• Serengeti Breweries is the Group’s fastest-growing business, expanding by 19 per cent during the half-year ending December 31, 2019.
• SBL has three operating plants spread out across the country; the Dar es Salaam plant ,Mwanza and Moshi.
East African Breweries Limited is seeking to acquire an additional 30 per cent stake in Serengeti Breweries Limited, as it moves for a bigger pie of Tanzania's alcohol market.
The acquisition will add up to 51 per cent its stake in the Tanzania brewer, acquired in October 2010.
In a cautionary notice on Friday, the beer maker informed its shareholders and investing public that it intends to enter into a conditional transaction to purchase additional 30 per cent shareholding in SBL, is its subsidiary.
Completion of the transaction is subject to various regulatory approvals in Kenya and Tanzania.
“Shareholders of EABL and the public are advised to exercise caution when dealing in shares of EABL,” the firm said in a notice through the Nairobi Securities Exchange.
In the year ended June 2018, EABL announced the conversation of Sh15.3 billion loans receivable from Serengeti into equity.
Serengeti Breweries is the Group’s fastest-growing business, expanding by 19 per cent during the half-year ending December 31, 2019.
This was lifted largely by consistent performance in local executions to drive the Serengeti beer trademark.
EABL leveraged several innovative initiatives during the half-year, with new brands contributing 28 per cent of the net sales.
Recently launched brands such as Hop House 13 Lager, Guinness Smooth, Sikera Cider, Black & White whisky and Triple Ace vodka contributed significantly to growth in Tanzania.
EABL announced a profit after tax of Sh7.2 billion during the period.
Net sales were up 10 per cent to Sh45.9 billion, driven by higher volumes, up five per cent across the Group and categories, and better price mix across all brands.
According to management, the region's largest manufacturing company leveraged increased investment and operational efficiencies across markets and segments to expand, despite increases in alcoholic beverage taxes.
SBL is the second-largest beer company in Tanzania, with its own brands accounting for 15 per cent of the market by volume and when combined with EABL's portfolio, accounts for approximately 28 per cent of the Tanzanian branded beer sector.
SBL has three operating plants spread out across the country; the Dar es Salaam plant which has a production capacity of 350,000 hectoliters and the Mwanza plant with a capacity of 650,000 hectoliters.
The third one is the state-of-the-art plant in Moshi which was commissioned in January 2012, with a production capacity of 500,000 Hectoliter and expandable to 800,000 hectoliters.
Its flagship brands include Serengeti Premium Lager, Tusker Lager, Tusker Malt Lager, Uhuru Peak Lager and Guinness stout.