Heineken Brewery has completed the acquisition of Komari Beverages, the supplier of Arada’s beverage products, marking a significant expansion of its presence in Ethiopia’s competitive beer market.
According to Capital newspaper, Arada Beer, a relatively new entrant in Ethiopia’s beer market, has quickly gained popularity among consumers.
The manufacturer, Komari Beverages, has successfully concluded negotiations to sell its factory to Heineken, solidifying the multinational’s growing influence in the country’s beverage sector.
Sources indicate that negotiations had been ongoing for several months. The two parties initially reached the final stage of talks in July 2024, but discussions were revisited following changes in the Ethiopian foreign exchange currency market that took effect the same month.
These changes likely impacted the terms of the deal, prompting both sides to reassess certain aspects before moving forward.
The official sale price is expected to be announced by the end of this month, with the formal handover of the factory taking place simultaneously.
Komari’s facility, located in the Cheki area of North Showa Zone in the Amhara Region, approximately 96 km northeast of Addis Ababa, has a production capacity of 27,000 bottles per hour.
The factory, which became operational just three years ago, was built by Ethiopian investors at a cost exceeding $29 million.
Despite its short tenure, Komari has managed to secure a significant market share, particularly through its Arada brand, which has resonated strongly with Ethiopian consumers.
Heineken, a global beer giant, first entered the Ethiopian market in 2011 by acquiring Harar and Bedele breweries from the government for $163 million.
With this latest acquisition of Komari Beverages, Heineken further strengthens its position in Ethiopia, where it already produces popular brands such as Walia, Harar, Bedele, and Heineken beers.
This move highlights the company’s commitment to expanding its operations in one of Africa’s fastest-growing economies.
Currently, Ethiopia is home to 12 breweries, with Heineken being the largest among them. The acquisition of Komari Beverages adds another major asset to Heineken’s portfolio in the country.
Ethiopia’s beer industry has a long history, with the first brewery, Saint George Brewery, being established 102 years ago.
Today, Saint George produces well-known Ethiopian brands such as Meta, Zebidar, and Raya beers, continuing its legacy in the local market under the umbrella of BGI Company.
The purchase of Komari Beverages marks a new chapter for Heineken and the Ethiopian beer industry, as competition heats up and international players continue to expand their footprint in the region.
Why are you exaggerating Arada’s performance, claiming success when the company has struggled to sell even 60,000 crates per month over the past year? The facts paint a different picture: Arada is saddled with a 450-million-birr debt from Dashen Bank and has failed to generate any profit for the past three years. On top of that, senior management misappropriated funds for personal gain, leaving the company unable to pay employee salaries.
Moreover, the investment figures you mentioned are inaccurate. The total investment, including the bank loans, amounts to no more than 16 million USD. Contrary to common belief, the company was not founded solely by Ethiopian investors. In fact, the majority of shares are owned by foreign investors based in Germany, with Ethiopians holding less than 15% ownership. Even the founders are not exclusively Ethiopian.
The factory’s condition is also far below acceptable standards. Both the civil works and machinery are subpar, with leaking roofs turning the facility into a flooded mess during the rainy season, while the floors have deteriorated into dust. The equipment is unreliable, unable to operate for 24 hours continuously, and the factory has never managed to maintain production for a full week, let alone a month. Operations were even suspended at one point due to the use of expired raw materials.
Please refrain from spreading misleading information. If you need more details, feel free to reach out, and I’ll be happy to provide further insight.
Thank you for your comment.