The alcohol industry in Kenya is an essential sector of the economy, with a wide range of alcoholic beverages produced and consumed in the country. The industry comprises both large multinational companies and small-scale traditional producers, offering consumers a diverse selection of beer, spirits, wine, and other alcoholic beverages. However, distributors face challenges in capturing more of the HORECA industry in Kenya.
The Kenyan alcohol market was valued at approximately KSH 330 billion (approximately $3 billion) in 2021. Beer is the most popular alcoholic beverage in Kenya, accounting for about 63% of the market share. Some of the most popular beer brands in Kenya include Tusker, Pilsner, and White Cap, which are produced by multinational beverage companies such as East African Breweries Limited (EABL) and Kenya Breweries Limited (KBL). Spirits are the second most popular alcoholic beverage in Kenya, accounting for approximately 27% of the market share. Popular spirit brands in Kenya include Johnnie Walker, Smirnoff, and Kenya Cane.
Distributors in the Kenyan alcohol industry need help to capture more of the HORECA industry, including hotels, restaurants, and cafes. One major challenge is market fragmentation, with many small and independent businesses operating in the sector. Additionally, distributors face competition from large multinational companies that have established relationships with key HORECA customers.
Alcohol businesses that supply to restaurants and hotels can improve their distribution and sales by taking the following steps:
Offering credit to hotels and restaurants can increase the amount of products these establishments purchase from distributors. As hotels and restaurants can buy more products with credit, this can lead to increased sales revenue for the distributor.
Establish a reliable and efficient distribution network to ensure that your products are delivered to your customers on time and in the right quantity. This may involve investing in transportation infrastructure, hiring and training delivery personnel, and developing partnerships with third-party logistics providers.
To offer credit and manage distributors effectively, use technology to improve your distribution process, including digital ordering platforms, inventory management systems, and data analytics tools to monitor sales performance and customer demand. Caantin works with leading alcohol vendors to equip their sales and finance teams with the tools to sell and track payments.
In conclusion, the multi-billion-dollar Kenyan alcohol industry is an essential sector of the economy, with beer being the most popular alcoholic beverage in the country. However, distributors in the industry face challenges in capturing more of the HORECA industry. Still, opportunities exist to build relationships with key customers and develop specialised products and marketing campaigns.