In the past month, there have been two different reports in the East African Newspapers about the drop in profits that has been experienced by East African Breweries (Diageo) in Kenya who are also majority owners of Uganda Breweries in Uganda and Serengeti Breweries in Tanzania.
I feel like rejoicing, considering that Kenya is known as the “drinking nation”.
This may just show that there’s hope for Kenya if this trend continues. Uganda and Tanzania have been listed as having some the largest numbers of alcohol users in Africa and this may give a ray of hope that this behavior is on a downward trend.
However small the percentage drop in profits and sales is, I feel that there’s hope that East Africans are opting for healthy drinks instead of this poison that is spewed by such global corporations.
I also feel quite pensive for I know the Christmas holiday is approaching and these companies will put much more efforts in their marketing and promotions during the festive season in order to make up for this loss in the first half of the year.
For background information:
East African Breweries Limited is a big brewing company situated in East African that owns 100% of Kenya Breweries, 98.2% of Uganda Breweries, 100% of Central Glass – a glass manufacturer, 100% of Kenya Maltings and 46% of United Distillers and Vintners (Kenya) Limited, 100% of International Distilers Uganda, 100% EABL International (responsible for exporting), 100% of East African Maltings, 100% EABL Foundation and 51% of Serengeti Breweries limited.
The largest owner of East African Breweries Limited is Big Alcohol giant Diageo. Diageo is the world’s largest producer of spirits, headquartered in London, UK. Diageo is often involved in controversies:
1) In February 2009, it was reported in The Guardian that the company had restructured itself so as to avoid paying tax in the UK.
2) The National Puerto Rican Coalition plans to run a series of ads in New York City and Puerto Rico urging a boycott of Diageo-owned alcoholic drinks to protest the corporation’s production move of its Captain Morgan rum from Puerto Rico to the U.S. Virgin Islands, which will provide it with $2.7 billion in tax benefits over 30 years.