Uganda Breweries Limited (UBL) is set to enhance its presence both regionally and internationally with a fresh array of product offerings. Over the past decade, UBL has invested more than sh280b in expanding its capacity and advancing sustainability.
These investments include a modern glass distillery, an advanced bottling line and the production of high-quality neutral spirits, all while prioritising local sourcing of raw materials. “At UBL, innovation knows no bounds,” said Andrew Kilonzo, UBL’s managing director. “Last year, we achieved a 12% net sales growth. To keep our products affordable, we are leveraging local raw materials such as sorghum, pineapples, cassava, ginger and maize.”
“We’re excited to introduce new Tequila brands, including activations led by Don Julio, Gold Reserve and Singleton, alongside our world-class lagers and spirits. Our efforts are also supporting over 50,000 local farmers across the country.” Kilonzo made the revelation during the company’s annual media day on Monday at the Luzira plant in Kampala.
He emphasised how UBL’s strategy aligns with the Government’s Parish Development Model, which focuses on empowering citizens and shifting from imports to exports. UBL has been a crucial partner in supporting the Government’s strategy for poverty alleviation through agricultural modernisation in Uganda.
Through its Farm for Successprogramme, UBL invests an annual average of about sh32b in farming communities and supply value chains, sourcing locally grown raw materials (excluding sugar) for brewing operations. This initiative results in reduced foreign exchange expenditure, fosters a robust market for local beer ingredients, increases tax remittances to the Uganda Revenue Authority (URA), alleviates poverty among farmers and instils a sense of pride and ownership in the community.
“Last year, we invested sh43b in a new production line, which boosted our capacity to 30,000 330ml bottles per hour and 25,000 500ml bottles per hour. This line also employs over 25 people, 75% of whom are women,” Kilonzo stated. Looking ahead, UBL plans to introduce apple and cider products, with development already underway. This new venture presents an opportunity for farmers to cultivate the fruits UBL will use in brewing.
Although cider has traditionally been viewed as an alternative to beer, its popularity is rising in markets like the US, where it has grown ninefold. Uganda’s market is now ripe for this innovation. The cider production process, already a notable tourism attraction in South Africa and Switzerland, is poised to make its mark in Uganda. “UBL’s rapid growth in the industry has sparked significant interest and we have the resources and expertise to turn that interest into tangible success. The rise of ciders reflects millennials’ enthusiasm for new and diverse experiences,” said Kilonzo.
Consumer trends KNOWN
Emmy Hashakimana, UBL’s marketing and innovations director, emphasised UBL’s understanding of consumer trends, noting that people seek variety based on different occasions — whether it’s a casual Monday evening, a weekend beach outing or a celebratory event.
“Our Uganda Waragi Lemon/Ginger is performing exceptionally well in the competitive market. We’re also introducing Bell Citrus, a classic since the 1950s, along with new sweet flavours to cater to our diverse clientele,” Hakishmana explained.
Recently, UBL also launched a new product in the Ugandan market — Rockshore Tropical Lager.
Challenges
Andrew Kilonzo, UBL’s managing director, addressed the challenges facing the industry, calling for more equitable regulatory practices. He noted that despite UBL’s investment of over $20m (sh74b) in digital stamps, illicit brewers continue to operate without them, undermining market integrity and depriving the Government of substantial revenue.
“This situation not only endangers consumers, but also results in a loss of approximately sh458m in taxes to government,” Kilonzo noted.