For Online E-newspaper
Daily Nation : February 17th 2014
28 | BUSINESS LIFESTYLE | Study says people willing to spend more on entertainment Kenyans growing taste for high end drinks with rising incomes Consumers part with as much as Sh10,000 for a tot of their favourite tipple BY JOSHUA MASINDE @masindej Jmasinde@ke.nationmedia.com A growing number of Kenyans are switching to high end premium alcoholic beverages as the number of middle income earners and super rich rises. Statistics released by East Afri- can Breweries Limited, the largest distributor of whisky and spirits in the country, show that high end premium drinks — whose prices range between Sh50,000 and Sh100,000 a bottle — grew by 50 per cent over the six months to December 2013. A single tot costs between Sh8,500 and Sh10,000 depending on the ambience in which it is served. “We are delighted to note that our most expensive spirits have grown by over 50 per cent,” EABL’s group managing director, Mr Charles Ireland, said during an investors briefing last week. High income class According to Euromonitor Inter- 50 Percentage by which premium beer sales grew during the halfyear period national, a London-based market intelligence firm, the wealthiest class in African countries is set to grow significantly with Kenya’s social class A — the rich or high income class category — projected to rise 28 per cent by 2020. This is one of the highest forecasts in the world. In China, the social class A is set to grow 4 per cent in the same period. Scotch brand is particularly a classic signifier of status, especially among younger men, according to Jorgen Hector, director at TNS, a global market research and information group. “With sleek bottles carefully de- FILE | NATION The rising middle class and incomes are seeing more Kenyans turn to premium alcohol brands. signed to display their value, premium whiskies are one of the many ways in which increasingly affluent Kenyan consumers are displaying their new found confidence and wealth,” Mr Hector said in earlier interview. Marketers in Kenya have turned this model on its head, positioning it as a modern, aspirational beverage linked to success. EABL notes that Kenya is now among the fastest-growing markets in the world with official imports of Scotch whisky rising by nearly three quarters (73 per cent) between 2010 and 2011. While announcing the company’s financial performance for the half year period ending December 2013, Mr Ireland said they will focus more on expanding the premium segment of its beverages following the good results. Performance in the premium beer and spirits category outshone that of the low cost beer, where the Senator Keg brand was the hardest hit by enforcement of a 50 per cent excise duty on October 1, 2013. “We expect consumer behaviour to go premium as more and more people become wealthy,” said Mr Ireland. Japan acts to deepen trade ties with Kenya BY NATION CORRESPONDENT Plans to promote retail trade partnerships between Kenya and Japan have received a boost with the Japan External Trade Organisation (Jetro) saying it will host a one-month exhibition starting February 25. Jetro said it will partner with local retailer Nakumatt and consumer products distributor Radbone Clark Kenya in setting up a one-month showcase of Japanese consumer products here. In a statement, Jetro Kenya country director, Mr Hiroshi Komatsuzaki, said plans are at an advanced stage to host the Japanese products sales exhibition dubbed Antenna Shop! Japan 2014 at Nakumatt Mega’s outlet in Nairobi. “Jetro will showcase more than 10 com- panies’ products at Nakumatt Mega for one month,” said Mr Komatsuzaki. He said during the trial sale, Jetro will conduct on-site interviews with customers, where their feedback will allow Japanese companies to study customer needs to enable it build a strategy to promote its goods in the Kenyan market. Products to be showcased will range from foodstuff such as fish sausages, canned fish and ready-to-eat curry sauces among others. The exhibition will also showcase healthcare and beauty products ranging from toothbrushes, sun blocks, cosmetics like cleansers, lotions and creams among others. DAILY NATION Monday February 17, 2014 INDUSTRIAL ACTION South African mining firm to sue trade union for damages P.30 Laptrust to advise arm of the AU BY NATION CORRESPONDENT The African Union’s economic growth arm, New Partnership for Africa’s Development, has appointed county pension administrator Laptrust as its advisor in Kenya. The trust will be charged with offering retirement benefits and administration services to the Nepad secretariat in Nairobi through its consultancy arm Laptrust Administration Services (Laser). “We are pleased to bring on board Nepad and look forward to a long and fulfilling partnership. I encourage more organisations locally to emulate Nepad and embrace the culture of retirement savings, a critical step to realising social security in this country,” We are pleased to bring on board Nepad and look forward to a long and fulfilling partnership, ” Mr Kili said Laptrust’s chief executive Hosea Kili in a statement. Laptrust, which is set to change its name to reflect the county administrative structure resulting from the enactment of the Constitution in 2010, has been involved in training in the retirement and technology sectors in Kenya and South Sudan through Laser.
February 16th 2014
February 18th 2014