volume of beer and spirits sold fell 10 percent
Did keroche industries contribute to the above?

@VituVingiSana, sale of spirits down 50%? That's concerning - where did the customers go or what did they switch to?

On another note maybe they should tread carefully vis-a-viz the whole SABL issue. Now see that EABL may be more vulnerable, than I thought, to a full blown out war.

Press release said 1Q sales of spirits down 50%. I have reduced my intake of spirits... & when possible I get them duty free (often non-EABL) thru friends flying in...

I humbly submit that the reduced sales are a result of the death of the 'social drinker'. This is the working class man/woman who will join his/her friends on a friday or over the weekend for a drink, catch up or rave. They typicaly take tusker malt/ smir ice or redds. They are generous and will buy a round or 2 for the pals. Now since booze hit 150-200 in places where they visit, boozing became quite expensive. For them booze is not No. 1 Priority neither are they willing to bend backwards to take senator. So they quit booze. EABL can rediscover 2x growth if they introduce cheaper but trendy products for this class.

In Kenya and more so in the market you are alluding to, products are considered trendy of they are more expensive than other products. So this would be a catch 22 situation.I dont think there is significant opening for growth in the top end market. Me thinks the future of EABL top line growth lies in the 40% un-penetrated regions in Kenya that Adetu spoke of during the press interview. Coming to think of it, how comes senator has not penetrated 40% of Kenya, more than 6 years since its launch? Mobile phone companies, invest more in building networks in rural areas than EABL does in establishing distribution presence. Adetu should address this!

Another aspect to the story is the vindication of the Laffer Curve. Due to pornongraphic taxes on spirits the government had to back peddle as the taxes were milking th cash cow dry.
I love economics.

Tehehe. Whats the point of sustaining this gimmick, or will it pay in the long run?

Problem remains taxes... 65% of supermarket price goes to taxes...

@gathinga,i think if keroche persists,profits will definately start trickling in once they raise the price of summit in the near future..for now they have to try and convert as many drinkers as possible..

@2012
65% tax vs innovation? The loser is Innovation coz it can't beat 65% tax...
Only option EABL has is asking the government to enforce the 'law' against untaxed brews...

Even if EABL made a beer for 10/- the taxes would add a MINIMUM of 40/- = 50/-

An inefficient but untaxed busaa sellers can compete coz even if costs 20/- (2x EABL's cost)... after taxes = 20/-

I bet you that keroche sells part of its production on the untaxed market... EABL, being a listed firm, cannot do so as easily...