Hennessy sees Kenya as growth frontier as cognac sales start
By Samuel Gebrem - Jul 26th, 10:34
Hennessy, the world’s largest maker of cognac, has started distributing its products in Kenya to tap Africa’s second-largest luxury-goods market.
The company, a unit of Paris-based LVMH, began distributing its products in the Kenyan capital in May and plans to use the city as a hub for regional distribution, CEO Bernard Peillon said in an interview in Nairobi. A bottle of Hennessy cognac retails for as much as 117 000 shillings ($1 127) in the city’s shops, the company said.
“Kenya is a boost market, the next emerging market frontier for us,” Peillon said. The company is targeting “double-digit” sales growth, he said, without specifying targets.
Kenya was Africa’s second-largest market for luxury goods in 2016, with revenue of about $500m, up 25% from a year earlier, according to a report by New World Wealth, a Johannesburg-based research group.
The country ranked behind South Africa’s $2.3bn market and ahead of Nigeria, it said. Brands like Hennessy are expanding their reach on the continent to tap into growing numbers of middle-class and rich people.
Kenya, where luxury brands including Bentley, Porsche and Rolex are already available, has 9 400 dollar millionaires, the fourth-highest number behind South Africa, Egypt and Nigeria, according to the New World Wealth report.
About 7 500 new millionaires will emerge over the next decade in the East African nation, the third-fastest pace on the continent after Ethiopia and Mauritius, according to the 2017 Wealth Report compiled by London-based Knight Frank.
Hennessy sells cognac in 140 countries, including South Africa and in Nigeria. While the continent is experiencing double-digit revenue growth, it accounts for less than 10% of the global market, Peillon said.
“Our role is to figure out what might happen in the world, to have a vision of what could become of Kenya, and we are positive,” Peillon said. “I am here in Kenya, so it is a clear sign of commitment and of interest.” Fin24.com
Sainsbury’s is playing the long game
21/11/2017 - 13:34
Sainsbury’s management appeared unphased after emerging as the underperforming grocer this quarter. Should investors be worried? In the short term, Sainsbury’s may struggle, but they have solid long term prospects.
Shoppers set to spend over £10bn in this year’s Black Friday bonanza
21/11/2017 - 11:47
Higher prices and increased retailer participation will drive Black Friday spend this year with total sales over the period set to rise 3.8%.
This year’s Black Friday promises to be ‘best ever’
21/11/2017 - 11:26
Economist Mike Schussler said he expects to see large numbers of consumers spending on Black Friday despite the dire economy.
Black Friday, Cyber Monday 2017 reflect growing digital evolution and appetite for seamless digital experiences
21/11/2017 - 11:16
With digital transformation initiatives permeating everything business does, the Black Friday and Cyber Monday period this year is expected to illustrate just how far online retailers have come in embracing Availability.
What are South Africans expecting this Black Friday
21/11/2017 - 11:03
We’ve all heard the stories about Black Friday in the US - all the latest goods at crazy low prices - but are South Africans experiencing the biggest day on the shopping calendar in the same way? Kevin Tucker, Founder and CEO of PriceCheck, Africa’s most popular comparison and discovery service, says there’s no doubt about it.