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ELENI GIOKOS: Nestled in the northwest of Nairobi,
within a glass, steel-columned building,
it's a plan that has been fermenting for a while.
Tabitha, we're in your newly-expanded area.
This cost $50 million.
This is Keroche Breweries, home of Summit beer,
where, through the roaring sounds of machines humming
and glass bottles clinking, this beer-maker
is tapping into Kenya's lucrative alcohol business.
TABITHA KARANJA: So, my job now is to make sure that I can
turn this liquid into money.
ELENI GIOKOS: Tabitha Karanja is the CEO
of Keroche Breweries, which she founded with her husband
nearly 20 years ago.
Despite not having a background in the industry,
Karanja says she recognized that a part of the market
was neglected.
TABITHA KARANJA: [inaudible] mostly was
considered in the lower market.
So, we came up with [inaudible] vodka.
And then we have our beers now.
We have two only, but the machines that you see here
can produce [inaudible] brands.
ELENI GIOKOS: In Kenya, 22.8% of men and 9.6% of women
drink, according to the World Health Organization.
To serve this thirsty population,
Karanja says she got a $50 million
loan from Barclays in 2015 to expand its production
levels from 10 million liters of beer per year
to 110 million liters.
TABITHA KARANJA: We knew we did ten-fold
of whatever we had done.
We had enough-- we had the market
to distribute this market.
And because of-- the reason for this
is because the beer is naturally brewed,
and is the first one to be done in this country
that has no sugar added.
So, giving a choice to the people, that was more premium.
ELENI GIOKOS: But even with Keroche Breweries' expansion,
it only controls 2% of Kenya's beer market.
There's one company leading the pack by far.
East African Breweries Limited, which
is part of the multinational alcohol beverage company
Diageo, has been in the country for 94 years,
and has 71% market share.
ANDREW COWAN: EABL is a really important contributor
to the Kenyan environment.
We also have over 100 distributors,
and we're the second largest contributor
to the Kenyan treasury.
ELENI GIOKOS: Gaining that kind of growth wasn't easy.
EABL survived a beer war in Kenya
during the late 1990s, which led to the exit
of its main rival, SABMiller.
Today, the company's Tusker brand is one of the most
popular beers in East Africa.
ANDREW COWAN: All this competition means
is that you've got to be better at giving consumers what they
desire than the competition.
And therefore, it means we focus on who matters
most, which is the consumers.
ELENI GIOKOS: Now, Keroche Breweries hopes to become
a formidable competitor.
TABITHA KARANJA: When we compete now fairly into the market,
have no fear.
Our beer [inaudible] the market with the quality of my product.
ELENI GIOKOS: And international brewers
are also entering the field.
Where are you selling the most at the moment?
DANIEL MUNENE: The place I'm selling most is Nairobi.
ELENI GIOKOS: Daniel Munene is the Kenya distributor
for United Dutch Breweries.
It is the third largest brewery in the Netherlands.
Its best-seller is Atlas, which has a higher alcohol
content than most local beers.
DANIEL MUNENE: 12% is serving in most pubs
at 200 Kenya shillings, which is about $2.
Instead of spending about 600 shillings, you only spend 200.
So, you target those people who want to drink responsibly,
who do not have a lot of money in the pocket.
ELENI GIOKOS: UDB now imports 3,500 cans of beer to Kenya
each month.
DANIEL MUNENE: If we increase the price,
you look at other competitors.
ELENI GIOKOS: As new players enter the market,
the CEO of EABL says they will expand the company's
signature brand in the future to continue attracting consumers.
ANDREW COWAN: I think we'll have a very, very healthy broader
Tusker trademark.
I think we will champion interesting serves of spirits.
We will champion a cocktail culture.
ELENI GIOKOS: And Karanja has similar plans.
So, you want to go-- you want to expand in East Africa.
What is your business gonna look like in 10 years from now?
TABITHA KARANJA: 10 years from now, I see myself,
my beer, the whole of Africa.
ELENI GIOKOS: The whole of Africa.
TABITHA KARANJA: [inaudible] yes.
ELENI GIOKOS: So, in South Africa
I'll be able to buy Summit beer.
TABITHA KARANJA: Yeah, yeah, you'll
be able to buy Summit beer.
ELENI GIOKOS: I look forward to that.
Eleni Giokos, CNN, Nairobi.
ANDREW COWAN: Drink it chilled.
It's really great chilled.
Made of real apples.
ELENI GIOKOS: When we return, the CEO
of East Africa Breweries tells me more about the company's
success in Kenya.
Don't go away.
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