fbpx
Connect with us

Leader board

Local Business

Beer Wars: Uganda Breweries vs Nile breweries, who will take the day?

Published

on

Win lots of cash with ForteBet Click here for more

beer

By Moses Kaketo

Uganda Breweries Limited (UBL) was not so long ago, the leading brewer of alcoholic beverages in Uganda. Its growth was so exponential that it caught the eye of East African Breweries Limited, who then acquired it in a friendly takeover. That growth has since changed following more robust competitive strategies adopted by its major competitors. The company has experienced steady decrease in their market share.

In response, several changes have taken place at Uganda Breweries Limited (UBL) in the recent past as the company struggles to regain the lost glories.

Not so long ago in 2014, UBL (a subsidiary of #Diageo) sacked the entire commercial department comprising of sales, marketing, distribution and trade. About 70 employees where affected. The company reportedly asked those who wished to retain their jobs to reapply. More changes have since been taken place in all areas of human resource, marketing and distribution, branding and product innovations. These changes were intended to align the structure and systems to the strategy, as well as eliminate none core tasks and personnel.

Strategic moves

In the latest changes, UBL launched a new pocket size bottle for Senator Stout. The 330ml bottle is selling at Ugx 1,500 and now available in supermarkets. Last year, Nile Breweries, arguably UBL’s biggest competitor announced a price reduction for their Eagle beer after it noticed it was wrongly priced. “When we keep our brands affordable, beer volumes grow,” said NBL Managing Director Greg Metcalf after announcement of reduction in price.

UBL’s Senator was reportedly riding on this to get market share. Analysts say, the new packaging aims to fight off Nile Breweries Eagle beer which commands the beer market in Uganda and accounts for 60% of Nile Breweries revenue. The new packaging also seeks to attract the low end consumers who command the beer industry in Uganda. It’s no wonder Nile breweries introduced Chibuku, priced at Ugx. 1,000 for western Uganda, a region that used to consume local brew.

Unveiling the company’s half year results last year, EABL Group Director Charles Ireland noted: “I am very pleased with our performance in Uganda that yielded a net sales growth of 13%. Our price mix interventions and effective launch of Reserve brands played a key part in securing this positive result, along with a successful new Bell Lager campaign and a very strong performance on Uganda Waragi.”

Research reveal that more than half of all Uganda’s beer market is commanded by the low-end segment. Beer is a pastime for the low-end market segment, who consume in volumes that are needed to make profits. These are the kind of people who drink the whole day and are the majority.

In the other changes, UBL recently appointed Golden marketing to boost distribution particularly merchandising in this hyper market. Distribution has been a key issue for the once giant beer company. After July 11th, 2010 bombing at Kyadondo rugby grounds, and continued security threats more Ugandans now prefer to buy beers from Supermarkets and drink from home.

UBL also unveiled new look for Tusker Lite. The new look comes alongside a new campaign ‘‘Lite the Way’’ aimed at exemplifying the pioneering and evolving lifestyle of ‘‘optimistic, inspiring, young, vibrant and ambitious consumers.’’

Speaking at the launch recently, the UBL Marketing and Innovations Director said: “Tusker Lite is a refreshing low carb beer that delivers an easy drinking experience, a perfect companion for optimistic cool consumers who want a beer that will not slow them down as they party and work hard. It is a beer that lets you remain stylish and in control as you carve your own path in life.’’

Leadership changes at UBL

Sara Banura: Among the new recruits is Sara Banura Kitakule as Divisional Sales Manager for North and Eastern Uganda. Banura joined UBL as key accounts manager two years ago from Coca Cola where she worked for close to seven years. She holds a bachelors degree in development economics and currently pursuing a Master’s degree in Business Administration at University of Edinburgh United Kingdom.

Juliana Kagwa: Formerly, Country manager, of struggling Heineken Uganda, Juliana finally returned home (UBL) where she had worked as assistant marketing manager between September 2010 and June 2012. She returns to UBL as marketing Director in charge of spirits. It remains to be seen if she will have an impact.

Heineken has had a rough time since brand was launched in Uganda. After struggling with the market, last year, in an attempt to attract more consumers for struggling brand, Heineken had to slash prices. As such, the 330ml bottle that used to sell at Ugx 5,000 was reduced to Ugx. 3,000 while 500ml bottle formerly selling at Ugx 7,000 was reduced to Ugx 5,000. The reduction, according to market intelligence, came as result of sluggish sales and some retail shops were threatening to resist stocking the beer.

