Question: Introduction Kasapreko Company Ltd
Introduction Kasapreko Company Ltd. is one of Ghana’s premier beverage distributors. It was the first
Ghanaian-owned beverage manufacturer with more than 600 employees. Building off the success of
products such as Alomo Bitters and Kasapreko Gin. The company has developed both locally and
internationally, generating approximately $70m in revenue. Kasapreko distributes its brands throughout
the West Africa sub region with a strong network of local distributors. Investment and tax climate
Increased inflation and devaluation of the Ghanaian cedi since late 2013 has dampened Ghana’s earlier
macroeconomic success story. Ghana’s power sector, especially on the distribution side, remains one of
the biggest factors negatively affecting the economy. In 2015, the government signed a three-year disk
$918 million extended credit facility agreement with the International Monetary Fund (IMF) in an effort
to stabilize Ghana's struggling economy. Under the IMF program, inflation has declined but the
economic situation remains difficult, with a fiscal deficit of at least nine percent and a debt-to-GDP ratio
of 73 percent in 2016. 3 Ghana will likely seek an extension of the IMF program as the new government
works to renegotiate targets to ensure long term economic success. Multiple factors are hindering
foreign direct investment. Among the major ones are burdensome bureaucracy, weak productivity,
costly and difficult financial services, underdeveloped infrastructure, ambiguous property laws,
unreliable power and water supply, and an unskilled labour force. Despite these challenges, Ghana's
abundant raw materials (gold, cocoa, and oil/gas), good governance, political stability, and policy
reforms make it stand out as one of the better locations for investment in sub-Saharan Africa. Among
the most promising sectors are agribusiness, food processing, textiles and apparel, downstream oil, gas,
and mineral processing, as well as the energy, especially renewable energy, and mining-related service
subsectors. Business Case Kasapreko Company Limited: From gold to beverages Dr. Kwabena Adjei
founded Kasapreko in 1989 in his garage in Nungua, a suburb of Accra, and started with 5 people. He did
not have a passion for beverages, but he had the right sense of business opportunities. The alcohol
business was a niche in the 1980s in Ghana, and 4 Nungua was the hub of gin making. Dr. Adjei was
initially into the gold business but due to competition and threats, he gave it up and ventured into the
beverage (alcohol) business to bridge a gap in the market. Although Gin had been the biggest and most
popular product in the brewery business, most breweries were just not interested in standardised
packaging. Most breweries made use of varied packaging at different points in time, making
identification of their products difficult without their logo. Contrary to his competitors, Dr. Adjei decided
to pursue a differentiation strategy. He introduced a new flavor which he sourced from London and
standardised his bottle sizes. Customers started to recognize his products as a “serious” brand and the
company received increased attention. Dr. Adjei also started to standardise his packaging boxes, but the
production of these was still manual. A few more flavours were added, and many failed, leaving only a
few that survived in the long-term. The growing demand for quality alcoholic beverages had to be met
and Kasapreko was at the right place at the right time. Kasapreko’s Gin was the foundation of the
company since Gin dominated a major share of the alcohol market in Ghana for a long time. People used
gin for a variety of things in terms of consumption, including traditional rites. Although Kasapreko’s Dry
Gin was the groundbreaker for the firm’s success, Alomo Bitters has become the flagship and 5 highest
selling product of the company. Consumers' love for Bitters made Kasapreko venture into the Bitters
market and eventually commercialized its production. The birth of Alomo Bitters as a product is unique.
In his passion to give consumers the best Bitters, Dr. Adjei met with the Centre for Scientific Research
into Plant Medicine in Mampong Akuapem in the early 1990s. The Centre produced herbal medicines
, and the idea was to combine herbal medicine with alcohol. After three years, their collaborative
research emerged and led to the development of herb related alcoholic bitters that cured various
diseases - Alomo Bitters. One of its main unique selling points was its aphrodisiac properties. Business
Model: Creating a unique African brand In 2018, Alomo bitters was twenty years on the market. The
bitters were the first commercialized herbal drink from Ghana. Some businesses have tried to emulate
both the business model and the bitters’ flavor, nevertheless, they failed. So, what makes Kasapreko’s
business model outstanding? 6 Key Success Factors of Kasapreko Quality …is our hallmark, we ensure
that we are serving the right grade of products. We take the whole processes very seriously, from input
through production to storage. Consistency …ensuring that we invest in the right machinery and
technology to be able to offer constant and consistent production. Variety Ability to produce new SKUs
to soothe our consumer’s needs and tastes. e.g., lime cordial mixer, K2O whisky (first whisky in a sachet
to be produced and sold in Ghana). Affordability and accessibility Ensuring that our products are
affordable to our consumers through building good relationships with distributors nationwide and
ensuring that the products are available in all parts of the 7 Country Loyalty Remaining loyal to
Ghanaians is our main success factor. That is what inspired the setting up of this business. In the ’80s
there was a demand for spirit products. Dr. Kwabena Adjei wanted to produce something affordable but
of high quality as to meet the needs and demands of Ghanaians. Competition has not been successful at
reaching Kasapreko’s high-end reputation, because “we believe they have missed our mark of quality
products and pricing”, Kwofie says. Instead, Kasapreko offers both alcoholic and non-alcoholic
beverages across a range of more than 10 different product categories. The company has six leading
brands in terms of volume: Alomo, K20 Whisky, Kasapreko Gin, Lime Cordial, Tonic Wine, and Carnival
