Kenyan distributor Crown Beverages has signed a deal with Italy’s Campari Group to distribute premium alcohol brands in Kenya.
Crown Beverages is a subsidiary of Coca-Cola Beverages Africa (CCBA). CCBA was formed in 2014 when Crown Beverages’ owner SABMiller, The Coca-Cola Company and Gutsche Family Investments all came together. CCBA is Africa’s biggest soft drinks company. It operates in eleven countries and manufactures and sells 40 brands from more than 30 bottling plants in Africa. The company reports that it holds the number 1 market position and sold more than 5.1 billion litres of soft drinks in 2016.
Crown Beverages has a liquor licence and has always sold alcohol. When the opportunity came for CCBA’s distribution agreement with Campari, “it was easy to put it in that existing entity” says CCBA Managing Director Daryl Wilson.
Campari Group was founded in 1860 and ranks sixth in the global spirits industry. It owns fifty premium and super premium brands of spirits, liqueurs and wines, produced at its fourteen manufacturing plants across Europe and the Americas. The new agreement includes distribution of Campari aperitif, SKYY vodka and Glen Grant single malt whisky among many others.
The agreement will put CCBA in competition with local distributors and producers. These include East African Breweries (EAB) and Wines of the World. EAB, which is owned by multinational Diageo, is the Kenya-based manufacturer of local beer Tusker, traditional liquor Uganda Waragi and Guinness. Wines of the World is one of Kenya’s leading wines and spirits distributors. CCBA will also compete with Pernod Ricard which owns Jameson, Absolut Vodka and Mumm champagne, and imports and distributes through local distributors.
Since 2016, Coca-Cola has invested US$92m in a production and packaging line in Nairobi. It has been looking for opportunities to diversify its portfolio and move away from sparkling soft drinks. Sales volumes have decreased globally in recent years, with both Coca-Cola and PepsiCo reporting lower sales as consumers move towards healthier options. Regarding distribution of premium alcohol brands, Mr Wilson says “we were very happy to take this on as an addition to our portfolio”.
