Opinions - Diageo: solve Kenya's drink problem with cheap beer

[Pondlife]

http://www.guardian.co.uk/business/2...ernationalnews

Diageo: solve Kenya's drink problem with cheap beer

Simon Bowers, The Guardian,
Tuesday December 11 2007

The solution to problem drinking in some of the poorest parts of Africa is to flood troublesome districts with ultra-low-cost beer, according to the world's biggest alcoholic drinks group Diageo.

The counter-intuitive proposal offers an affordable alternative to the high-strength and often toxic moonshine prevalent in many slums and rural communities.

After early signs of success for a pilot project in Kenya, Diageo's East African Breweries (EAB) has begun discussions with other governments struggling with similar problems of illicit alcohol. Inquiries have come from South Africa and a number of west African countries.

In Kenya illicit alcohol is estimated to account for about half of consumption. Drink is linked not just anti-social behaviour but also to acute health problems from toxic substances used to fortify illicit spirits. The incidence of drink-related blindness and death is said to be extremely high.

Three years ago Diageo persuaded the Kenyan government to collaborate on the initiative by reducing duty on a new budget beer brand, Senator Keg. Positive results from the project led to ministers last year waiving all duty on Senator Keg, which sells at about 10p for a 330ml glass - only slightly more than local moonshine. The beer is about 6% alcohol, compared with illicit spirits at around 40% to 50%, but it has nevertheless proved popular. Ken Kariuki, EAB's director of corporate affairs, said Senator Keg now accounts for about 5% of beer drunk in Kenya. Production costs are kept down by offering the product in keg only, dispensing with packaging and using locally grown barley. Profits are "negligible", Kariuki said.

Diageo last month met with officials at the Department for International Development to share its plans to replicate the Kenyan project elsewhere in Africa. The idea is said to have been well received.

Last week Kenyan officials briefed the World Health Organisation about the benefits of Senator Keg, although they conceded it remained a costly drink for the very poorest communities.

The drinks industry opposes growing calls for duty hikes to curb anti-social behaviour and health problems. Last month the Nuffield Council on Bioethics published a paper calling on the government to take up WHO advice and use tax rises to curb excessive drinking.