Competition heats up for beer market

• Traditionally, Brasseries et Limonaderies du Rwanda (Bralirwa), was the sole manufacturer and enjoyed a monopoly, until Brasseries des Mille Collines (BMC), producers of skol beer, opened a plant three years ago and East African Breweries (EABL) also decided to enter the Rwandan market.
• As a result of increasing competition in the beer market, Bralirwa is looking at other opportunities. The company is investing $41 million ($66,247) to expand production of soft drinks for both plants in Kigali and Gisenyi in Western Province.
• In the first half of this year, Bralirwa produced 788,000 hectolitres of both soft drinks and beer compared with 762,000 hectolitres produced during the same period last year. However, the company is not leaving anything to chance despite the increase in production.
• One of the factors that determines competition is the price of products and Bralirwa’s competitors are at par in terms of prices.
• Bralirwa, part of the Heineken group, seeks to continue improving the quality of its products in order to maintain its dominance.
• BMC skol, which has a manufacturing plant in Rwanda, is also investing in expansion plans. Currently BMC skol produces 100,000 hectolitres annually.

Beer companies are jostling for a share of Rwanda’s lucrative market.

Players in the brewery sector have embarked on aggressive expansion plans in a bid to increase their market share. The beer market is steadily becoming a major contributor to the country’s economic growth.

Traditionally, Brasseries et Limonaderies du Rwanda (Bralirwa), was the sole manufacturer and enjoyed a monopoly, until Brasseries des Mille Collines (BMC), producers of skol beer, opened a plant three years ago and East African Breweries (EABL) also decided to enter the Rwandan market.

Rwanda also imports beer from Burundi, particularly the popular Amstel.

READ: Bralirwa, Bank of Kigali results boost trading activity at RSE

As a result of increasing competition in the beer market, Bralirwa is looking at other opportunities. The company is investing $41 million ($66,247) to expand production of soft drinks for both plants in Kigali and Gisenyi in Western Province.

“We are increasing production to satisfy rising demand in the market,” said Jonathan Hall, managing director of Bralirwa.

Bralirwa is not facing any serious competition in the soft drinks market, but with the entry of BMC and imports from EABL, the company is feeling the pinch in the beer market and was recently accused by rivals of unfair competition and sabotage.

“Competition is good for business because it allows for innovation and delivery of quality products to our clients,” added Mr Hall.

Increased production

In the first half of this year, Bralirwa produced 788,000 hectolitres of both soft drinks and beer compared with 762,000 hectolitres produced during the same period last year. However, the company is not leaving anything to chance despite the increase in production.

READ: Bralirwa posts an increase in profit

One of the factors that determines competition is the price of products and Bralirwa’s competitors are at par in terms of prices.

Skol’s 75 centilitres (cl) bottle goes for Rwf900 ($1.5) while the same size of their new brand “skol Gatanu” costs Rwf600 ($1).

Bralirwa prices its 72cl Primus at Rwf700 (over $1) while a 65cl goes for Rwf900 ($1.5) while Guinness and Amstel cost Rwf600 and Rwf550 respectively.