Beverage industry sees significant growth

DAR ES SALAAM: TANZANIA’S beverage industry has experienced a remarkable surge, driven by robust market demand.

The industry generated a staggering 3.0 billion US dollars (8.95tri/-) in total sales last year, up from about 2.5 billion US dollars (6.58tri/-) the previous year, according to the Tanzania Investment Centre (TIC).

The TIC Executive Director, Mr Gilead Teri, attributed this growth to the government’s proactive efforts to create a favorable business and investment climate.

“The growth in sales revenue in the beverage industry is contributed by the continued efforts made by the government to create a favourable business and investment environment in the country,” he said in Dar es Salaam over the weekend during an event celebrating Mega Beverages’ two decades of investment in the industry.

During the period under review, the spirits industry alone generated 731 million US dollars (1.92tri/-) compared to about 666.6 million US dollars (1.75tri/-) in the previous year.

Further, this growth highlights the industry’s recovery and expansion, driven by rising consumer demand across both alcoholic and non-alcoholic beverage segments.

“These efforts have attracted both local and foreign investments, facilitated easier market access and fostered a more competitive and dynamic industry,” the TIC boss said.

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Mr Teri said that the beverage sector is one of the largest and most competitive, comprising both local and foreign companies, however, Mega Beverages, a local investment firm, has remained steadfast over two decades of investment.

“The local beverage firm has remained strong in the market due to its unwavering focus on quality and its commitment to sourcing raw materials locally,” he noted at the event that saw the unveiling of a new spirit brand.

Mr Teri said that the government continues to offer various incentives to investors, including those involved in local sourcing, due to its positive multiplier effects on the agriculture sector.

He noted that currently, almost 70 to 80 per cent of beverages available in the market are produced locally, serving only a few, but in the next two to three years, most of them will be manufactured locally.

“The Tanzanian market has huge potential to attract investments, enabling the few imported beverages to be manufactured locally,” he added.

He said for example, Mega Beverages special-edition offers demonstrates highlights the strength and immense potential of local production and its positive impact on the economy.

The Mega Beverages Brand Manager, Ms Awatif Bushiri, said the company plans to continue expanding its footprint in the country’s market and beyond.

“As part of its growth strategy, the company plans to introduce new innovative products that reflect evolving consumer preferences while staying rooted in local culture,” she said.

She stated that the company’s products have now penetrated markets in Kenya, Rwanda, the Democratic Republic of Congo (DRC) and Malawi.