Kenya: Sobering Reality for Liquor Sector As Covid Shrinks Market

Kenya: Sobering Reality for Liquor Sector As Covid Shrinks Market

For the workers remaining at the East African Breweries Limited (EABL), the hundreds of alcohol crates that are almost consuming the entire parking bay as trucks offload others daily are testament to how badly the Covid-19 pandemic has hit the liquor industry.

Where trucks waiting to load alcohol used to park, now lay heaps of crates that have been brought back from distributors’ depots — creating a beautiful view for a non-interested party but evoking pain from casuals and drivers who are going for weeks without a job.

To every worker who has been making a living from the EABL, the crates paint the truest picture of the unpleasant impact of continued closure of bars and alcoholic joints in the country, now for the fourth month.

"Almost the entire parking area has been filled with the crates being brought back by lorries ferrying alcohol to different parts since distributors no longer have use for them. They are a sign that no alcohol is being sold," said Mr Ngure, a driver of one of the trucks.

EMPTY BOTTLES

Having no market for alcohol any longer, most liquor distributors and dealers have resolved to return the crates and empty bottles to the company, coming back in big numbers so that some vehicles are lacking space to offload them.

But it is not only crates coming back from the market. The driver said trucks have also been returning expired alcohol, especially spirits, after depots and bars were unable to sell. "Some of these lorries parked outside the gate waiting to enter are returning crates while others are bringing returns of expired alcohol," Mr Ngure said.

The returns have been the main proof of how the market, especially for spirits, has shrunk. The brewer has been destroying the alcohol. The situation has been dire with the United Distillers Vintners (UDV) department, which produces spirits, suffering the most. The company has been mainly relying on alcohol sold in cans and supplying to supermarkets since the order to close all bars was effected.

"Ever since bars were closed, operations at UDV have been unpredictable. Sometimes it is closed and sometimes working. For example, I was supposed to transport some alcohol but it has not been operational since Saturday," Mr Ngure said.

The plant was recently shut down temporarily after about five staff reportedly tested positive for Covid-19. EABL declined to respond on grounds that it was on a closed period.

FINANCIAL PAINThe impact has been […]

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