Soft drink production fell for the first time in in a decade last year, owing to health-safety requirements enforced to combat the spread of Covid-19.
This is according to the Kenya’s National Bureau of Statistics (KNBS), which recorded a drop of 80.4 million litres in 2020, defying a pattern of gains since 2012.
In 2020, beverage firms produced 550.6 million litres, down from 630.9 million litres the previous year.
As a result, beverage companies such as Coca-Cola saw a reduction in sales. Coca-Cola, whose brands include Sprite and Fanta, had a 13% decline in net operating income in 2020, falling to Sh3.5 billion from Sh3.9 billion in 2019.
The fall is attributed to restrictions that led to restaurant and bar closures as well as the restriction of social gatherings.
In order to combat the spread of Covid-19, Kenyan businesses were subjected to a series of harsh measures in 2020, including six months of travel restrictions in and out of Nairobi and Mombasa, as well as a dawn-to-dusk curfew.
This had an impact on social events such as parties and weddings, as well as eateries, resulting in a decrease in soft drink consumption.
Due to a lack of funds as a result of job losses and income reductions, many households have curtailed their use of non-essential commodities such as soft drinks.
A spike in demand for vitamin-rich juices was also seen, owing to consumers’ desire for healthier, less-artificial beverages.
