Setting up a craft beer brewery in Kenya is a daunting task, fraught with regulatory hurdles and lengthy licensing processes.
However, Mark Genders, an experienced brewer, has successfully navigated these challenges to establish a foothold in the burgeoning craft beer market.
Key Takeaways
- Mark Genders transitioned from the UK hospitality industry to craft brewing in Kenya.
- The licensing process for breweries in Kenya can take up to 24 months.
- Craft beer currently accounts for less than 1% of Kenya’s beer market.
- Genders has doubled production capacity since acquiring Wananchi Breweries.
The Journey Begins
Mark Genders’ journey into the craft beer scene began 25 years ago when he moved to the UK to care for his daughter. While there, he ventured into the hospitality industry, eventually running 17 pubs and a brewery.
His passion for brewing led him to create INNformal Brewery, where he honed his craft and developed unique beer profiles.
In 2019, during a holiday in Kenya, Genders met a friend who shared his vision of launching a local craft brewery.
Despite the onset of the Covid-19 pandemic, they imported 46,000 cans of Hopsmith, a UK-based beer brand, to test the market. The positive response confirmed the existence of a niche for high-quality craft beer.
Navigating Regulatory Challenges
Setting up a physical brewery in Kenya proved to be more complex than anticipated. Genders faced a painfully slow licensing process, which could take up to two years.
To expedite their entry into the market, he and his partner explored contract brewing options and eventually acquired Wananchi Breweries, seizing the opportunity for its licenses.
Genders highlights the stark contrast between the regulatory environments in the UK and Kenya. While the UK has clear regulations, Kenya’s bureaucracy presents significant challenges.
He notes that licensed breweries account for only 5-6% of the alcohol consumed in Kenya, while unregulated brewers thrive without scrutiny.
Building a Craft Beer Market
Kenya’s beer market has traditionally been dominated by mainstream lagers, making it difficult for craft beer to gain traction.
Genders emphasizes the need for consumer education, as many beer drinkers are accustomed to familiar brands. Craft beer, with its richer flavors and small-batch production, requires a shift in mindset.
Despite these challenges, Genders sees a growing appetite for craft beer, particularly among urban, middle-class consumers.
He explains that the higher cost of craft beer is due to the use of high-quality ingredients, unlike mass-market brands that often use cheaper alternatives.
Scaling Production and Overcoming Obstacles
Since acquiring Wananchi Breweries, Genders has doubled production capacity from 10,000 liters to 20,000 liters, producing 2,000 liters per day.
However, he acknowledges the importance of balancing supply and demand to avoid overextending the business.
Genders faces additional challenges, including the need to import 100% of his brewing ingredients, as local conditions do not support the growth of hops. Infrastructure costs, such as water supply and filtration systems, also add to the financial burden.
The Future of Craft Beer in Kenya
Reflecting on his experience, Genders believes there is significant potential for craft beer growth in Kenya. He notes that the Covid-19 pandemic reshaped drinking habits, encouraging consumers to explore new flavors.
Genders’ key takeaway from his years in the industry is the importance of consistency in product quality and marketing.
As Kenya’s craft beer scene slowly gains traction, Genders remains optimistic about the future. He believes that consumers now have more choices, and this shift is a positive development for the industry.