Advertise with fastmoving.co.za
 
 

Hennessy, the world’s largest maker of cognac, has started distributing its products in Kenya to tap Africa’s second-largest luxury-goods market.
Hennessy, the world’s largest maker of cognac, has started distributing its products in Kenya to tap Africa’s second-largest luxury-goods market.

Hennessy sees Kenya as growth frontier as cognac sales start

LIQUOR NEWS

By Samuel Gebrem - Jul 26th 2017, 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 

Read more about: retail | luxury | kenya | hennessy | cognac

Related News

Ikea to use only renewable and recycled materials by 2030
25/06/2018 - 11:08
Ikea, the world’s biggest furniture retailer, plans to use only renewable and recycled materials in its products by 2030, in the latest commitment by a global store group to reducing its impact on the environment.

Macy’s takes stake in tech retailer
25/06/2018 - 08:28
Macy’s has taken a minority stake in a company that helps emerging brands build out brick-and-mortar stores with minimal effort.

Google buys £414m stake in JD.com
22/06/2018 - 11:19
China’s largest retailer JD.com has launched a $550 million (£414 million) partnership with Google which will see the former sell products through Google Shipping across the world.

MySchool MyVillage MyPlanet wins big at the Loyalty Magazine Awards in London
21/06/2018 - 15:14
MySchool MyVillage MyPlanet scooped three major awards at the Loyalty Magazine Awards held in London recently. The fundraising programme was awarded Best CSR Initiative Linked to Loyalty, Best Long-Term Loyalty Programme and also received the prestigious Regional Loyalty Champions of the Year for Middle East & Africa award.

Online shopping grows in SA
21/06/2018 - 10:21
Although traditional retail stores dominate the South African market, consumers are choosing the online option for cheaper technical goods purchases.