INDUSTRY REPORTS PUBLICATIONS DATA FEED SERVICES WOWEB CONTACT US
Item added to your cart
The Beverages Industry in Ethiopia
BY Carole Veitch
Ethiopia
28 November 2016
R 2 040.00 (ZAR)  
estimated $ 145.50 (USD) *
Buy Now

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.


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.


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