Kenya: East African Breweries enhancing outreach for raw material for its Senator Keg low end beer brand

The resurgence of low end beer brand Senator Keg has seen East African Breweries Limited (EABL) enhance its outreach for sorghum and millet framers to provide the key ingredient for the beer, Citizen TV reported on August 24.

East African Malting (EAML), a subsidiary of EABL, has recruited 12,000 farmers from Kitui, Tharaka Nithi and Embu with plans to scale up production to 30,000 tons a year.

East Africa Malting General Manager Lawrence Maina said demand for Senator Keg has risen by 113 percent of the last one year necessitating the need to contract more farmers.

“EAML partnered with KCEP in order to enhance the value chain of sorghum and millet in the three counties of Eastern region. This initiative is aligned to EABL’s grow, feed and sell campaign, which encourages farmers to grow sorghum and millet for household consumption and sell the balance, for commercial use,” Mr Maina said.

The government introduced a 50 percent excise duty on beer made from sorghum in 2014, forcing EABL to cancel supply contracts with over 25 thousand farmers.

The excise duty was later scrapped in the 2015/16 budget.

Mr Maina said contracted farmers will sign forward contracts with the company ensuring they are supplied with seeds and other farm inputs, selling 60 to 70 percent of the harvest to EABL.

“Our buy in methodology will still continue to be forward contracting so that by the time they plant they know that the excess sorghum that they have will be sold to us,” he said.

East African Malting earlier in the month launched a similar initiative targeted at sorghum and millet farmers in Nyanza.

Kenya Breweries Limited (KBL) Managing Director Jane Karuku said the initiative will reinforce EABL’s sustainability strategy, deepening socio-economic benefits to the rural population.

“At KBL, we believe in growing value together for our business and communities. We are honored to be at the centre of this program that will potentially create and accelerate a robust supply chain, contributing to the establishment of a stable macro-economic environment steered by agriculture,” said Ms Karuku.

The increased supply will help EABL to meet the high demand for sorghum, occasioned by a revision of tax charge on Senator Keg whose subsequent price reduction has given new impetus to its uptake.

21 August, 2016