Rwandan beer consumers should consider forking out extra francs to buy a Senator Beer.
The beer brand that has steadily gained popularity across major parts of Rwanda, is produced by the East African Breweries Ltd, has hinted that it may soon be affected by expected scarcity which is likely to push the retail price higher.
Kenya Breweries Limited Managing Director, Jane Karuku, on Wednesday told the press in Nairobi that the company anticipates a drop in sales due to forthcoming long drought and inflation.
“Heightened inflationary pressures may depress sales to levels similar to those seen in 2017,” Kakuru said.
“Our fear is that if it doesn’t rain and the disposable income is challenged, we will find the bottom of the pyramid hurting more because the wallet share is getting competition,” Kakuru noted.
Senator Keg, a value brand, targets the bottom of the pyramid and may be the most hit.
In Rwanda, a bottle of senator is sold at Frw600, but its quantity is way higher than other local beers sold at the same price.
In Kenya, the senator brand was introduced to win consumers from illicit brew and its gross sales recovered by 12 percent to Sh76.4 billion in the half year ended December last year.
Lawrence Maina, the General Manager at East Africa Maltings, a subsidiary of EABL, said that barley production may be affected.
He said the company has set up a risk team to mitigate against drought.
“The big issue could be in the barley sector, which is very unique as it is grown in areas of high altitude and heavy rains,” said Mr Maina.