EAST AFRICAN BREWERIES LIMITED

EAST AFRICAN BREWERIES LIMITED

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Company Overview
East African Breweries Limited (EABL) is a Kenya-based holding company, whose subsidiaries are engaged in the brewing and marketing of alcohol beverages, glass containers, malt, and barley. The company, with registered head office located in Nairobi, Kenya, was incorporated in 1922 as Kenya Breweries, Ltd. In 1936, the company changed its name to East African Breweries Limited.
East African Breweries is East Africa’s leading branded alcohol beverage business and has an outstanding collection of beer and spirits brands. The company produces beer under Tusker, Pilsner, White Cap, Senator, Guinness, AllSopps, Smirnoff Ice, Bell Lager brand names. It also produces Malta Guinness, a non alcoholic energy drink and Waragi branded spirits. East African Breweries also produces barley for the domestic market as well as for exports. In addition, EABL distills and produces a range of spirit brands for the local and export markets, such as Smirnoff Vodka, Popov Vodka, Gilbey’s Gin, Chelsea Gin, Richot Brandy, Three Barrels Brandy, Leroux Brandy, Kenya Cane, Kane Extra, Kenya Gold Liqueur, Smirnoff Ice, and Smirnoff Black Ice, as well as imports a range of premium Diageo spirit brands for both the domestic and duty-free markets. The company’s products are marketed and sold in Kenya, Uganda, Tanzania, Ethiopia, Rwanda, Burundi, Eritrea, Seychelles, Mauritius, Zimbabwe, Zambia and Angola. Through its wholly-owned subsidiary, Central Glass Industries Limited, EABL also produces approximately 100 million glass containers in 73 different shapes and sizes, which include: alcoholic beverage bottles, carbonated soft drink bottles, health drink and squash bottles, pharmaceutical bottles, jars, and tumblers.
East African Breweries, a publicly quoted company, operates in Kenya, Uganda and Tanzania. Its shares are primarily listed on the Nairobi Stock Exchange, but is also cross-listed on the Uganda Securities Exchange and Dar-es-Salaam Stock Exchange. EABL is part of the UK-based, Diageo PLC, which is the largest multinational beer, wine and spirits company in the world.
Business Summary
The Company is a Kenya-based holding company, which manufactures branded alcoholic and non-alcoholic beverages. Along with its subsidiaries, the Company is involved in the marketing, brewing, manufacturing and selling of drinks, glass containers, malt and barley. Some of EABL’s core brands include Tusker, Pilsner, Bell Lager, Guinness, Malta Guinness, Alvaro, Uganda Waragi, Senator, Johnie Walker and Smirnoff Ice.
Description and history
East African Breweries Ltd is East Africa’s leading branded alcohol beverage business and has an outstanding collection of beer and spirits brands. With breweries, distilleries, support industries and a distribution network across the region, the group’s diversity is an important factor in delivering the highest quality brands to East African consumers and long-term value to East African investors. The Company is East Africa’s premium beverage Group dedicated to delivering world class beer to the market. EABL is the largest brewing Group in East Africa with an annual turnover of Kshs 26 Billion and it has the largest share of the beer industry in the region. The group employs more than 1600 people across the East Africa.

1922
Kenya Breweries Ltd is formally incorporated as a private company. The first Beer is brewed. The first batch delivered to the Stanley Hotel where it was opened to a mixed reaction.

1923
First annual general meeting of the company is held. First brewer, Mr. Spurrier is appointed. George Hurst, company founder, is killed in an elephant hunting accident.

1924
Ruaraka brewery gets a power line & Production rises to 20,000 gallons a month.
Pasteurization plant installed assuring the future success of the company.

1926
First dividend declared.

1929
Malted barley first used in the production process.

1931
First Bonus share issued.

1932
The idea of establishing Tanganyika Breweries is mooted.

1933
Tanganyika Breweries Limited is established.

1934
Kenya Breweries becomes a public company.

1935
Kenya Breweries acquires Tanganyika Breweries.

1936
Company name changed to East African Breweries Limited.

1937
A competitor in the form of Taylor’s Brewery opens in Nairobi.

1938
First brewing prize won in international competition.

1942
Malting plant adapted to use Kenya grown barley. Mr. H. A. Downing, one of the original Directors dies in England.

1943
Company buys more land for brewery development at Ruaraka and new offices in Nairobi.

1951
Mombasa brewery comes on stream.

1952
Mombasa brewery officially opened on 8th February by the Governor of Kenya Sir Evelyn Baring.

1954
Kenya breweries Listed in the Nairobi Stock Exchange.

1959
East African Breweries acquires financial holding in Uganda Breweries, Allsopp Pilsner Lager launched by Allsopp ( East Africa). Employee profit sharing schemeintroduced.

