Cider/Perry in Kenya

PROSPECTS

New customer-driven product launches are expected

The launch of Tusker Cider by East African Breweries, which is a drink made from fermented apples and pears, is expected to take advantage of the burgeoning group of affluent young adults, and new beer consumers whose tastes are shaped by digital media and top-of-mind awareness. As a result, the category is expected to witness growth in the number of diversified and sophisticated products offered by local and global liquor manufacturers.

Heightened marketing and innovation are expected to support sales

In Kenya, the cider/perry category remains a niche, with women being the principal consumers. Nevertheless, intensified brand awareness, created by the launch of Tusker Cider by East African Breweries in 2016, accompanied by television advertisements, in-store posters and banners and billboards, is expected to boost volume sales in the category.

Unlocking the aspirations of new shoppers

A bottle of cider retails at a significantly lower price than a glass of wine. Increasingly, cider is being viewed as a sociable drink that can be enjoyed either socially or with food.

COMPETITIVE LANDSCAPE

International brands maintain their lead

The leading brands in cider/perry in 2018 were imports of Hunter’s and Savanna Premium Dry Cider from South Africa. These brands are imported through local distributors such as Distell Group and Diageo.

Local players expand their local market footprint

The launch of Tusker Cider by East African Breweries in 2016 was supported by aggressive marketing and hybrid marketing campaigns and promotions through television, in-store posters, banners and billboards, which increased its penetration in the market. The company’s well-designed distribution system and strong brand name ensured easy market penetration, whilst its relatively low unit price, with one bottle retailing between KES180 in low-end retail outlets and KES220 in high-end retail outlets, ensures affordability across all different consumer segments.

Innovation is likely to promote a “hard cider” culture

Most consumers in Kenya drink beer or spirits. It is only expected to be a matter of time before consumers demand “hard cider”, which is cider combined with spirits.

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