The Ugandan newspaper, The Monitor, revealed that market loyalty through single products, for brewers in Uganda is fast becoming a thing of the past.
The East African market which typically shuffles between a couple of beverage choices has now developed a craving for other alcohol options, forcing brewers to adjust to a market where the tastes of its customers are ever-changing.
Coupled with the economic situation in the country that is forcing people to cut back on lifestyle choices, the players in this market are currently facing challenges they are not accustomed to.
The Ugandan alcohol industry, which has been controlled by two European giants for the longest time, now has smaller competitors manufacturing spirits and wines aimed at young customers, resulting in severe rivalry.
The Commercial Director at Uganda Breweries Limited, a subsidiary of East African Breweries Limited (EABL), Emmy Hashakimana, explained; “We have seen a growing preference for drinking choices driven by different occasions.
For example, some people choose to drink Tusker Lite on Monday because they’ve got a busy day ahead but will settle for a Johnny Walker on Friday while hanging out with friends. The same person will drink Baileys on Saturday evening while hanging out with a special friend.
We allocated more than Ush20 billion ($5 million) for advertising activities this year.”
While the problem has been noticed, there has been little action taken to this effect, Emmanuel Njuki, Corporate Affairs Manager at Nile Breweries Limited, stated; “We have not done any studies on changing consumer tastes, but we have noticed new behavioral traits through social observation.”
Growth for Ugandan Breweries
Uganda Breweries Limited, for example, increased its total sales revenues by 7% to Ush384 billion ($102.6 million) at the end of June 2024 as compared to the first six months of 2023.
According to business records, the firm’s total costs climbed by 8% to Ush293 billion ($78 million) by the end of June 2024, while earnings before tax increased by 5% to Ush91 billion ($24 million) in the same time.
