Kenyan drinks group African Originals has eyes on further expansion on the continent after entering Uganda with the launch of a range of ciders.
The cider, spirits and soft drinks business is teaming up with Vicland Distributors Uganda to sell its cider in the country’s off- and on-trade.
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Alex Chappatte, founder and CEO of African Originals, said she believes the business can become “a truly African brand”.
“Expanding into Uganda is a strategic step in establishing our presence across east Africa,” Chappatte told Just Drinks.
African Originals said demand for “premium” cider is forecast to grow more quickly than for beer “across many African countries”.
Chappatte said premium cider “is defined by authenticity, craftsmanship, and the quality of ingredients – and it’s precisely this segment where we see the greatest opportunity”.
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By GlobalDataShe added: “Our next step is to grow our footprint in east Africa through Tanzania, where we see strong alignment with our product and brand. Beyond that, we are actively exploring opportunities across sub-Saharan Africa.
“There is still very limited choice in the cider category across the region, which presents a significant opportunity to introduce our premium range to a wider audience of consumers seeking something new.”
African Originals’ cider is made at the company’s facility in Baba Dogo in Nairobi, where all elements of production, from chopping and pressing to blending and infusing, are handled in-house.
“What sets us apart from mainstream ciders is this hands-on, craft approach. It’s a product made with care, by a team of 150 Kenyans and just one non-Kenyan,” Chappatte said.
In Uganda, African Originals is targeting Kampala, the country’s capital. It is also exploring taking the products to Jinja, a city in Uganda’s east.
“There are several encouraging signs in the Ugandan market that give us confidence in the potential success of our cider range,” Chappatte said. “Uganda shares a border with Kenya and consumers have a similar palate and appetite for our style of beverages. There is currently limited competition and choice in the market due to high import taxes, creating a clear opportunity for a differentiated offering like ours.”
She added: “More broadly, the alcoholic beverages sector in Uganda is expected to grow significantly – by approximately $3.3bn between 2024 and 2029 – with a strong CAGR of 10.2%, fuelled by urbanisation and a growing middle class.”
According to World Bank data cited by the company, Uganda’s urban population is expected to rise from around 13 million today to 53 million by 2065.
Chappatte said: “All of this creates a favourable environment for premium cider to thrive. Currently, there is very limited choice in the cider category, with only Tusker Cider and Savanna Dry available. This creates a clear gap in the market for a high-quality, differentiated product like ours.”
In September, African Originals, founded in 2018, raised $2m for expansion.
Outside Africa, the company is also working to expand its footprint in markets that have cultural ties with Kenya, including the UK, Canada and Australia.
African Originals is privately owned, with shareholders including Chappatte, Phoenix Beverages, Amaya Capital, Darshan Chandaria and Perivoli Innovations.
Over the past two years, the company’s annual revenue has climbed by 200% to reach $5m. It is aiming for $50m in revenue within five years, driven by regional expansion and growing demand for premium beverages, Chappatte added.
