New $45m Carlsberg brewery to be built in Kenya – its only one in Africa

Dec 11, 2019

Danish Brewing Company East Africa Limited (DBC) is set to build a new Sh4.6bn ($45m) Carlsberg brewery at the new Naivasha Industrial Park being built on the road between Nairobi and Nakuru. DBC acquired Carlsberg and Beam Suntory distributor King Beverage in August 2019.

DBC is a subsidiary of Bounty Global Management DWC LLC. In August it acquired King Beverage, a leading Kenyan alcoholic drinks distributor that was founded in 2014 and owned by Centum Investments, whose main shareholder is the Kenyan government. King Beverage currently distributes Carlsberg Group brands Carlsberg, Tuborg, Holsten, and Kronenbourg beers, as well as Somersby Cider. It also distributes Beam Suntory spirits brands including Jim Beam and Teacher whisky.

The new brewery is set to cost Sh4.6bn ($45m) and have a production capacity of 12-15 million cases of beer annually – equivalent to 1m to 1.2m hectolitres annually. For comparison, market leader East African Breweries Ltd has an annual capacity of 10.5m hectolitres.

Carlsberg has a very limited presence in Africa. In 2016 it sold its 59% share of Carlsberg Malawi Limited to Castel Group, which it had owned since 1968. In fact, Africa isn’t mentioned once in the company’s 2018 annual report – the company divides its universe into West Europe, Eastern Europe and Asia.

 

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