When Will Africa Export Palm And Banana Wine? I Love What These Entrepreneurs Are Already Doing About It!

Palm wine is a cloudy white drink produced from the sap of
various species of palm trees which are abundant in Africa’s dense
tropical rain forest regions. It is traditionally extracted by a ‘tapper’
and the quantity of sap that can be taken from one palm tree
depends on the mode of extraction, the palm species, season and
the fertility of the soil.
Freshly collected palm wine is very sweet and non-alcoholic.
However, fermentation begins naturally and immediately after
collection. As time progresses, the wine becomes more alcoholic
and has some sourness and acidity to it. Palm wine is also used to
produce a strong and highly alcoholic local gin popularly referred
to as ‘ogogoro’ and ‘Sapele water’ in Nigeria and ‘akpeteshie’ in
Ghana.
Despite its huge popularity in parts of the continent, very little
progress has been made so far to exploit the lucrative potentials of
producing palm wine on a commercial scale like beer (which is
more widely available and consumed). Fortunately, I came across
a company in Ghana that has successfully transformed palm wine
into a commercial success and exports this product to customers
in the US and Europe. I’ll tell you more about this success story a
little later in this article.
5 – Millet, Sorghum and Corn beer
Beer brewed from millet, corn and sorghum (also known as
‘guinea corn’) are widely considered as African beer. For
thousands of years, Africans have been brewing local and
homemade beer made from fermented mixes of millet, sorghum
and corn. Traditionally made by women, this beer is arguably
one of the most popular and widely consumed local alcoholic
beverage in Africa.
Though many different recipes exist, African beer is locally
known as ‘ dolo ’ in Burkina Faso, ‘ pito ’ and ‘ burukutu ’ in
Nigeria, ‘ bili bili ’ in Cameroun, ‘ merissa’ in Sudan,
‘ chibuku ’ and ‘ umqombothi ’ in several parts of Southern
Africa. (image credit:
healingnumenor.wordpress.com)
Unlike foreign (barley-based) beers, most African beers are opaque
beers; that is, they often contain sediments of partially fermented
maize, sorghum or millet. Because millet, sorghum and corn are
abundantly produced in Africa, this beer is much cheaper than
foreign beers which are produced with imported barley and hops. A
high proportion of corn usually produces a lighter-toned beer with
a softer flavor while a high sorghum base produces a much darker
beer.
The recipe for brewing many of the varieties of African beer is
passed from one generation to another. In the next section, we’ll
look at an innovative move by an international beer giant to exploit
the lucrative potentials of local African beer.
My Top Favourite Businesses Promoting African
Wine And Beverage Brands
Thankfully, not everybody has jumped on the bandwagon of
foreign wines, beers and beverages that is sweeping across Africa.
In this section, we shall look at three of my top favourite
businesses that are already taking advantage of potentials in
Africa’s local wines and beers. All the businesses I’m about to
reveal have successfully found a way to brand these local
products in a fashion that appeals to both African and export
markets. Let’s meet them…
#1 - Nkulenu Industries Ghana, a promising exporter of African
Palm wine
Before I found out about Nkulenu’s Palm Drink , I never believed
palm wine could be bottled without going bad or losing its
amazing taste. It turns out it’s possible afterall!
Based in Madina (Ghana), Nkulenu is a fast growing family
business that started exporting its brand of bottled palm wine to
the West about 15 years ago. Today, its top export markets are
in the United States and several countries in Europe.
With its distinct green bottles, the Nkulenu Palm Drink product
is sold in 315ml and 625ml volumes. The business exports over
250,000 bottles of palm drink to international markets every
year. Its top consumers are mostly West Africans in the
Diaspora and a growing number of non-Africans who want to
try something different.
Like everything new and exotic, many non-Africans who taste
palm wine for the first time say it’s like an old indigenous drink
they are familiar with; it’s definitely a taste you have to get
used to. According to the company, Ghanaian Palm Wine,
compared to other West African types, is unique because of the
method of preparation. Those who have tasted Nkulenu’s
brand of Palm Wine (the only Ghanaian brand worldwide)
consider it the best when properly chilled and shaken
thoroughly to blend the yeast.
#2 – Banana Investments Tanzania, Africa’s banana beverage
champion!
From its base in Arusha (Tanzania) and several depots across the
country, Banana Investments started producing and bottling
banana wine since 1993 and was probably the first to transform
this locally produced beverage into a recognizable brand.
The company’s banana wine product is available in three main
brands: Raha, Meru and Malkia . Bottled in 330ml bottles, the
wine has an attractive golden colour, a sweet flavor and an alcohol
content that stands at 11 percent. Priced at about $0.20 per bottle,
its target consumers are mostly low and middle income earners
who cannot always afford to drink normal malt beers and grape
wines.
Interestingly, the company acknowledges that it doesn’t face any
serious competition in the market since the concept of bottled
banana wine is still fairly new in the country. And business is
booming because many of its consumers are hooked to the
product.
The existing and potential future demand for commercially
produced banana wine within the East Africa region is huge and
largely unexploited. By increasing its production capacity and
marketing efforts, this business will continue to succeed in both
local and export markets.
#3 – SABMiller, the global giant that’s leading the expansion of
African beer
SABMiller is one of the world’s oldest and largest beer makers
whose origins dates back to the South African Breweries (SAB)
founded in 1895. Today, the company (now headquartered in
London), is present in over 70 countries around the world and sells
more than 20 billion litres of beer every year. Some of its famous
brands in Africa include Castle Milk Stout, Eagle, Fosters, Impala,
Kilimanjaro and Hero.