Strawberry Liquor. Alomo bitters is the flagship brand and provides the growth the business needs,
however, the perpetuation of the company’s differentiation strategy into the nonalcoholic beverage
segment is also putting the company in a more favourable position against competition. In 2015,
Kasapreko ventured into Carbonated Soft Drinks (CSD) and added product lines such as Royal Cola, Royal
Apple, Royal Orange, and Lemon Lime. Royal Cola is marketed as an affordable and high-quality
alternative to Coca Cola with inputs that are sourced from Germany. Kasapreko’s most recent product 8
innovation is Choco Malt – a malt drink with chocolate flavor which is the first of its kind in the Ghanaian
market. Kasapreko segments customers by product category, market trends, and pricing. The company’s
products are mainly targeted at consumers who engage in hard manual or industrial work. Currently,
about 80% of Kasapreko’s customers are males, although variants of Alomo were introduced to attract
other consumers that did not enjoy the bitter taste of the classic Alomo drink. ‘Carnival’, for example, is
the prime product for female consumers in Ghana. Tonic wine also picked up quite well among other
clientele in Ghana. Challenges Kasapreko faces the challenge of keeping up with the changing taste of
the youth. The company thus introduced ‘Opeimu’ and three variants of its flagship Alomo brand to
attract a younger clientele that does not like the very bitter taste, high levels of alcohol or that is simply
more adventurous: ‘Alomo Black’ has almond extracts infused in it and presents a unique aroma, ‘Alomo
Silver’ has lower alcohol levels (35%) and is less bitter, and finally Alomo Gold has fruity extracts which
makes it a little sweet and has lower alcohol levels (30%) as well. Although the oldest of these 9 variants,
‘Alomo Silver’, is only about a year and a half on the market, it is doing well in terms of volume.
Kasapreko’s brands are unique and stand for high quality. However, appealing to different age groups,
gender, and taste preferences requires effective positioning and tailored marketing strategies.
Kasapreko aims to follow the footsteps of global African spirit brands such as Amarula or Savanna Dry
from South Africa and underwent an expensive rebranding that was carried out by a South African
Introduction Kasapreko Company Ltd. is one of Ghana’s premier beverage distributors. It was the first
Ghanaian-owned beverage manufacturer with more than 600 employees. Building off the success of
products such as Alomo Bitters and Kasapreko Gin. The company has developed both locally and
internationally, generating approximately $70m in revenue. Kasapreko distributes its brands throughout
the West Africa sub region with a strong network of local distributors. Investment and tax climate
Increased inflation and devaluation of the Ghanaian cedi since late 2013 has dampened Ghana’s earlier
macroeconomic success story. Ghana’s power sector, especially on the distribution side, remains one of
the biggest factors negatively affecting the economy. In 2015, the government signed a three-year disk
$918 million extended credit facility agreement with the International Monetary Fund (IMF) in an effort
to stabilize Ghana's struggling economy. Under the IMF program, inflation has declined but the
economic situation remains difficult, with a fiscal deficit of at least nine percent and a debt-to-GDP ratio
of 73 percent in 2016. 3 Ghana will likely seek an extension of the IMF program as the new government
works to renegotiate targets to ensure long term economic success. Multiple factors are hindering
foreign direct investment. Among the major ones are burdensome bureaucracy, weak productivity,
costly and difficult financial services, underdeveloped infrastructure, ambiguous property laws,
unreliable power and water supply, and an unskilled labour force. Despite these challenges, Ghana's
abundant raw materials (gold, cocoa, and oil/gas), good governance, political stability, and policy
reforms make it stand out as one of the better locations for investment in sub-Saharan Africa. Among
the most promising sectors are agribusiness, food processing, textiles and apparel, downstream oil, gas,
and mineral processing, as well as the energy, especially renewable energy, and mining-related service
subsectors. Business Case Kasapreko Company Limited: From gold to beverages Dr. Kwabena Adjei
founded Kasapreko in 1989 in his garage in Nungua, a suburb of Accra, and started with 5 people. He did
not have a passion for beverages, but he had the right sense of business opportunities. The alcohol
business was a niche in the 1980s in Ghana, and 4 Nungua was the hub of gin making. Dr. Adjei was
initially into the gold business but due to competition and threats, he gave it up and ventured into the
beverage (alcohol) business to bridge a gap in the market. Although Gin had been the biggest and most
popular product in the brewery business, most breweries were just not interested in standardised
packaging. Most breweries made use of varied packaging at different points in time, making
identification of their products difficult without their logo. Contrary to his competitors, Dr. Adjei decided
to pursue a differentiation strategy. He introduced a new flavor which he sourced from London and
standardised his bottle sizes. Customers started to recognize his products as a “serious” brand and the
company received increased attention. Dr. Adjei also started to standardise his packaging boxes, but the
production of these was still manual. A few more flavours were added, and many failed, leaving only a
few that survived in the long-term. The growing demand for quality alcoholic beverages had to be met
and Kasapreko was at the right place at the right time. Kasapreko’s Gin was the foundation of the
company since Gin dominated a major share of the alcohol market in Ghana for a long time. People used
gin for a variety of things in terms of consumption, including traditional rites. Although Kasapreko’s Dry
Gin was the groundbreaker for the firm’s success, Alomo Bitters has become the flagship and 5 highest
selling product of the company. Consumers' love for Bitters made Kasapreko venture into the Bitters
market and eventually commercialized its production. The birth of Alomo Bitters as a product is unique.
