Makers of popular range of ciders, gins and iced teas, African Originals has accused East African Breweries Limited (EABL) of waging smear campaigns, which have led to a tougher working environment and loss of market share.
- The Nairobi-based alcohol startup accuses EABL of launching a similar competing range of products, dubbed Manyatta, in December last year.
- Since then, KRA has suspended African Originals’s production license and sealed its spirits line, rendering it unable to produce or sell some products.
- African Originals has hired a team of UK-based legal advisors who on February 19th sent a letter to Diageo General Counsel in London, even though KRA says the decision to suspend the production license was tied to a wider ongoing government crackdown on illicit liquor.
The company further alleges that EABL staff have maligned their products, and incentivized supermarket workers not to display their products. Reports of the conflict between the two brewers were first reported by news website Semafor.
In mid January this year, a number of Kenyans took to X (formerly Twitter) saying they had fallen ill after consuming different KO products. This, allegedly, was an EABL-instigated smear campaign, led by Wowzi, a platform designed to help brands automate creator marketing workflows and programs.
In February this year, Wowzi was selected to join the first cohort of Diageo PLCās growth accelerator programme through Diageoās work with EABL. The accelerator programme, known as Fusion by Diageo, aims to identify leading innovators to co-develop the next generation of digital products that will elevate consumer experiences.
African Originals, which sources all its fruit from local farmers, was founded by British executive Alexandra Chappatte in 2017. It has attracted investors including Phoenix Beverages, Mauritiusā largest brewer which acquired a 28.15% stake in the company in February.
“We have raised the matter directly with Diageo UK, and we are waiting for their response. We have made no other comments.” Said Alexandra when reached for comment.
In a statement dated March 25 2024, EABL refuted the claims, terming them as false, defamatory, baseless and unsubstantiated.
“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.” Read the statement in part. “EABL is formally requesting African Originals to retract their false allegations.”
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