Battle for energy drink market has begun heating up with a new entrant showing huge intent to disrupt the market with a new pricing and value proposition strategy.
European Energy drink maker, Mutalo Group has picked two distributors, Redhawk International and Mombasa Enterprise in its maiden entry to Kenya to help market and sell its flagship product, Kabisa.
It is also banking a robust brand positioning to endear Kenyan consumers to the brand.
Next Month a consignment of 10 containers worth Sh 22 million is expected to dock at the Port of Mombasa.
“We have already contacted a number of local distributors and making plans for our first consignment that should be docking at the port of Mombasa early next month,” said Mutalo Group Chief executive officer Tomasz Nowowiejski.
Nowowiejski said their products understand Africa-a backing it bets big will revolutionaries the energy drinks market.
The company is developing a pricing strategy to capture all segments of the market to tame stock out risks.
The difference between KABISA and other energy Drinks currently in the Market is Value for Money when it comes to Quality he said.
“African beverage markets have a tendency of being bi-polarized –there are very cheap low quality drinks and other hand high quality ones which are oftenly heavily overpriced,” said Nowowiejski.
The drink which is ‘currently doing well’ in several countries in Europe, Africa, Asia and North America will be launched in the country soon.
Mutalo is optimistic that KABISA will be big in Africa especially now that African Markets are witnessing an expansion.
Key rivals in the market include Glaxosmithkline’s Lucozade that controls 44 percent market share-this is the oldest player in Kenya.
Others are Shark-owned by Ocean Foods Kenya but made in Thailand, Red Bull, Burn, Monster energy and vigor.
A Euromonitor study shows prolonged hot weather conditions and more manual labour along with growth in the popularity of sports in the country are major drivers for demand in energy drinks in Kenya.
Rise of gyms and health spas in Kenya are new opportunities that were seen pushing up sales for energy drinks in 2015.