922
Headquarters Nairobi, Kenya
Products Beer
Owner(s) Diageo Nairobi Stock Exchange
Website http://www.eabl.com

East African Breweries Limited is a large East African brewing company which owns 100% of Kenya Breweries, 98.2% of Uganda Breweries, 100% of Central Glass – a glass manufacturer, 100% of Kenya Maltings and 46% of United Distillers and Vintners (Kenya) Limited, 100% of International Distilers Uganda, 100% EABL International (responsible for exporting), 100% of East African Maltings, 100% EABL Foundation and 51% of Serengeti Breweries limited.

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 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.

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.

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.[1] 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. 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.[2]

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.[3]

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.[4]

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.

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.[5]

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.[6]

Association football sponsorships[edit]

Kenyan Premier League[edit]

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.[7]

Tusker F.C.[edit]

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.[8]

References[edit]

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]