Diageo to Boost Spirits Business in Kenya as Tax Cuts Beer Sales
- EABL grew sales of distilled drinks by 26% in first half
- State raised excise on bottle beer 4 times in past 5 years
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East African Breweries Ltd. plans to boost its spirits business in Kenya and neighboring countries as higher duties reduce revenue from its bottled-beer business, Managing Director Andrew Cowan said.
The company is investing about $9 million in a new line of spirits that will serve countries including Rwanda, Uganda and Tanzania, Cowan said in an interview Friday in the capital, Nairobi. The unit of Diageo Plc, which owns a 50.02 percent stake, earlier reported a 28 percent drop in first-half income after an increase in Kenyan duties contributed to a 6.1 percent drop in revenue.