Mauritius-based Phoenix Beverages Ltd. (PBL) has received approval from the Competition Authority of Kenya (CAK) to acquire a 28.15% stake in African Originals.
According to CAK, the acquisition is unlikely to affect competition significantly.
“This approval has been granted on the finding that the transaction is unlikely to negatively impact competition in the market for manufacture, processing, distribution, and sale of alcoholic ciders, alcoholic spirits, and non-alcoholic ready-to-drink (NARTD) beverages, nor elicit negative public interest concerns—the two key considerations during merger analysis,” said CAK.
Markets Shares in the Alcoholic Cider Market (2020-2022)
| Entity/Brand | 2020 (Market Share %) | 2021 (Market share%) | 2022 (Market share%) |
Average (Market share%)
|
| EABL/Tusker Cider | 78 | 81 | 79 | 79.33 |
| KWAL/Savanna Cider | 3 | 5 | 7 | 5 |
| KWAL/Hunters | 0.3 | 3 | 5 | 2.77 |
| Savannah Brands/KO Cider | 0.003 | 0.5 | 1.5 | 0.67 |
| Others | 18.697 | 10.5 | 7.5 | 12.23 |
| Total | 100 | 89.5 | 100 | 100 |
Despite having a minority stake, PBL will gain influence over budget, plans, and executive appointments.
African Originals, owner of the Kenya Originals brand, has seen a consistent market share increase since its 2019 launch.
African Originals controls an entity in Kenya, Savannah Brands Company Limited, that manufactures, processes, distributes and sells alcoholic and non-alcoholic beverages, including Kenyan Originals (KO) Alcoholic Fruit Cider, Kenyan Originals Gin, and Kenyan Originals Iced Tea and Tonic.
IBL, the parent company of PBL, seeks to replicate its success in Kenyan retail with Naivas but acknowledges the challenge in the established beverage market.
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