Carbonates in Kenya

PROSPECTS

Smaller brands set to shake up carbonates

The carbonates category is expected to continue growing amidst fierce competition among players, with new entrants set to gain share. During 2019, Bidco Africa Ltd launched its Bubble Up and Planet carbonate ranges, setting the scene for intensified competition in the category.

Sugar-free, on-the-go-friendly, and nutritionally transparent – three keys to success in carbonates

During 2019, Coca Cola East & Central Africa Division introduced launched new sugarless portfolios for Coca-Cola, Fanta, Sprite and Stoney, targeting health-conscious consumers as more and more Kenyans turn away from sugary drinks. Other manufacturers such as Highland Mineral Water Co Ltd with its Club Cola Soda range, Bidco Africa Ltd and Seven-Up Bottling Co (SBC) Kenya Ltd are expected to launch sugar-free products too.

Carbonates and other soft drinks become more traceable

In 2019, the Kenya Revenue Authority (KRA) announced the implementation of the Excisable Goods Management System (EGMS) on bottled water, juices, carbonates, energy drinks and other non-alcoholic drinks. This move involves the compulsory usage of new-generation digital excise stamps by manufacturers and importers of the relevant beverages.

COMPETITIVE LANDSCAPE

No sign of the bubble bursting for Coca-Cola

Coca-Cola East & Central Africa maintains its strong lead in carbonates. Its performance is attributed to its high-level advertising, which has led to higher brand-awareness, as well as a well-established distribution network and the strong brand image of its products.

Keeping customers will be tougher as sugar concerns rise

Growing health-awareness amongst Kenyans is expected to limit volume sales growth over the forecast period. The rising health-awareness of the harmful effects of consuming too much sugar, such as suffering from obesity and diabetes, is predicted to give carbonates a negative connotation, particularly amongst upper- and middle-income consumers who have increased purchasing power and can be more discerning in regard to what they drink.

The future is bright (and purple) for Kevian Kenya

During 2019, Kevian Kenya Ltd, producer of popular juice brands Afia and Pick N Peel, signed an exclusive franchise deal with British firm Vimto International to produce and market the Vimto carbonated drinks brand in Kenya. Vimto International, which has been serving the Kenyan market through imports, is expected to benefit from the extensive local distribution network that Kevian Kenya Ltd has established over the years.

Files are delivered directly into your account within a few minutes of purchase.