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November 9, 2009
Business Report
Written By Ann Crotty
The Tanzanian competition authorities are investigating allegations of anti-competitive behaviour against SABMiller's Tanzania Breweries Limited (TBL).
The allegations have been made by Serengeti Breweries Limited (SBL), which is the global beer group's only competitor in Tanzania.
On Friday Godfrey Mkocha, the director-general of Tanzania's Fair Competition Commission (FCC) said claims that TBL had resorted to anti-competitive tactics were under investigation by his office.
The referral to the FCC is the latest move in a battle for the east African beer market that began four months ago. The battle has been fought not only in the streets of Dar Es Salaam, but in the courts of London as well as, briefly, in the parliament of Tanzania.
The final outcome is expected to involve a dramatic realignment of the players that dominate not only the beer market in Tanzania, but also in neighbouring Kenya.
SBL, which is owned and managed by Tanzanians, succeeded in growing its share of the local beer market from just 4 percent in 2002 to a high of 17 percent last year.
In the past 12 months it has lost an estimated 2 percent market share to TBL, which dominates the market with an 85 percent share. So impressive was SBL's performance that Castel, a major player in the African drinks market with an array of Africa-based joint venture agreements with SABMiller, entered into a series of discussions aimed at acquiring a stake in SBL.
However, in the light of the extensive market share arrangements that existed between Castel and SABMiller it was decided that SABMiller, rather than Castel, would pursue a tie-up with SBL.
Business Report
Written By Ann Crotty
The Tanzanian competition authorities are investigating allegations of anti-competitive behaviour against SABMiller's Tanzania Breweries Limited (TBL).
The allegations have been made by Serengeti Breweries Limited (SBL), which is the global beer group's only competitor in Tanzania.
On Friday Godfrey Mkocha, the director-general of Tanzania's Fair Competition Commission (FCC) said claims that TBL had resorted to anti-competitive tactics were under investigation by his office.
The referral to the FCC is the latest move in a battle for the east African beer market that began four months ago. The battle has been fought not only in the streets of Dar Es Salaam, but in the courts of London as well as, briefly, in the parliament of Tanzania.
The final outcome is expected to involve a dramatic realignment of the players that dominate not only the beer market in Tanzania, but also in neighbouring Kenya.
SBL, which is owned and managed by Tanzanians, succeeded in growing its share of the local beer market from just 4 percent in 2002 to a high of 17 percent last year.
In the past 12 months it has lost an estimated 2 percent market share to TBL, which dominates the market with an 85 percent share. So impressive was SBL's performance that Castel, a major player in the African drinks market with an array of Africa-based joint venture agreements with SABMiller, entered into a series of discussions aimed at acquiring a stake in SBL.
However, in the light of the extensive market share arrangements that existed between Castel and SABMiller it was decided that SABMiller, rather than Castel, would pursue a tie-up with SBL.
