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Uganda Report
Marcopolis presents the Uganda Report focused on topics such as economy, investments and doing business, featuring interviews with Uganda's leaders. The sectors under review in this issue are agriculture & agribusiness, health & pharma, hospitality & tourism, industry, insurance, mining & petroleum, services and many more.
InterviewsNovember 27, 2019
Leading Distillers: One of the Top Distillers and Best Manufacturers of Gin and Whisky in Uganda
Moses Mugisha, Director of Leading Distillers
- Written by Sandra Francisco
- Published: November 27, 2019
Interview with Moses Mugisha, Director of Leading Distillers
What is your assessment of the sector in Uganda and the region? What are the latest trends?
The alcoholic beverages sector has a few challenges. But there is no business that does not have challenges. In this sector there are a lot of taxes. We pay 80% excise duty, VAT of 18%, income tax, etc. It becomes difficult to sustain a business.
Is it better to operate in countries outside Uganda in terms of taxes?
The tax policies on alcohol in all of East Africa are similar. The VAT in Kenya is a bit lower at 16%.
How competitive is the sector?
There are more than 20 players. Compared to the population of Uganda, the market share is very tight.
How do you stand out from the competition?
There are a lot of areas you must do well to make sure that you overcome the competition such as the quality of the product, marketing strategies, etc. We are exporting directly in the region in Tanzania, Kenya, and other neighboring countries.
What are your key products?
Our gin is one of our highest selling products.
What makes your gin stand out?
We are quality producers of gin and whisky. We make sure that the quality of the product that we produce is far different from our competitors. The quality of the raw ingredients we use is at a very high standard which gives us a great taste.
How do you sell these products to supermarkets, clubs, hotels?
We began as a very small company in Western Uganda. We grew our business slowly by trading and eventually entered into manufacturing. I am proud to be here now with this strong position the company holds in Uganda today.
We produce whisky as our top product although it has the lowest consumption. It is the best in terms of taste and maturity. Both our gin and whisky are premium brands. There is a certain class that consumes this kind of whisky. We distribute in supermarkets, bars, wholesalers, distribution vans, everywhere within our market coverage.
For some consumers, whisky must come from Scotland or Ireland. How do you approach this perception?
Whisky does not necessarily have to be internationally produced. We use the same standards as those used in Scotland and other whisky producing countries. We have the same technology. We import some materials from abroad, but we produce locally at the same level of quality.
Are you launching beer as well?
We have had proposals of making beer within our management system and shareholders to expand our business. At the moment, we produce a brand in the class of beers called Pearl Ocean Breeze, Sea Breeze, Bay Breeze, and Coconut Cream. They are carbonated beers with a very nice taste which make them a good competitor in the market. We have done market surveys and people like it.
Who is the consumer for these products?
They are low alcohol carbonated beers aimed at ladies. Many do not like high percentage alcoholic drinks. They are also used for cocktails which are popular with women and some men here.
What percentage of sales do you do here in Uganda and what percentage do you do in exports?
We are exporting indirectly because customers buy directly from us wholesale, they process the documentation, and export for themselves. We have been running within 15-20% exports and 80% consumed locally. We are planning to do direct exports of which we are expected to expand our production capacity and after that to grow more than 20% of our current exports done directly.
Are you looking for technological partnerships or investment?
We are always interested in technology. That is why the company has grown to this level. We have discoveries day and night. We have new investments which we have gained through the expansion of new technology. We are looking for investments in terms of new technology and producing new brands.
What is a success story that you are proud of?
We began as a very small company in Western Uganda where I was born. We grew our business slowly by trading and eventually entered into manufacturing. I am proud to be here now with this strong position the company holds in Uganda today.
Do you have a final message?
The message I would like to give to my fellow investors is to always have new creations for the development of our country. I came from nowhere and now find myself a very big investor in the country. It comes from initiative. I am very happy to be the company we are now.
What is your vision for the company in 5 years’ time?
In 5 years’ time we want to be very big investors. We have a lot of new proposals that we are looking forward to researching. Because we have been successful, we are looking to expand our business and we are expecting to be at the next level.
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