Presence Of Major Players Boosts Beer Industry Competitiveness
Uganda's beer industry is expected to grow strongly over the next few years. Unlike the beer sector in Kenya, East Africa's largest economy, Uganda's beer market is particularly competitive, with global drinks firms Diageo and SABMiller both well established. SABMiller's market share is thought to be close to 60%, and its output has grown by 75% between 2006 and 2010 . We see a lot of room for growth as more consumers trade up to commercial beer and as more is spent on beer as incomes grow.
Like so many countries in Africa, there is a widespread informal alcohol industry in Uganda, which can make it difficult to gauge the overall size of the alcohol drinks industry. In the case of beer, Diageo and SABMiller have been making a concerted effort to provide an alternative to the informal sector with some of their competitively priced brands.
To 201 7 , we are forecasting beer volume sales in Uganda to grow at a compound annual rate of 9.9%, which will be very supportive of the ongoing expansionary initiatives Diageo and SABMiller are pursuing. In Diageo's case, it owns East African Breweries Limited (EABL). The firm has had a lot of exposure to Kenya, where growth in beer has been not been on the same scale as in Tanzania and Uganda over the past few years. Therefore, Uganda is very important to EABL; so is Tanzania, where Diageo is now going it alone having previously been locked into a regional joint venture with SABMiller for a number of years. With East Africa increasingly integrated economically, there are likely to be good opportunities to export to other regional markets.
|Rising Incomes A Key Fundamental Growth Driver In Commercial Beer|
|Uganda - GDP Per Capita (US$) & Private Final Consumption (% chg y-o-y)|