1960
First Africans Messrs. J M Muchura and J Thuo join the EABL Board.

1962
Merger completed with Allsopp ( East Africa) Ltd.
East African Breweries becomes a holding company and Kenya Breweries is re-established as the major trading company in the group, with controlling trading assets and liabilities for units in Nairobi and Mombasa.

1964
Equity interest is acquired in Kilimanjaro Brewery In Tanzania.

1965
Guiness East Africa Limited incorporated in Kenya. The company starts its own in house magazine called Tembo Times.

1966
Charles Hurst, Kenya Breweries founder dies in England.

1967
The company’s brewing activities in Tanzania are nationalized.

1969
Acquisition of City Brewery in Nairobi to save it from winding up.

1972
East African Breweries completes largest public share issue in Kenya’s history and raises the number of shareholders to more than 23,000. Uganda Breweries nationalized by Idi Amin. Technical Services Division established.

1973
Golden Jubilee celebrated. Vice President Daniel Arap Moi opens new Ruaraka headquarters.

1974
Master plan Kenya Limited incorporated as a subsidiary of Kenya Breweries Barley syrup plant, a first of its kind commissioned at Ruaraka.

1976
New Maltings plant phase1 is commissioned.

1977
The company’s brewing activities in Tanzania are nationalized.

1978
Maltings phase 2 Silos completed.

1982
Kisumu brewery commissioned.

1984
Guinness Stout Award is discontinued from the Kenyan market.

1985
Construction work on Central Glass Industries begins.

1986
Kenya breweries signs an agreement with a major United States beer distributor who would begin distributing Kenya Breweries products in the US.

1987
Central Glass Industries, Kenya Breweries subsidiary company produces the first bottle.
Guinness Stout Award is re-introduced in the Kenyan market.

1988
The name East African Breweries is dropped and the company reverts to its ld name Kenya Breweries Ltd. A new look and reduced Board of Directors comes on board.

1991
Phase 3 of the extension work to the Maltings plant in Industrial Area is completed.

1992
Whitecap Export is phased out from the market.
70th Anniversary Celebrations are held.
Kenya Breweries launches Kenbrew, a high quality gravity beer. The voluntary Early Retirement group leaves the company after a generous Golden Handshake, paving way for a leaner and more efficient company.

1995
Kenya breweries Tusker Malt lager, until then only sold in the export market, makes a comeback to Kenya.

1996
The company brews Citizen, the first beer from 100% non – malted barley.

1997
Kenya Breweries installs an ultra modern state of the art bottling line at Tusker Brewery.
Citizen Special lager is launched. Kenya Breweries celebrates its 75th Anniversary.

2000
Kenya Maltings Limited is incorporated as a separate company in the Group.

2000
EABL is named ‘The Most Respected Company in the East African Region’ in a survey conducted by PricewaterhouseCoopers & the Nation Media Group.

2001 – EABL is named ‘The Most Respected Company in the East African Region’ for the second year running.

2001 – Ms. Wanjiku Mugane, aged 38, is appointed the first woman to the board of directors – EABL.

2001 – The Shared Services Centre is set up to provide controlled data for accounting, human resource, procurement and production under a single roof further increasing the Group’s overall efficiency and effectiveness.

2002 – EABL signs license agreements with South African Breweries International and agrees terms for share exchanges in Kenya Breweries Limited and Tanzania Breweries Ltd. In the agreement SABI closed its brewing operation (Castle Breweries Kenya Limited) at Thika in Kenya as it retained its investment in Kenya by taking a 20% shareholding in Kenya Breweries, while EABL closed its Kibo Brewery in Moshi Tanzania and retained its investment in that country by acquiring a 20% shareholding in Tanzania Breweries Limited.

2002 – EABL shareholders authorized EABL to purchase the entire issued ordinary share capital of International Distillers Uganda Limited from Selviac Nederland B.V. at a cost of 300 million payable in cash. In addition to this they also gave approval for the purchase of 46.32% of the issued ordinary share capital from KWA Holdings EA Limited and First Chartered

December 2003 – KBL introduced a new lager brand by the name Senator, a brand birthed out of innovation and consumer insight.

December 2003 – The company also unveilled a new stylish bottle for one of its premium brands ‘Guinness’.


Incorporated as Kenya Breweries, Ltd

Business Line
Holding company, whose subsidiaries are engaged in the brewing and marketing of alcohol beverages, glass containers, malt, and barley
Subsidiary
KENYA BREWERIES LIMITED
Advisor
KPMG KENYA
IPO date
1/1/1972
US SIC Code
2082
Company Address
P.O. Box 30161
Corporate Center, Ruaraka
City province or state postal code
NAIROBI
Phone: +254 20 8563701
Fax: +254 20 8563054
Country address: KENYA
Website url: www.eabl.com

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