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Tusker, Pilsner to be sold in new ‘kadogo’ bottles

Beer maker East African Breweries Limited (EABL) will launch 300ml and 330ml bottles for its Tusker and Pilsner beer brands targeting lower-income consumers.

The regional brewer is piloting the new 330ml Tusker and Pilsner 300ml in several down-market bars across the country ahead of an official launch mid-November.

The EABL is selling the new beers christened “passport” at Sh90 per bottle, but says an ongoing market research will inform the final recommended retail price (RRP) of the drinks.

“We are currently engaged in a controlled market test across the country,” said EABL’s Group Corporate Relations Director Julie Adell-Owino in an interview.

LOWER MARKET

She said: “We plan to distribute these smaller formats in our lower mainstream channels where price has been proven to be the biggest barrier to accessibility of our brands. The full launch will be restricted to the lower market channels.”

The brewer, which in August reported a 40 per cent increase in full-year profit to Sh9.6 billion, has until now packaged its flagship Tusker and Pilsner beers in 500ml glass bottles.

However, canned versions of these brands exist in 500ml and 330ml for Tusker and 500ml for Pilsner, a choice which EABL is now extending to its customers who prefer the beer in glass bottles.

Guinness is the only mainstream beer that has been retailing in two bottled versions and the inclusion of Pilsner and Tusker now leaves White Cap Lager as the only top brand exclusively packaged in a 500ml glass bottle.

MARKET TEST

“The findings of this market test will inform the final RRP that will be offered to consumers. Suffice to say, the proposed price should provide the expected accessibility to the intended consumer,” said Ms Adell-Owino.

In the year to March, EABL’s mainstream beers such as Tusker and Pilsner and emerging brands Balozi, Allsopps and Senator each reported a two per cent dip in revenue.

“Our mainstream beers were challenged hence the softening in revenues this year. In the current financial year, Tusker will remain our main focus,” said the Kenya Breweries Limited managing director Jane Karuku during the release of EABL’s full-year results.

The brewer attributed the depressed performance to the 50 per cent excise tax slapped on low-end Senator Keg and depressed sales of the company’s mainstream beers.

SOURCE: Business Daily