This archive report was first published on 30 June 2021.
Kenyan Originals: A Craft Beverage Success Story ¶
Kenyan Originals, a company founded by Alexandra Chappatte in 2018, has achieved a significant milestone in the craft beverage industry. The company's annual turnover has crossed the $1 million mark, with ambitious plans to reach $25 million in the next four years.
Chappatte's inspiration for Kenyan Originals came from the traditional muratina brew, which has gained popularity among expatriates abroad. The company's beverage portfolio includes over 10 flavors, ranging from ciders, mixers, and tonics to iced tea and soon-to-be-launched spirits.
"No one was making local Kenyan craft beverages. Our cider portfolio is inspired by muratina," Chappatte explained in an interview.
Kenyan Originals' products are made from locally sourced materials, including pineapples, lime, passion, mangoes, and tea. The company also sources other ingredients such as cucumbers, rose flowers, hibiscus, mint, and ginger from farmers in various regions, including Kisii, Meru, and Nanyuki.
"Ultimately, we want to create Kenya's version of wine, it's about making sure you have great quality fruit but from the right region and with the right variety," Chappatte said.
Despite facing challenges in the competitive market, Kenyan Originals has managed to establish a strong presence in the industry. The company is now found in over 600 wines and spirits shops and about 140 modern trade outlets across the country.
Chappatte attributes the company's success to its focus on using local raw ingredients and studying Kenyan traditions of making drinks. "It helps that no other local brewer uses fresh fruits. They use concentrates and artificial flavoring. That gives us an edge in the market," she said.
Kenyan Originals is planning to expand its product range and distribution channels, including partnering with an e-commerce player to penetrate counties outside Nairobi. The company is also looking to venture into spirits and needs additional investments to expand its capacity.
"We have managed to grow and tap into investors. We are planning to venture into spirits and need additional investments in order to expand capacity," Chappatte said.
She noted that fundraising for Kenyan manufacturers is not a walk in the park compared to other sectors. "The Kenyan investment landscape is difficult if you are in manufacturing. I reckon it's easier if you are in tech or impact space," Chappatte added.
Kenyan Originals has received a boost from an angel investor, Chandaria Capital, founded by Darshan Chandaria, who now sits on the company's board. Chappatte emphasized the importance of having the right team, stating that women are "amazingly hard-working in this country."
On expansion plans, Chappatte said that Kenya is their first "stomping ground" and they are taking a cautious approach to any expansion. "Businesses make the mistake of jumping outside quickly when growing and lose focus on their key market. Besides, we're called Kenyan Originals and we do want this market to be our home ground," she said.