Market intelligence reports indicate the changes at UBL are yet to make an impact. There has not been any significant change in sales. It’s no wonder when the tax man-Uganda Revenue Authority was looking for corporate accounts to pay Income taxes in advance; UBL was not on the list. On the other hand, Nile Breweries made it to the list. Will they or will they not? Time will tell.

About the author:

Moses Kaketo works with Summit Business Review Magazine, holds a Master’s Degree in Business Administration from Uganda Management Institute, A professional diploma in marketing (CIM) and bachelor’s degree in Education. He sees business in everything. He loves writing business news, reviews and analyses.

Twitter: @mkaketo

Loading...
(Visited 1 time, 1 visit today)

Local Business

Freelyformd: A consultancy firm reinventing delivery of IT Solutions in Uganda

Published

on

Win lots of cash with ForteBet Click here for more

By Our Reporter

Software development and incorporating IT solutions in business has over the years become integral and a driving mechanism for the sustainable growth of any company, especially Small Medium Enterprises (SMEs).

Founded in 2017, Freelyformd is a Ugandan-headquartered provider of IT consulting services and custom software development with IT professionals located internationally.

The company handles complex business challenges, building all types of custom and platform-based solutions and providing a comprehensive set of end-to-end IT services with customer satisfaction in mind.

Freelyformd brings custom and platform-based solutions to large and mid sized companies in Healthcare, Banking, Retail, Telecom and other industries.

From the development stage to the end result, the client is able to interface with the developing team which creates a bond like no other. Freelyformd offers services such as dedicated developer teams, Mobile App Development, Web applications and Website Design, Enterprise software development, software testing & QA, Security Audit, IT Consulting, DevOps,
USSD, and Startup partnerships.

The company has experience and the expertise to build custom web & mobile solutions of any kind for any client as well as IT consulting, software development and testing as can be testified by many clients.

Loading...
(Visited 1 time, 1 visit today)
Continue Reading

Local Business

NSSF members urged to embrace new technology

Published

on

Win lots of cash with ForteBet Click here for more

NSSF MD Richard Byarugaba

By Our Reporter

The National social security Fund has asked all its members (employers and
employees) in the Western region to embrace and skillfully utilize their available technological innovation especially their online channels and platforms. This was accentuated during the NSSF western regional employer meeting which was held at Hotel Triangle in Mbarara on Tuesday.

This meeting was the fourth in the Western region and the second of its kind to take place in Mbarara town. The NSSF Western belt is comprised of districts like Masaka, Mbarara, Bushenyi, Kanungu, Kabale Kisoro and Fort portal.

“We must accept that the environment of doing business has changed due to the sophisticated technological progressions that are happening now, we as NSSF, have pushed for a paperless economy in all our branches, therefore we request all our customers to appreciate our e-services for a better service delivery,” Managing Director, Mr. Richard Byarugaba said.

The Fund’s current statistics show that 70% of their members access their services such as self-registration, clearing remittances and checking balance statements via their online portal whereas only 30% are still visiting the branches for services.

According to Mr. Geoffrey Ssajjabi, NSSF Head of Business, this percentage is promising but it’s not their target, therefore, for them to be able to hit their intended target of 100% e-services, members have to appreciate the existing Fund’s online channels and interact with them more often.

Mr. Byarugaba highlighted the key importance of the online tools such creating customer satisfaction, saves money and time, staff and customer convenience.

Members in the Western region have expressed their sincere gratitude to the fund for always being transparent and interactive with its members on issues that need clarity.

Loading...
(Visited 1 time, 1 visit today)
Continue Reading

Local Business

dfcu Bank rewards winners of Investment Club App

Published

on

Win lots of cash with ForteBet Click here for more

By Our Reporter

dfcu Bank has rewarded six Investment Clubs with cash prizes for emerging the winners of the Bank’s Investment Club campaign dubbed “Bonanza ne Investment Club App”. The two-month campaign which was aimed at encouraging Investment Clubs to grow their savings attracted participation from existing and new Savings Groups across the country.

The Clubs received UGX 1,000,000/- each, which was presented to them during a financial literacy session organized by the Bank under the theme, “Building and growing the Investments Engine.” The session was also attended by over sixty Investment Clubs.

