Brewers Deny Merger

By Stephen IlungoleUganda Breweries Limited (UBL) and the Njeru-based Nile Breweries Limited (NBL) have ruled out the possibility of a merger.They said reports that the two may merge were pure speculation.Uganda Breweries Limited yesterday said neither brewery is capable of supplying the needs of the Ugandan beer market, UBL responded in a press statement on Wednesday.UBL communications manager Charles Muhoozi said, “This is not the situation in Kenya or Tanzania where Kenya Breweries Limited and Tanzania Breweries Limited are quite capable of absorbing the minority market share of the opposition company. In Uganda, the market is shared equally by both companies.”He said the beer industry’s single concern in Uganda is the steady and on-going loss of volume arising from the hiking of excise duty last June.“Since then, sales have been in decline with no correction forecast in the medium term,” he added.NBL acting chief executive Peter Stuttard, said the report was “absolute fabrication.”“What merger? It doesn’t make sense. If you are talking about Kenya and Tanzania, I can confirm that. “The Ugandan market is very different. Our business here is going on normally,” he said.Another NBL source earlier said, “I haven’t heard about the merger. I doubt if it is possible.” Castle Brewing Kenya closed its plants in Thika and its production was transferred to the former rival, the East African Breweries Limited’s Nairobi plant, Kenya’s Daily Nation newspaper reported on Tuesday. The paper reported that about 1,000 people lost their jobs.Ends