EABL eyes carton packed beers to lift Covid-19 sales

East African Breweries Limited #ticker:EABL (EABL) is banking on new model of packaging bottled alcohol to allow customers buy in bulk and consume from home after closure of bars to contain Covid-19 spread

The beer-maker has started packaging its bottled beer brands in carton packs of six to allow customers buy as take-away and return bottles once they finish consuming.

Customers will, however, be required to part with Sh17 as deposit per bottle or a total of Sh408 for a carton of 24 bottles.

EABL said the shift from use of crates will make it more convenience for customers given that joints such as bars are closed and consumption within restaurants banned.

“We are introducing a new pack format for ease of home consumption. We are using packs of six in a carton instead of the shopper having to carry loose bottles,” the brewer said in an email response to the Business Daily.

“The packaging is cartons of 24 bottles and each carton has four packs of six. As soon as they are through with consuming the product they have bought, they need to return the empties.”

This comes on the back of EABL net earnings plunging to six-year low following closure of bars and restaurants in March, after Kenya reported Covid-19 cases.

Net profit declined by 39 percent to Sh7 billion for the year ended June as net sales for the second half the year dipped by nearly a third due to disrupted supply chains.

The firm said the new packaged beer will be available in all off-trade outlets such as supermarkets, wines and spirit shops and convenience stores.

EABL is banking on this new move to reach its customers given that bars remain closed. But there have been concerns that home-consumption has exposed underage children to alcohol.