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EABL banks on home deliveries, off trade to stay afloat

EABL banks on home deliveries, off trade to stay afloat

•The brewer has reported a 39 per cent decline on its net profit for the year ended June 30, 2020, which fell to ShSh7 billion from Sh11.5 billion.

•During the period under review, EABL net sales dropped 9.2 per cent to Sh74.9 billion from Sh82.5 in 2019.

East African Breweries Limited (EABL) is counting on deliveries and the off-trade market to sustain its business, as the ban on alcohol sale by bars and restaurants hits its bottom line.

The brewer has so far reported a 39 per cent decline on its net profit for the year ended June 30, 2020, which fell to ShSh7 billion from Sh11.5 billion in the previous year, with shareholders missing out on final dividends.

During the period under review, EABL’s net sales dropped 9.2 per cent to Sh74.9 billion from Sh82.5 in 2019, blamed on effects of Covid-19, mainly regulations to contain the spread of the virus, which led to closure of bars and limited operating time for outlets. “Across the markets, we have tracked changes in consumer behaviour and repurposed our execution plans in trade to continue serving our consumers where safe and possible to do so,” EABL Group MD and CEO, Andrew Cowan, said yesterday.

President Uhuru Kenyatta on Monday announced there shall be no sale of alcohol in restaurants and eateries for the next 30 days, with all bars and night clubs remaining closed indefinitely.

"Licenses of bars will be withdrawn permanently if found operating," Uhuru said.

The entities are the biggest movers of alcoholic drinks, a cause of concern for brewers in the country

Cowan yesterday said the company is keen to retain its market share through an off-trade market strategy, an initiative that commenced in March when the nation-wide curfew and partial closure of the economy came into place.

“Consumer demand has increased off-trade so we have derived new channels to ensure supply of all our quality products,” Cowan said, noting the company has invested in easily deliverable products such as ensuring all its beers are in cans.

The off-trade market includes retail outlets like hypermarkets, supermarkets, convenience stores, mini markets and wines and spirits shops, which continue to sale alcohol.Most of these outlets are allowed to sale alcoholic drinks but strictly on a take-away basis.“We have online, distributors using boda boda’s to deliver, supermarkets and premises which have come up with packages for delivery. It is going to be a challenge but we continue innovating,” said Jane Karuku-EABL […]

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