Over the past few years, SABMiller has introduced its traditional
African beer brand into 10 African countries. This brand, popularly
known as ‘ Chibuku ’ in many parts of East and Southern Africa, is
a traditional African beer made from corn and sorghum according
to varying local recipes.
This low-alcohol beer is packaged and sold in one-litre cartons.
However, because the beer continues to ferment in the package,
the alcohol content of this beverage increases from about 0.5 to 4
percent after just a few days. As a result, Chibuku beer has a short
shelf life and must be produced and consumed locally since it
cannot be transported across long distances without going bad.
In response to this challenge, SABMiller has introduced ‘ Chibuku
Super’, a variant of this traditional beer that is carbonated and
pasteurized to give it a fixed alcohol content and longer shelf life.
(image credit: zncc.co.zw)
Following the successful release of ‘ Chibuku Super’ , SABMiller
is rolling out this fast-rising brand to several African countries
including Ghana, Mozambique, Swaziland and Tanzania. The
company’s strategy is to provide Chibuku as an affordable beer
for lower-income consumers across Africa. By focusing on millet,
maize and sorghum (the raw materials for African beer), SABMiller
is creating a guaranteed market for thousands of farmers on the
continent.
SABMiller’s support and promotion of African local beer is a big
boost for the continent. With its deep pockets, experience and
global presence, it may only be a matter of time before African
beer is exported beyond the continent.
The 5 Major Opportunities and Challenges for
Africa’s local brands
For Africa’s local beverage brands to truly succeed, entrepreneurs
and businesses interested in this area will have to take advantage
of the continent’s strengths and opportunities. In this section, we’ll
look at five important factors to be strongly considered for Africa’s
wines and beers to become successful. Here they are…
#1 - Africa has a ready and promising market for local wine and
beer
According to a March 2014 report released by Rabobank , Africa
will be the fastest growing beer market in the world over the next
five years. With a population of over one people, brewers and wine
makers are looking to Africa where growth is expected to be driven
by rapid economic growth and a growing population of young
people, millions of who have reached the legal drinking age.
If international brands see a huge potential for their beverages in
Africa, why shouldn’t this be the same for our local wines and
beers? The data and facts on the ground prove that the continent’s
wine and beer market is on the move. This is the best time for
Africa’s local brands to rise to the occasion and target a larger
share of this promising market.
#2 - We have an abundant supply of raw materials for beer and
wine production
The raw materials for the production of Africa’s local brews and
wines are abundantly available on the continent. Africa is one of
world’s top producers of sorghum, millet and corn, the main
ingredients for brewing local African beer.
The tropical forest belts of West and Central Africa are home to a
dense population of palm trees from which palm wine is tapped.
East Africa remains one of the world’s largest producers of
banana, the single most important raw material for the hugely
popular banana wine and beer. In addition to these, the potential
for beekeeping and honey production is high on the continent
thereby improving the prospects for honey wine. (image credit:
waitingroomusa.com)
Surprisingly, most of the foreign beer brands that are gaining
ground in Africa are made from barley and wheat, two cereals the
continent produces in low quantities. No African country is in the
top-10 list of wheat or barley producers in the world. Is there any
reason why Africa has to import these cereals for beer production
when it has an abundant supply of suitable alternatives (ie.
sorghum, millet and corn)?
#3 - We have the Skills, Craft and Know-how
For centuries, Africa has produced its own beers and wines from
locally available foods and materials. Although the recipes may
vary across tribes, cultures and regions across Africa, the
masterful art and craft of wine making and beer brewing has
always been passed from one generation to the next. Africa has
the talents and skills to continue and expand the tradition of its
beers.
However, despite its rich craft in producing local brews, the
continent will need to lean on modern technology if we plan to
successfully compete in today’s beer and wine market. More so,
the need for adopting a more technological angle has become
important in order to address the short shelf life of local beverages
and the health and safety fears of the market.
#4 - African beer and wine needs to be better branded, packaged
and marketed
Despite its high potential for success, there is still a low awareness
and under-appreciation of Africa’s beer and wine in both the local
and international markets. Our beer and wine brands suffer from a
low image and are only supported by weak marketing efforts and
poor packaging. A significant improvement in these areas will
surely lead to greater market acceptance locally and
internationally.
There is a huge opportunity for African beers and wines to position
itself as an exotic and ‘non-mainstream’ product for people who
want to try something different from ‘mainstream’ grape wines.
However, due to low market awareness, poor product image and
wide suspicion of low quality and safety standards, these brands
are still unable to exploit the lucrative market opportunities out
there.
#5 - Africa’s beer and wine industry needs more investment
It is indeed a very good sign that small and big players are already
exploiting the huge potential of local beer and wine. However, like
most young and growing ventures, this sector still needs a lot of
investment to take on the established wine importers and foreign
beer giants on the continent. It’s time for entrepreneurs, local and
foreign investors, and governments to directly invest in this
market.
As I have shown throughout this article, the fundaments prove that
local African beer and wine have a strong competitive advantage in
both local and global markets.
When will Africa export its own beer and wine?
I placed a phone call to my friend as soon as I finished writing
this article to let him know I now had an answer to his question:
“When will Africa export its own wines?” I proudly informed him
that we already have a few companies successfully producing
and exporting beer and wine. Expectedly, he was shocked at the
‘good’ news.
However, I quickly had to remind him that Africa is still behind
in the race for a greater share of its own local beer and wine
market. In addition, the continent also has some strong
advantages and opportunities that are not being exploited and a
couple of challenges we need to watch out for.
In summary, there is still hope for African wine and beer
brands! Only the future will determine if we win or lose more
ground to foreign tastes and preferences in beer and wine.
(image credit: befreshblog.com)
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