Distell acquires stake in Kenyan spirits group

South African drinks group Distell, owner of Amarula liqueur, has acquired a 26% stake in KWA Holding East Africa Limited (KHEAL), a leading spirits manufacturer, bottler and distributor in Kenya.

Distell has purchased a 26% stake in a leading Kenyan spirits manufacturer, bottler and distributor

The group announced today that it had purchased the stake in KHEAL for KES860 million (£5.7m) in a bid to “ramp up its investment” on the African continent and “gain access to several leading brands”.

“We are thrilled with our latest investment which comes at a time when the economic prospects across East Africa are highly promising,” said Richard Rushton, CEO of Distell Group.

“East Africa Common Market’s combined population of more than 150 million and an economy boosted by recent energy discoveries, present exciting opportunities.”

The acquisition is Distell’s latest in a series of “strategic direct investments” on the African continent, having opened a bottling plant in Ghana last month and securing land in Nigeria and Angola in order to build manufacturing plants next year.

Since 1998, KHEAL has been producing, bottling and distributing a number of Distell brands, including Viceroy Brandy, Clubman Punch, Castle Brand Aperitif.

These brands are distributed alongside Amarula, Drostdy-Hof and Cellar Cask, among others.

KHEAL also owns a number of leading local Kenyan brands, including Kingfisher, Kibao, Caprice and Yatta wines, which Distell claims it aims to support.

“Distell’s wealth of experience in the ciders, spirits and wine segments will bring new capabilities to KHEAL and increase its competitive position, unlocking and creating significant value,” added Rushton.

In February this year, Distell reported that its revenues had risen despite an “extremely challenging” domestic market.