East African Breweries to Distribute Diageo’s Wines

By Eric Ombok

May 31 (Bloomberg) -- East African Breweries Ltd., the Kenyan unit of Diageo Plc, will distribute Diageo’s Blossom Hill wine range in Kenya.

The wines will initially only be available in the capital, Nairobi, EABL Venture Ltd. Managing Director told reporters in the city today. They will then be introduced in neighboring Uganda and Tanzania, Ithau said. East African Breweries created Tanzania-based EABL Venture on Sept. 8, 2008 to spearhead expansion of its spirits business.

East African Breweries, which controls about 95 percent of the Kenyan beer industry, is targeting market share of as much as 20 percent within the first year, she said. “Ten percent is the minimum we are going for,” Ithau said.

Kenya, whose economy is East Africa’s biggest, is estimated to have a wine market of 6.2 million liters (1.6 million gallons) worth 2.5 billion shillings ($31.3 million), Ithau said. The industry has reported year-on-year growth of about 25 percent, the “fastest-growing category within the alcoholic beverages segment,” Ithau said.

--Editors: Ana Monteiro, Antony Sguazzin.

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net.
To contact the editor responsible for this story: Antony Sguazzin in Johannesburg at asguazzin@bloomberg.net.