MK254
JF-Expert Member
- May 11, 2013
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Kenya Wines Agencies Limited (Kwal) will start local manufacturing of most of all imported brands after acquiring Sh1.1 billion property in Kiambu.
The strategy shift follows supply constraints of its wines and spirits brands in 2020 due to the Covid pandemic that led to an increase in shipping days from one to three months.
The manufacturing which will see Kwal source raw materials, bottles, and labels locally, will be carried out at the factory undergoing construction at Tatu City. Its completion is expected by August.
“With Covid-19, we saw a lot of delays at the port of Durban that impacted the lead times between us and South Africa. We had to write up some of the products because they had almost expired by the time they got here,” said Kwal managing director Lina Githuka.
“The positive aspect of that it forced us to look at our supply chain, with the objective of making it more agile and more reliable.”
Kwal is majority-owned by South Africa’s beverage firm Distell Group with a 55 percent stake. The Kenyan government owns 42.65 percent through the Industrial and Commercial Development Corporation (ICDC).
Its categories of products are wines, spirits and ready-to-drink juices. Most of the brands are imported with others like Caprice Wine and Cellar Cask bought in bulk, blended and packaged in Kenya.
Under the localisation plan, wine brands such as 4th Street, Drostdy-Hof and alter wine used in churches, and spirits including Viceroy brands, Amarula, Scottish Leader and Cruz Vodka will be processed and packaged at the Tatu City factory.
The localisation will, however not include premium wines such as Nederburg and Durbanville Hills that are bottled and housed in South African vineyards.
The plan will require heavy investment in machines, supplier development and ratification from brands' brewers in order to produce to global standards.
Kwal is already producing and packaging Hunters brand and will in three weeks begin manufacturing the Savannah Dry brand.
“For us to be able to manufacture locally, we have to demonstrate that we can manufacture to global standards. So it goes through a very rigorous certification process that enables you to be certified,” said Ms Githuka.
Localisation is expected to increase competitiveness through pricing and make the firm more profitable.
Source: Business Daily Africa
The strategy shift follows supply constraints of its wines and spirits brands in 2020 due to the Covid pandemic that led to an increase in shipping days from one to three months.
The manufacturing which will see Kwal source raw materials, bottles, and labels locally, will be carried out at the factory undergoing construction at Tatu City. Its completion is expected by August.
“With Covid-19, we saw a lot of delays at the port of Durban that impacted the lead times between us and South Africa. We had to write up some of the products because they had almost expired by the time they got here,” said Kwal managing director Lina Githuka.
“The positive aspect of that it forced us to look at our supply chain, with the objective of making it more agile and more reliable.”
Kwal is majority-owned by South Africa’s beverage firm Distell Group with a 55 percent stake. The Kenyan government owns 42.65 percent through the Industrial and Commercial Development Corporation (ICDC).
Its categories of products are wines, spirits and ready-to-drink juices. Most of the brands are imported with others like Caprice Wine and Cellar Cask bought in bulk, blended and packaged in Kenya.
Under the localisation plan, wine brands such as 4th Street, Drostdy-Hof and alter wine used in churches, and spirits including Viceroy brands, Amarula, Scottish Leader and Cruz Vodka will be processed and packaged at the Tatu City factory.
The localisation will, however not include premium wines such as Nederburg and Durbanville Hills that are bottled and housed in South African vineyards.
The plan will require heavy investment in machines, supplier development and ratification from brands' brewers in order to produce to global standards.
Kwal is already producing and packaging Hunters brand and will in three weeks begin manufacturing the Savannah Dry brand.
“For us to be able to manufacture locally, we have to demonstrate that we can manufacture to global standards. So it goes through a very rigorous certification process that enables you to be certified,” said Ms Githuka.
Localisation is expected to increase competitiveness through pricing and make the firm more profitable.
Source: Business Daily Africa
