Kasapreko: A Symbol of Innovation in Ghana's Beverage Sector

Kasapreko and its flagship product, Alomo Bitters, are now a household name in Ghana where consumption of locally sourced beverages is picking up steadily. Having pioneered locally sourced bitters, spirits and whiskeys, among others, in a country that was initially used to either typical local brews such as akpetehsie and pito or foreign sourced brews, the company, owned and run by relatives, continues to serve as a symbol of inspiration to up and coming entrepreneurs as well as those already in business.

Its Deputy Managing Director, Mr Richard Adjei, who is one of the youngest managing directors in the country, sees this as humbling as it is also inspiring. "The image Kasapreko has is encouragement. Most companies in Ghana start and they die after five years or sometimes after 20 years but people have grown up with Kasapreko for nearly 25 years. A lot of entrepreneurs study our business and they learn from us on what to do to become like Kasapreko. I meet a lot of lecturers from the universities who always tell me they are using Kasapreko in their lectures, in their books and scripts as case studies of a Ghanaian success story. So, Kasapreko is actually one of the companies that encourages people to be active in business".

That not said, Mr Adjei said his outfit is not taking comfort in glories as it is working harder to entrench its position in Ghana, broaden its reach in Africa and penetrate the global beverage industry with authentic traditional spirits that return health benefits. "Kasapreko is currently a flagship of the liquor industry in Ghana and we want it to be a flagship of the liquor industry of Africa," the company's DMD said, signalling its readiness to go globalise its operations. The company will be celebrating its silver jubilee next year and Mr Adjei said it would be using that opportunity to announce itself to the outside world through Africa.

The Kasapreko Story

It’s been nearly 25 years since Kasapreko, a local brewing giant founded and owned by relatives, sprung up in Ghana's beverage industry to brew bitters, spirits and whiskey among others, from plants and herbs of medicinal value and other raw materials, mostly sourced locally, for a teaming clientele. The company was established in 1989 in response to an emerging demand at the time for good-quality alcoholic drinks that are within the reach of the ordinary Ghanaian.

Although it started operations with a handful of family relatives in Nungua, a commercial city in the national capital, years of growth buoyed by its consistent innovation has led to annual expansion in the company's line of business. That has meant that more employment opportunities created by Kasapreko in the country rising unemployment is already a challenge to government officials and people in authority. Currently, Kasapreko employs over 400 people in its head office and factory at Baatsonaa, off the Spintex Road in Accra. "Outside – in the farms and across our supply chain – we generate employment for more than 1,000 people," Mr Adjei said.

Its factory is equipped with two state-of- the art Krones lines and has a 40,000 PET bottles per hour line, which is arguably the fastest spirit line ever installed. The company also has a 30,000 Glass line supplied by Krones. It also owns about 200 hectares of forest land from which it gets the plants and herbs used in manufacturing its products.

Thus, despite Kasapreko's meek beginning in the late 1980s, its strive for excellence and desire to satisfy the customer, has made it a force to reckon with in the beverage industry both in Ghana and Africa as a whole. Its flagship product, the Alomo Bitters, controls about 50 per cent of the spirit and bitters market in Ghana and has also made its roots into the Nigerian market.

Kasapreko's Products and the Future Prospects

Kasapreko is in an industry whose future is as bright as the Ghanaian economy. As economic growth in the country, one of the most stable economies in Africa, continues to be positive, more and more people will move into the middle and upper income bracket. This is good news as it means more business opportunities and clients for fast moving consumer goods manufacturers such as Kasapreko. That is because, as Ghana's annual double digit growth rates begin to reflect in the pockets of the citizenry, there would be enough resources to spread on traditionally 'not too demanding areas.' Such areas include the beverage industry, one that local analysts say is now growing at about 10 to 15 per cent per annum. Business in this area should be then.

Unfortunately however, it is not Kasapreko alone that is into this business as enough prospects in the sector have sent many running into it. There are giant as well as modest companies that have setup in the country to either import and/or distribute drinks ranging from non-alcoholic beverages to hard liquids such as gin, spirits and whiskey - substitutes to Kasapreko's products - or locally manufacture them using a blend of local and foreign raw materials. To survive and continue to make profit therefore, a company needs to be innovative and consumer centred, a trait that has consequently become a tradition to the Kasapreko family.

According to the DMD, market for Kasapreko's products, which are mostly spirits, is ever increasing as most of its customers continue to act as quality officers and sales persons for Kasapreko. "We do not only do commercials and adverts on the radio but we actually sell our products by the word of mouth - people go out and try the product and actually accept the benefits it gives. Our consumers are our sales men," he said. In addition to the Alomo Bitters, Kasapreko also manufactures about 13 products, some of which include the Kalahari Bitters, Brandy, Opeimu Bitters, Ogididi Bitters and Cocoa Liquor, which is sourced from Ghana's premium cocoa bean. It also produces some non-alcoholic drinks, including mixers.

In explaining what the company's products are, the DMD said "basically, bitters is gin with herbal plants that have medicinal qualities. So you are not only drinking gin, you are drinking gin with medicinal qualities". In brewing some of the products, Mr Adjei explained that the roots, plants and tree barks are often treated with alcohol to extract their medicinal content out over a period of time. Once their content is extracted, he said a little bit of flavour and some amount of alcohol extracted from sugar canes grown in Brazil and South Africa is added and the content ready for consumption.

On the prospects of the products, he said the future was forever bright, especially given that the local economy continues to grow. "There are lots of people now moving up into the middle income class, so now there’s a lot of disposable income. At Kasapreko, we just invested over US$30 million in a new plant because we know that Ghana and Africa as a whole are awaiting a promising future," he said.

Kasapreko's Challenges

The challenges that Kasapreko faces are not peculiar to those confronting the Ghana's beverage industry; they are industry-wide But in them come investment opportunities for investors who have interest in Ghana burgeoning beverage industry. "I would say the major challenge we face in Ghana is that our company imports a lot of raw materials, especially for the packaging materials, glass and the ethanol," the company's DMD said. "But if there are other businessmen interested in Ghana who can invest in glass and other raw materials that directly or indirectly affects us, such investments would really help us and the country". He also mentioned perception about the company's products as another challenge facing it but "once anyone tries them, they will always ask for more."

Kasapreko Welcomes Foreign Investments

Despite the company's roots as a typical family business, Kasapreko is willing to partner with investors as it gears up for the foreign market. The company is looking to export its products to target markets such as Nigeria, South Africa, Angola, Kenya, Tanzania and Cameroon. Mr Adjei said that the company will welcome any business person who wishes to export to these markets as that would help strengthen its expansion objective.

In sum, Kasapreko's DMD said "our industry (the beverage industry) has been growing steadily – more than 10% year-on-year growth – and I would like to encourage more investors to come and invest in the country."