In his passion to give consumers the best Bitters, Dr. Adjei met with the Centre for Scientific Research
into Plant Medicine in Mampong Akuapem in the early 1990s. The Centre produced herbal medicines
, and the idea was to combine herbal medicine with alcohol. After three years, their collaborative
research emerged and led to the development of herb related alcoholic bitters that cured various
diseases - Alomo Bitters. One of its main unique selling points was its aphrodisiac properties. Business
Model: Creating a unique African brand In 2018, Alomo bitters was twenty years on the market. The
bitters were the first commercialized herbal drink from Ghana. Some businesses have tried to emulate
both the business model and the bitters’ flavor, nevertheless, they failed. So, what makes Kasapreko’s
business model outstanding? 6 Key Success Factors of Kasapreko Quality …is our hallmark, we ensure
that we are serving the right grade of products. We take the whole processes very seriously, from input
through production to storage. Consistency …ensuring that we invest in the right machinery and
technology to be able to offer constant and consistent production. Variety Ability to produce new SKUs
to soothe our consumer’s needs and tastes. e.g., lime cordial mixer, K2O whisky (first whisky in a sachet
to be produced and sold in Ghana). Affordability and accessibility Ensuring that our products are
affordable to our consumers through building good relationships with distributors nationwide and
ensuring that the products are available in all parts of the 7 Country Loyalty Remaining loyal to
Ghanaians is our main success factor. That is what inspired the setting up of this business. In the ’80s
there was a demand for spirit products. Dr. Kwabena Adjei wanted to produce something affordable but
of high quality as to meet the needs and demands of Ghanaians. Competition has not been successful at
reaching Kasapreko’s high-end reputation, because “we believe they have missed our mark of quality
products and pricing”, Kwofie says. Instead, Kasapreko offers both alcoholic and non-alcoholic
beverages across a range of more than 10 different product categories. The company has six leading
brands in terms of volume: Alomo, K20 Whisky, Kasapreko Gin, Lime Cordial, Tonic Wine, and Carnival
Strawberry Liquor. Alomo bitters is the flagship brand and provides the growth the business needs,
however, the perpetuation of the company’s differentiation strategy into the nonalcoholic beverage
segment is also putting the company in a more favourable position against competition. In 2015,
Kasapreko ventured into Carbonated Soft Drinks (CSD) and added product lines such as Royal Cola, Royal
Apple, Royal Orange, and Lemon Lime. Royal Cola is marketed as an affordable and high-quality
alternative to Coca Cola with inputs that are sourced from Germany. Kasapreko’s most recent product 8
innovation is Choco Malt – a malt drink with chocolate flavor which is the first of its kind in the Ghanaian
market. Kasapreko segments customers by product category, market trends, and pricing. The company’s
products are mainly targeted at consumers who engage in hard manual or industrial work. Currently,
about 80% of Kasapreko’s customers are males, although variants of Alomo were introduced to attract
other consumers that did not enjoy the bitter taste of the classic Alomo drink. ‘Carnival’, for example, is
the prime product for female consumers in Ghana. Tonic wine also picked up quite well among other
clientele in Ghana. Challenges Kasapreko faces the challenge of keeping up with the changing taste of
the youth. The company thus introduced ‘Opeimu’ and three variants of its flagship Alomo brand to
attract a younger clientele that does not like the very bitter taste, high levels of alcohol or that is simply
more adventurous: ‘Alomo Black’ has almond extracts infused in it and presents a unique aroma, ‘Alomo
Silver’ has lower alcohol levels (35%) and is less bitter, and finally Alomo Gold has fruity extracts which
makes it a little sweet and has lower alcohol levels (30%) as well. Although the oldest of these 9 variants,
‘Alomo Silver’, is only about a year and a half on the market, it is doing well in terms of volume.
Kasapreko’s brands are unique and stand for high quality. However, appealing to different age groups,
gender, and taste preferences requires effective positioning and tailored marketing strategies.
Kasapreko aims to follow the footsteps of global African spirit brands such as Amarula or Savanna Dry
from South Africa and underwent an expensive rebranding that was carried out by a South African
