East African Breweries Limited (EABL), the region's leading brewer, has vehemently denied accusations of unfair competition levelled against them by Nairobi-based startup African Originals.
African Originals, known for their "Kenyan Originals" range of beverages, claims to have faced a series of challenges since EABL launched a competing cider line in December 2023.
These alleged challenges include regulatory hurdles, product disparagement, and manipulation of supermarket product placement.
In a statement released on Monday, EABL refuted the claims as "malicious" and "defamatory," asserting their commitment to ethical business practices and fair competition.
They emphasized their strict internal policies regarding partnerships with influencers, ensuring compliance with local regulations.
Read More
"EABL strongly refutes these malicious claims as they are false, defamatory and lack any evidence. We do not condone such behaviour within our business by any of our third-party partners or employees," EABL stated.
"Our commitment to ethical business practices and fair competition remains unwavering and is enshrined in our clear internal policies about how we engage our partners including influencers who must follow and/or be in line with any local laws."
The dispute centres around African Originals' belief that EABL is attempting to push them out of the market through underhanded tactics.
The startup claims EABL's new cider line directly copies their products and accuses EABL staff of maligning their brand.
Additionally, African Originals suspects EABL of influencing supermarket staff to de-prioritize their products and alleges involvement in viral social media posts, suggesting health complications from consuming their beverages.
The startup has linked these alleged social media attacks to Wowzi, a platform connecting brands with influencers, due to EABL's past collaboration with Wowzi and Wowzi's inclusion in Diageo's (EABL's parent company) growth program.
"We are ready and willing to compete with EABL on merit through the quality and prices of our products," stated African Originals chairman Henry Rudd, "but we are not prepared to suffer serious commercial harm as a result of their smear campaign."
This ongoing saga highlights the increasing competition within Kenya's alcoholic beverage market, with established giants facing pressure from innovative startups.
The outcome of this dispute will be closely watched by industry players and consumers alike.