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Market Intelligence: Is Nile Breweries Back into the Beer Industry Game?

Nile Breweries Limited (NBL) aka AbInbev has been a dormant force in the market for quite a while. From the time it went through the opaque beer moment with the Kibuku line to now, AbInbev had never been the same strong force that it was in the market. It had cut down on advertisement and reduced the aggressiveness that had characterized it in the times of SABMiller’s.

There was always a common myth that the SABMiller genes were those of the White South Africans aka the Boers when it came to playing business. They would lock in and go all out. And as such, during their time, they roared across the Ugandan beer industry and claimed majority market share.

During Covid-19, Uganda Breweries Limited (UBL) fought back and clinched its top position as NBL retreated in the background. However, going by the recent events, it looks like NBL has made a statement that they’re now back in the market and ready for full action.

In one week, NBL announced its distributorship agreement with Redbull that will make them the official distributor of this energy drink in Uganda. In the same week, NBL re-introduced Chairman ESB beer into the market with a disruptive stunt.

According to insiders, NBL is using these two events as a starter for what is yet to come. “There’s more in the locker; we are now ready to be number one once again. The silent lion will roar once again,” a resource in the marketing department tipped us.

It will be an interesting time to watch as UBL repositions itself more into the Spirits segment while NBL looks to go strong on beer with the addition of the energy drink.

However, one big question lingers; “Who is the target consumer for Chairman ESB?” It’s a 7% Abv beer. Is it being positioned as a competitor for UBL’s Pilsner Lager? Is it targeting the old and accomplished? Is it trying to play on the nostalgia. Or is it to say, that it’s time for young people to go for a high abv as they seek to extend their shilling in a night out?

According to NBL, this beer with its new unique packaging is designed for those who stand out—those who have become the ‘Chairman’ of their time. But one wonders, shouldn’t those who have stood out seek a spirit instead? Would it be a beer to make this statement? Especially a beer in an Amber glass? With a 7% Abv. The positioning question remains a big one and will watch to see how well it’s been answered in the coming weeks.