EABL extends sorghum growing to Siaya

Last Updated 15 years ago by Kenya Engineer

East African Breweries (EABL) has extended its commercial sorghum growing project to Siaya in an effort to secure more supplies for its low-cost beer brands. EABL has in the past few years increased its partnership with sorghum growers in various parts of the country as it seeks to reduce reliance on the relatively expensive barley, part of which is imported.
The growth of products made from local sorghum means the company will have access to cheaper raw materials whose supply can be better managed. The company is betting on growing consumption of its Senator beer brand to expand market share in the low-end segment where increased competition is expected from the new laws legalizing traditional, often cheap, liquor.

Its middle and high-end beer markets has also come under threat from the expansion of rivals such as SABMiller who have launched several new brands in the past six months. The new alcohol laws, popularly known as the Mututho laws, have slowed down overall beer consumption by reducing the number of hours bars can operate.

With, rising taxes and operational costs having also eaten into the brewer’s profit margins, the use of cheaper raw material is expected to aid in lowering their cost of production.

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