Cheap beer boosts profits at EABL

Low-end brands such as Senator beer helped East African Breweries Ltd. (EABL), Kenya’s largest brewer and spirits producer, post a 7 percent increase in full-year profit to 10.3 billion shillings (USD 101.6 million) in the 12 months through June 2016.

“The performance was largely driven by continued growth in the spirits category, recovery of Senator in Kenya, and innovation across all markets,” EABL said in a statement at the end of July 2016.

The so-called emerging beer segment, a euphemism for budget beers, which includes brands like Senator in Kenya, Ngule in Uganda and Pilsner in Tanzania, grew by 112 percent. EABL’s sales of mainstream beer were down 6 percent, while premium and emerging spirits declined by 9 percent and 2 percent respectively, it was reported.

EABL, which is 50.03 percent owned by Diageo, said the group’s net sales were flat following a declining performance in its South Sudan business, due to intermittent fighting between men allied to the president and his main rival.