Hennessy sees Kenya as growth frontier as cognac sales start
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
Iceland opens world’s first supermarket ice rink
14/12/2018 - 14:05
Iceland has introduced a new concept for Christmas – shopping on ice!
Superdry blames warm weather as shares plunge on warning
14/12/2018 - 10:02
Superdry shares plunged more than a third after the British fashion chain warned on profits for the second time in less than three months, blaming unusually warm weather for hitting sales of winter jackets and jerseys.
SPAR receives global recognition for plastic initiative
14/12/2018 - 09:27
SPAR Eastern Cape achieved global recognition for their commitment to reducing plastic pollution when they received an award at the SPAR International Conference last month.
Farm and factory gate inflation slows slightly
14/12/2018 - 09:00
Falling fruit and vegetable prices helped slow producer inflation in November.
Smartphone sales growth stalls while panel TVs soar during Black Friday week 2018 – GfK data
13/12/2018 - 15:42
Panel television sales soared in South Africa during Black Friday week, climbing by 66% to just over 93,000 units when compared to the same week in 2017, according to point of sale tracking data from GfK South Africa’s Weekly Monitor. This builds on the 47% growth over 2016 recorded during the week of Black Friday in 2017.