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  • September 2019 (Revised May 2020)
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Keroche (A): Fighting for Share in the Kenyan Alcoholic Drinks Market

By: Ramon Casadesus-Masanell and Pippa Tubman Armerding
  • Format:Print
  • | Language:English
  • | Pages:23
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Abstract

This case discusses the challenges faced by Kenyan alcoholic drinks producer Keroche Industries Limited in 2003, when the Kenyan government accused the company of manufacturing and selling substandard alcoholic drinks, revoked its liquor licenses, and shut down its manufacturing facility. At the same time, the multinational East Africa Breweries Limited (EABL) was planning to enter the same low-income market as Keroche. The husband and wife duo Tabitha and Joseph Karanja had founded Keroche in 1997 with the aim of providing Kenya’s low-income consumers with a cheap and safe alcoholic drink alternative, since these consumers frequently turned to unregulated, informally brewed alcohol that could blind or even kill those who drank it. However, the government was now claiming that Keroche, too, produced substandard drinks. Tabitha Karanja was convinced that EABL was behind these government attacks. The case describes the history of Keroche and EABL, and asks what Tabitha Karanja might do now to combat the allegations of the government and respond to the factory closing.

Keywords

Keroche; Alcohol; Wine; Manufacturing; Informal Market; Regulation; Illicit; Illegal; Shutdown; Factory; Low-income Consumers; Multinational; Local; Government; Allegations; Accusations; Negative Press; EABL; Tusker; Beer; SAB; Chang'aa; Naivasha; Rift Valley; East Africa; Lawsuit; Legal Battle; Business Ventures; Business Exit or Shutdown; Business Growth and Maturation; Business Startups; Production; Safety; Quality; Distribution; Small Business; Family Business; Crime and Corruption; Customer Focus and Relationships; Decisions; Income; Demographics; Geographic Scope; Geographic Location; Goods and Commodities; Government Legislation; Growth and Development; Business History; Lawsuits and Litigation; Laws and Statutes; Lawfulness; Goals and Objectives; Consumer Behavior; Market Entry and Exit; Problems and Challenges; Social Issues; Poverty; Strategy; Competition; Entrepreneurship; Manufacturing Industry; Food and Beverage Industry; Kenya; Nairobi; Africa

Citation

Casadesus-Masanell, Ramon, and Pippa Tubman Armerding. "Keroche (A): Fighting for Share in the Kenyan Alcoholic Drinks Market." Harvard Business School Case 720-390, September 2019. (Revised May 2020.)
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About The Author

Ramon Casadesus-Masanell

Strategy
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Related Work

    • September 2019
    • Faculty Research

    Keroche (B): Considering Entry into the Kenyan Beer Market

    By: Ramon Casadesus-Masanell and Pippa Tubman Armerding
    • September 2019 (Revised May 2020)
    • Faculty Research

    Keroche (C): The Excise Tax Increase

    By: Ramon Casadesus-Masanell and Pippa Tubman Armerding
    • September 2019 (Revised May 2020)
    • Faculty Research

    Keroche (D): Transforming the Core Business

    By: Ramon Casadesus-Masanell and Pippa Tubman Armerding
    • September 2019 (Revised May 2020)
    • Faculty Research

    Keroche (E): Considering Additional Capacity

    By: Ramon Casadesus-Masanell and Pippa Tubman Armerding
    • September 2019 (Revised May 2020)
    • Faculty Research

    Keroche (F): Future Growth Plans

    By: Ramon Casadesus-Masanell and Pippa Tubman Armerding
    • September 2019 (Revised May 2020)
    • Faculty Research

    Keroche (A): Fighting for Share in the Kenyan Alcoholic Drinks Market

    By: Ramon Casadesus-Masanell and Pippa Tubman Armerding
    • June 2023
    • Faculty Research

    Keroche (A)–(F)

    By: Ramon Casadesus-Masanell and Namrata Arora
Related Work
  • Keroche (B): Considering Entry into the Kenyan Beer Market By: Ramon Casadesus-Masanell and Pippa Tubman Armerding
  • Keroche (C): The Excise Tax Increase By: Ramon Casadesus-Masanell and Pippa Tubman Armerding
  • Keroche (D): Transforming the Core Business By: Ramon Casadesus-Masanell and Pippa Tubman Armerding
  • Keroche (E): Considering Additional Capacity By: Ramon Casadesus-Masanell and Pippa Tubman Armerding
  • Keroche (F): Future Growth Plans By: Ramon Casadesus-Masanell and Pippa Tubman Armerding
  • Keroche (A): Fighting for Share in the Kenyan Alcoholic Drinks Market By: Ramon Casadesus-Masanell and Pippa Tubman Armerding
  • Keroche (A)–(F) By: Ramon Casadesus-Masanell and Namrata Arora
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