•The company recorded a net sales decline of 3% to Sh44.5 billion for the half-year ended December 2020.
•eCommerce and off-trade remain key drivers of sales this year as the brewer continues making investment in can beers and spirits. Beer production activities at East African Breweries Limited’s Ruaraka plant in Nairobi/File East African Breweries Limited (EABL) continues to bank on eCommerce and off-trade to drive its sales this year, after recovering from a tough first half of 2020.
This, as it anticipates for re-opening and full operations by bars( on-trade) in the near future, which remains a mainstream channel for its sales.
The regional beer and spirits maker recorded a net sales decline of three per cent to Sh44.5 billion for the half-year ended December 2020, compared to the same period last year.
The performance is however 53 per cent better than the previous half (January to June 2020) that was significantly impacted by Covid-19 restrictions.
During the July-December period, the Group reported a half-year profit of Sh3.8 billion, a significant improvement compared to the Sh0.2 billion loss recorded in the January-June 2020 half.
Management now says it will continue with its investment strategy towards a post-covid recovery, with double digit growth remaining its target.
In Kenya, off-trade remains one of its key selling points as the Covid restrictions on bars’ operating hours remain in place.
Off-trade market includes retail outlets like hypermarkets, supermarkets, convenience stores, mini markets,and wines & spirits shops.
According to managing director for Africa Regional Markets, Andrew Cowan, the company has witnessed a shift in market trends which informs its continued investment to ensure business continuity and product delivery.
This includes demand for home deliveries, family occasions and groups avoiding traditional drinking places such as bars and night clubs.The company continues to make heavy investments in canned beer, one-way beer bottles and wines and spirits brands.“We will also continue investing and driving sales of our bottled flagship beers across all markets in the region,” Cowan said during a media briefing on Friday.The company’s eCommerce investment and business is currently 10 times bigger than pre-Covid-19, Cowan noted, an indicator more people prefer deliveries and consumption at homes in the wake of the night curfew.In the first half of the 2021 financial year, EABL’s spirits net sales grew by 10 per cent , partially offset by beer net sales decline of eight per cent against the same a year before.Decline in beer sales was primarily driven by […]