Report Coverage
The report on the Ethiopian beverages industry investigates the local beverages market, recent developments and factors influencing the success of the formal industry. The report profiles 16 companies including Moha, which with market share of approximately 52%, dominates Ethiopia’s multi-million dollar carbonated soft drinks market. Also profiled are BGI Ethiopia, the leading player in the beer brewing segment with annual production capacity of 3 million hectolitres and the country’s largest wine producer, Awash Winery Share Company.
The Manufacture, Wholesale and Retail of Beverages in Ethiopia
With a population of more than 102 million people, Ethiopia is the second most populous country in Africa and represents a largely untapped consumer market. There is growing demand for carbonated soft drinks, as well as bottled water, and although the majority of Ethiopians still drink home brewed beer, branded alcoholic beverages are becoming increasingly popular amongst upwardly mobile members of society. During the past five years foreign companies have made substantial investments in the Ethiopian beverages industry and several manufacturers have expanded their installed capacity in an effort to meet growing demand.
Opportunities and Challenges
Ethiopia has sustained robust economic growth and macroeconomic stability over the past decade, with real GDP growth averaging 10.8%. The Ethiopian government offers an enabling policy environment and competitive incentive packages to investors. These include export incentives, 100% exemption from payment of custom duty on imported capital goods, as well as exemption from income tax for new investors and for investors operating in specified regional areas. However, the International Monetary Fund (IMF) reports that the country’s growth trajectory slowed sharply during the past year, contracting from 10.2% during the 2014/15 fiscal year to 6.5% during 2015/16. This has largely been attributed to a crippling drought, coupled with weak international commodity prices, which caused Ethiopian export revenues to decline by more than US$139m. It is estimated that drought-related food aid provided to around 20 million people has cost the country approximately US$1.4bn. The economic impact of the current nationwide State of Emergency implemented in response to the outbreak of political violence is also cause for concern.
The Beverages Industry in Ethiopia
2016
Full Report
R 1 900.00(ZAR) estimated $101.46 (USD)*
Industry Overview
R 1 330.00(ZAR) estimated $ 71.02 (USD)*
Table of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Value Chain | 4 |
| 2.2. | Geographic Position | 6 |
| 3. | SIZE OF THE INDUSTRY | 8 |
| 4. | STATE OF THE INDUSTRY | 10 |
| 4.1. | Local | 10 |
| 4.1.1. | Corporate Actions | 15 |
| 4.1.2. | Regulations | 17 |
| 4.1.3. | Enterprise Development and Socio- Economic Development | 19 |
| 4.2. | Continental | 19 |
| 4.3. | International | 22 |
| 5. | INFLUENCING FACTORS | 26 |
| 5.1. | Economic Environment | 26 |
| 5.2. | Government Interventions | 27 |
| 5.3. | Socio-Political and Socio-Economic Environment | 27 |
| 5.4. | Socio-Cultural Environment | 28 |
| 5.5. | Rising Input Costs | 29 |
| 5.6. | Technology, Research and Development (R&D) and Innovation | 29 |
| 5.7. | Environmental Concerns | 31 |
| 5.8. | Labour | 32 |
| 5.9. | Cyclicality | 33 |
| 5.10. | Branding, Advertising and Marketing | 33 |
| 5.11. | Informal and Illegal Trade | 34 |
| 5.12. | Health and Safety Concerns | 34 |
| 6. | COMPETITION | 34 |
| 6.1. | Barriers to Entry | 36 |
| 7. | SWOT ANALYSIS | 36 |
| 8. | OUTLOOK | 37 |
| 9. | INDUSTRY ASSOCIATIONS AND ORGANISATIONS | 38 |
| 10. | REFERENCES | 39 |
| 10.1. | Publications | 39 |
| 10.2. | Websites | 40 |
| COMPANY PROFILES | 42 | |
| AWASH WINERY SHARE COMPANY | 42 | |
| BALE ZAF ALCOHOL & LIQUORS FACTORY PLC | 44 | |
| BGI ETHIOPIA PLC | 45 | |
| COCA-COLA BEVERAGES AFRICA (PTY) LTD | 47 | |
| DASHEN BREWERY S.C. | 49 | |
| DESTA ALCOHOL AND LIQUORS FACTORY PLC | 51 | |
| ETHIOPIAN TRADING ENTERPRISE | 52 | |
| FANTU SUPERMARKET | 54 | |
| HABESHA BREWERIES S.C. | 56 | |
| HEINEKEN BREWERIES S.C. | 57 | |
| META ABO BREWERY S.C. | 59 | |
| MOHA SOFT DRINKS INDUSTRY S.C. | 60 | |
| NATIONAL ALCOHOL AND LIQUOR FACTORY | 62 | |
| NOVIS PLC | 64 | |
| ORIGIN INVESTMENT PLC | 66 | |
| YES BRANDS FOOD & BEVERAGES PLC | 67 |