The six campaign winners included; Eight Investment Club, Ngeye Kwagalana Association, Moside Savings and Investment Club, Ladies Together Investment Club, Da Climbers Investment Club, and Fontaine Ladies Association Limited.

In November 2019, dfcu Bank launched its Investment Club App as part of efforts to leverage technology in advancing financial inclusion. With more than 24,000 Investment Clubs, the App is instrumental in simplifying the day to day management of group savings.

Speaking during the session, Robert Wanok dfcu Bank’s Head Personal and Business Banking encouraged the groups to take advantage of opportunities that foster individual and combined growth. He also applauded them for their commitment to growing their respective club savings, which was a key aspect of the campaign.

“On behalf of dfcu Bank, I congratulate our winners and commend their dedication to boosting their financial standing. The success of Investment Clubs is determined by the discipline and commitment of their members. The success of many is made possible by combining the efforts of many and the success of this campaign is a testament to this fact,” Wanok said.

Pamela Nakityo, Senior Manager Investment Clubs and SACCOs at dfcu Bank noted that the Bank has made significant progress in growing a culture that promotes group savings.

“Over the past 13 years, dfcu has not only introduced the Savings and Investment Clubs Product to customers across the country, we have been part of initiatives such as Battle for Cash which directly benefit these groups with funding as well as learning opportunities,” she said.

She also noted that as part of dfcu’s commitment to driving financial inclusion, the Bank extends several benefits to its customers including regular and free financial literacy sessions which are free of charge, mentorship and coaching from expert consultants as well as financial support to grow their savings and investment portfolios.

423 members in 76 clubs have benefited from the financial literacy session since January 2020, with over 5,000 clubs and SACCOs expected to benefit by the end of the year.

Loading...
(Visited 1 time, 1 visit today)
Continue Reading

Local Business

Total Uganda contributes Ugx 30 million towards refurbishing school in Wakiso

Published

on

Win lots of cash with ForteBet Click here for more

By Our Reporter

Total Uganda has reaffirmed their commitment to their continued partnership with the Uganda People’s Defense Forces (UPDF) by contributing Shs30,000,000 towards the construction of a classroom block at Namagera Church of Uganda Primary School in Nakaseke, Wakiso District.

The school was constructed in 1980 and currently has a capacity of 290 pupils. A visit by Total Uganda’s staff to the school revealed that the poor infrastructure (classrooms), limited sanitary facilities and lack of accommodation for teachers were among the issues affecting the school’s academic performance.

Total Uganda’s Managing Director, Obi IMEMBA handed over the cheque to General David Muhoozi, the Chief of Defense Forces (CDF), at a ceremony held at the UPDF headquarters in Mbuya.

During the cheque handover, Mr. IMEMBA reiterated Total Uganda’s commitment to the communities it operates in and commended the UPDF for its Tarehe Sita activities.

“Education is an investment that is why we also need to invest in proper infrastructure to provide a conducive learning environment for pupils. Total Uganda believes in quality education being one the most important growth drivers for the social–economic development of Uganda. Investing in education should be a top priority for everyone in the community,” IMEMBA remarked.

The Chief of Defense Forces, General David Muhoozi expressed his gratitude towards Total Uganda’s contribution and pledged to continue working with them to help various communities.

“As part of our 39th Tarehe Sita celebrations, which we held in Nakaseke, we identified Namagere Church of Uganda Primary School as one that needed help. Through our very good relationship we enjoy with Total Uganda, we reached out to them to offer any support possible. We are thankful that they were willing and have gone ahead to fulfil their promise.
The classroom block will be built by the UPDF Engineering brigade,” General Muhoozi said.

The headmaster of Namagere Church of Uganda Primary School expressed his gratitude at Total Uganda and the UPDF’s generosity towards the school.

“We are indeed indebted to Total Uganda and the UPDF for the additional classroom block. The obligation is on us to repay your efforts by excelling. We are going to work hard to be among the top schools in this community,” he said.

Total Uganda is committed to ensuring access to quality education for all children, in particular the underprivileged ones from disadvantaged and marginalized communities, so as to realize immense significance for overall development of the country.

Loading...
(Visited 1 time, 1 visit today)
Continue Reading
Loading...

Facebook

WHAT YOU MISSED