Company description

The spirits industry is set for growth following beer’s massive FDI-led growth. An estimated 25 million liters of commercially manufactured liquor products are sold in Ethiopia with a market value of $115 million. A variety of locally produced commercialized liquor is widely accessible and consumed mainly in cities and towns. Imported liquors are comparatively minuscule in volume with only 921,358 liters sold in 2017 but typically sold at a much higher margin. Ethiopia’s formal liquor market has to grow 3x to reach the levels of Kenyan formal liquor consumption.

National Alcohol and Liquor Factory (NALF) is by far Ethiopia’s largest liquor producer while also serving strategic export markets. The company has achieved over 58% market share. The company has two factories.

•  Sebeta factory sits on ~ 18,000 sq.m of land
• Mekanisa factory sits on ~16,000 sq.m of land
• About 90% of the production line at both sites are less than four years old.

Overview of business units

• Liquor: NALF produces and distributes 14 different liquor products (Baro’s Dry Gin, Ouzo, Double Ouzo, Fernit, Bitter, Aperetif, Cognac, Brandy, Coffee, Lemon, Pineapple, Orange, Pernod, Supermint). The production capacity of Liquor is 22 million liters per annum
• Pure Alcohol: It is produced in the first step of the distillation process and has alcohol content of 96% (has a production capacity of 11 million per annum).
• Denatured Alcohol: This is a by-product of the full distillation process and has an alcohol content of 90%-95%