Keroche targets sorghum farmers with Sh200m kitty

Market News

Keroche targets sorghum farmers with Sh200m kitty

Wednesday, August 7, 2019 20:30

By BRIAN NGUGI

Keroche Breweries says it will pay sorghum farmers up to Sh200 million to supply 3.6 million kilogrammes of the beer ingredient over the next five months.

Chief Executive Tabitha Karanja said the brewer would put farmers on contract to ensure steady grain supply following the launch of a new lager (70 per cent made of white sorghum and 30 per cent barley) by the Naivasha-based brewer aimed at the middle class.

“We have just started and we are going to contact thousands of small-scale farmers … We intend to buy 3,640,000 kilogrammes which will cost us Sh200.2 million that we will pay to the farmers,” she said.

“Currently we are buying sorghum from all farmers across the country and we are happy that the farmers have ready and quality sorghum that our brewmaster is satisfied with and meets the international brewing standards.”

She said the firm would double the amount of sorghum procured from farmers with rising demand. “With time we intend to increase the capacity two times,” she said.

The maker of Summit Lager, Summit Malt and ready-to-drink vodkas such as Crescent Vodka and Vienna Ice last month unveiled a new larger known as KB Lager. It targets the expanding middle-class revellers whose tastes are trending toward premium beer. The beer is being sold in a long-neck bottle at a recommended introductory retail price of Sh120, said the firm.

She said the firm, whose Naivasha plant has a daily production capacity of 800,000 bottles of beer, will expand its portfolio to also target the lower end of the alcoholic beverages market.

“We want to introduce more brands into the market and to invest in a keg line for packaging 100 percent non-malted local beer for the lower market, which will also support more farmers,” she said.

Keroche earlier said sales of the drinks targeted at the low-end market are up 50 per cent on the back of President Uhuru Kenyatta’s renewed fight against illegal brews.