End of an Era for Tusker? Beer First Brewed 103 Years Ago Could Stagger Into Oblivion

Tusker Lager drinkers in the region are holding their breath, wondering if their favourite beer will still be on the shelf the next time they swing into their favourite local watering hole. This is if UK-based Diageo Plc, majority owner and the financial muscle behind East African Breweries Limited(EABL), makes good its threat to offload its majority stake (65%) in Kenya-based Brewer.

Diageo Plc could dispose of its shares in EABL Group as part of its US$ 500 million cost-cutting program to fight off effects of US tariffs, sluggish demand worldwide including East Africa and a reduction in drinking habits in key markets.

Speculation over the UK Group’s planned divestiture from Kenya comes against recent tough measures in the East African country’s to prohibit the sale and consumption of alcohol, including raising the minimum age limit for alcohol consumers to 21 years from 18 years. Shares in the London-listed company have fallen 24% over the past year.

Diageo has yet to confirm it is selling off its stake in EABL. However, analysts said Diageo’s Kenyan brewing business, East African Breweries Limited (EABL), could be a candidate for sale. EABL stands out because it is Diageo’s last major asset remaining in Africa.

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The global brewer has already offloaded its stake in several African brewing operations as part of its move to an “asset-light” model in markets with greater currency volatility. Diageo reported that its net sales rose 2.9% to $4.4bn in the first three months of 2025. The group’s US sales rose 5.9%, as retailers and distributors stockpiled imported spirits in anticipation of President Donald Trump’s tariffs.

In February, Diageo scrapped its target of between 5% and 7% medium-term sales growth, blaming uncertainty over US tariffs and weak demand in key markets.  However, Diageo lowered the estimated impact of tariffs on its operating profits to US$150 million a year. It had previously forecast a $200mn hit. Diageo said it expected to be able to mitigate half of the $150mn figure but did not specify how it would do this.

Diageo says its cost-cutting drive will involve adopting a more agile global operating model that is powered by its digital capabilities.

Tusker remains one of the most enduring brands and popular alcoholic beverages in Eastern Africa. With the expected exit of Diageo, Tusker could join a growing list of popular consumer brands of yesteryear that have since disappeared from the shelves and counters.

EABL’s financial results for the full-year ended 30^th June 2025 shows that the brewer’s net profit was up 12% to KSh 12.2 billion compared to Ksh 10.9 billion in 2024. Net sales increased to KSh 128.8 billion in 2025 from KSh 124.1 million, a 4% jump. EABL’s pre-tax profit hit Ksh 19.3 billion in 2025 from KSh 16.8 billion in 2024 while Earnings per Share, an indicator of a firm’s profitability was up 16% from KSh 10.30 in 2024 to Ksh 11.

> The Astonishing Value of Tusker Beer Brand

Tusker lager has an alcohol content of 4.2% by volume, 4.2 calories by volume, 110 per 12FL.OZ Fat and Carbohydrates of 6.6 per 12 FL. OZ Brewed using Kenya’s finest ingredients. Tusker is as Kenyan as it can get. It is a gold liquid that embodies what makes it truly unique. Every bottle has carefully selected ingredients that revel in the magic that makes them right for each other oozing great heritage that dates back over 100yrs ago.

Crowned by refined refreshment, the taste of this beer has never changed over the years, refreshing, and with a taste that is perfectly balanced. It is available in a 500ml amber-colored bottle, a 500ml Can, and 30/50-liter keg.

Tusker lager was first brewed in 1922 with the first order made at the then Exchange Bar, at the Stanley Hotel. EABL’s margins have been steadily declining in recent years following heavy taxation and excessive regulation on the business.

As much as EABL has passed on these tax implications to the final consumer, sales volumes in Kenya have been declining. The brewer has argued that Consumers move to cheaper beers and their illicit counterparts to escape the tax which poses a threat to volume growth for the brewer.

Weaker economic trends and pressure on real growth in consumer income has pushed the middle and lower income consumer globally, shifting consumption to more affordable products to either value beers or illicit brews. Tanzania has stood out as the company’s fastest growing market delivering continuous double-digit growth. In Uganda, the main drivers are mainstream spirits and value beers.

EABL’s current revenue contribution has ranked Kenya, ahead of Uganda and Tanzania. The flagship Tusker brand is gradually losing its grip as continued consumption of spirits become entrenched as the favourite for the vibrant young population.

Figures indicate that mainstream spirits growth has consistently outperformed the beer category. Analysts expect a diminished per capita alcohol consumption due to slower growth in consumer disposable income on the back of inflationary pressures and heavy indirect taxes.

World’s Largest Beer Companies

Consumption in the upper income bracket remains stuck on local and international premium brands. According to data from BarthHaas, a German hop trader, the world’s top 40 brewing companies in 2024 were led by AB InBev with a whopping 495.49 million hectoliters brewed.

In second place with 240.7 million hectoliters was the Netherland’s Heineken. China Res. Snow Breweries clinched third place with 108.8 million hectoliters produced in 2024.

The top three companies each saw a slight decline in output in 2024, they still accounted for more than half of the total output from all 40 list-makers. The most noteworthy shift in 2024’s ranking was the reappearance of Baltika, the biggest brewer in the Russian Federation.

Germany claimed six spots — more than any other one country — on the top 40 list. China and Japan were both the next most heavily represented countries, each securing four positions in the ranking.

Full list of the world’s largest beer companies by output in million hectolitres below.

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