Surprisingly,the buying of the labels of two beers by Heineken could lead to the sector more competitive in terms of quality and price and would settle issues on privatization.this action also one part of privatization of state owned industries.
Aug 18th 2011, 8:47 by J.L. | NAIROBI
Source: The Economist
HUMANITARIAN disasters tend to have a reductive effect on reporting: misery comes to the fore and day-to-day life blurs out of focus. And yet there are always multiple realities. Take this week in Ethiopia, for instance. The Dutch brewer, Heineken, has agreed to buy out two of Ethiopia's state-owned beer labels for $163m. Under the terms of the deal, Heineken will take ownership of the Bedele and Harar beers. Bedele, which was developed by Czech brewers in the early 1990s, has a strong following in western Ethiopia. Harar is based in eastern Ethiopia (Baobab can vouch for Harar, especially when drunk in the magical city where it is brewed, preferably on expenses).
Buying up the labels is the first step. The next is for Heineken to spruce up the brands for Ethiopia's youthful population, increasing sales in the cities and breaking into the Kenyan, South Sudanese and Ugandan markets. The company says it also wants to work with the Ethiopian government to improve crop quality and productivity. Both Heineken and the Ethiopian government want to substitute imported malt with locally produced stuff. Ethiopians drink around four litres of beer per person per year. Kenyans drink 12 litres. South Africans chug down over 50 litres. So the bigger message, out of focus among stories of the famine, is one of economic growth. Even freighted with hunger and destitution, the Ethiopian economy is set to grow at 6% or more a year and the consumption of beer is set to rise at over 10% a year.
Cheers!!!!!!!!!!
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