Phoenix Beverages Limited (PBL), a Mauritius-based beverage company, has been approved by the Competition Authority of Kenya (CAK) to acquire a 28.15 per cent stake in Africa Originals Limited.

This move signifies PBL's growing interest in the Kenyan beverage market, allowing them to gain a foothold and influence in the industry.

Africa Originals, incorporated in England and Wales, owns Savannah Brands Company, a manufacturer and seller of various alcoholic and non-alcoholic beverages.

These include popular Kenyan brands like Kenyan Originals (KO) Alcoholic Fruit Cider, Gin, and Iced Tea & Tonic.

The financial details of the deal remain undisclosed.

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The CAK, in its statement, emphasized that the acquisition is unlikely to negatively impact competition within the market for alcoholic and non-alcoholic beverages.

"This approval has been granted on the finding that the transaction is unlikely to negatively impact competition in the market for manufacture, processing, distribution and sale of alcoholic ciders, alcoholic spirits and non-alcoholic ready-to-drink beverages," CAK statement read.

This green light paves the way for PBL to enter the Kenyan market, potentially seeking further expansion opportunities in the future.

Interestingly, PBL's parent company, IBL Group, already has a presence in Kenya through its ownership of Naivas Limited, a supermarket chain.

This existing link between PBL and Naivas creates vertical integration, as Savannah Brands supplies beverages directly to the supermarket chain.

Furthermore, the agreement grants PBL "minority controlling rights" within Africa Originals.

This includes influence over crucial aspects like budgets, annual business plans, and even the appointment of senior executives.

This deeper level of involvement indicates PBL's intention to actively shape the strategic direction of Africa Originals and potentially leverage the Kenyan company's established brands to solidify its own market position.

With this strategic acquisition, Phoenix Beverages Limited is poised to become a significant player in the Kenyan beverage market, collaborating with established brands and gaining valuable market knowledge through its partnership with Africa Originals.