Kenya high on gin pushed up British multinational Diageo sales to 5 per cent of total income last year as the country binged on the spirit while cooped up to weather Covid-19 pandemic.
Diageo said gin sales grew 14 per cent to make up 5 per cent of its total sales globally driven by sales in Kenya.
The Kenyan market grew 11 per cent, with strong spirits growth, particularly in mainstream gin, and slower beer growth due to on-trade restrictions.
The firm said it changed its delivery models following lockdowns and closure of bars and restaurants by betting big on boda boda deliveries.
“Gin grew to 5 per cent of Diageo’s net sales and grew 14 per cent across all regions with strong double-digit growth in Africa and Latin America and Caribbean,” Diageo said in a regulatory filing at the US Securities Exchange Commission.
“Growth in Africa was mainly driven by Gilbey’s in Kenya and broad-based growth of Gordon’s across the region,” the company noted.
In Kenya and Uganda, consumers are now able to order through easy-to-use apps to ensure safe delivery of our brands to their doorstep via digitally enabled ‘boda boda’ motorbike delivery companies, the company said.
Growth in Latin America and Caribbean was mainly driven by growth of Tanqueray and Gordon’s in Brazil.
Sales uptick in Europe was mainly driven by Gordon’s and Tanqueray in Great Britain and Tanqueray in Northern Europe.
The firm said it has developed route to consumer approach through multiple channels while continuing to develop their owned e-commerce channels and capabilities.
They expanded the availability of TheBar.com to Colombia and Malts.com to Germany an also launched Diageo Rare & Exceptional in Singapore and Australia and Party Central in Kenya and Uganda.
These help consumers grow their understanding and knowledge of Diageo’s brands and help them find the right drink for the right occasion.
In East Africa, Covid-19-related closures of neighbourhood bars and restaurants meant they needed new, fast and safe ways of getting our products to consumers hence the choice of boda boda and available e-commerce applications on mobile phones.