Diageo and East African Breweries Ltd.: Tapping New Markets for Social Good Harvard Case Solution & Analysis

To optimize their effectiveness, shade cases must be printed in color. James Musyoki, Lemmy Mutahi, and Ken Kariuki, all from the East African Breweries Limited (EABL), a subsidiary of London-based Diageo, heard the intimidating news in the first week of December 2008. For the second time in six months, the Kenyan Finance Ministry had increased excise taxes on alcoholic beverages in an attempt to stop up the budget deficit of the country; the bill was expecting the President's signature.

The price increase would set EABL's Allsops, Citizen, and President Beers out of the reach of their target markets, and Musyoki, Kariuki, and Mutahi hoped that the increase would not affect the excise-exempt Senator Keg lager - a lower-income brew which had created considerable social and economical increases in Kenya since its launching in year 2004. What would it take to defend Senator Beer?

PUBLICATION DATE: July 07, 2009 PRODUCT #: 310010-HCC-ENG

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