Market leader Coca-Cola has introduced a new soda in 425ml plastic bottles as it expands its range of product servings. This is in a bid to defend its share of the soft drinks market, which is under pressure from rivals that have strengthened their presence.
In October 2017, Kenya Revenue Authority (KRA) gave public notice that with immediate effect from November 2017 soda manufactured or imported into Kenya would bear an excise charge of KES1.50 per stamp.
In the review period, The Coca-Cola Co and Nairobi Bottlers were accused of discriminating against consumers of glass bottled drinks since they do not have nutritional information, an e-mail address and storage directions unlike the plastic counterparts. The Kenya High court therefore ruled that all consumers are equally entitled to access the information on the labels and, therefore, there was no justification for having the information on the plastic bottles only.
Coca-Cola East & Central Africa maintains its 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.
Growing health-awareness amongst Kenyans is expected to slow down sales growth over the forecast period. The rising health-awareness of the impact 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.
In the review period, Coca-Cola launched a lemon-flavoured carbonated drink, Schweppes +C, which targets a mature and health-conscious consumer base. The company is investing in diversification and innovation in line with changing consumer tastes and preferences for healthier drinks.
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This industry report originates from Passport, our Soft Drinks market research database.