SUM OF TWO EXTREMES
million cases between 1994 and
1998), thereby pushing production
capacity in Kumasi to the limits.
Besides, the purchase of ABC offered
Kumasi the opportunity to strength
en its position in the important
southern market (including the capi
tal Accra) in return for relatively low
distribution and production costs.
The merger between the two
breweries is not solely intended to
serve the greater glory of the Kumasi
Brewery. Despite some short
comings, ABC has built up a strong
position for its brand of the same
name in the draught beer segment
which is popular in the Greater Accra
Area. Draught beer accounts for ten
per cent of the total beer market and,
thanks to ABC Bubra and the recent-
ly introduced Star Draught, the mer
ged business has a market share of as 1
much as eighty per cent in this seg-
ment. Ben Afrifa, Marketing Director
of Ghana Breweries, therefore has no
plans for cutbacks in the lager
brands portfolio. "The ABC brands
now have fourteen per cent of the
beer market. That is something you
cannot and must not ignore. Each
Ghana Breweries is a company of
contrasts. "We are an old company
and a new company", says Mr Eson-
Benjamin. "The Kumasi Brewery has
existed since 1957 and ABC Brewery
since 1973, but Ghana Breweries is
brand new, born in 1998. We are still
in the midst of a process of amalga
mating two totally different brew
eries and cultures." The differences
are indeed big. On the one hand:
Kumasi Brewery, which in recent
years was a well-oiled, small but pro
fitable brewery with Star as its flag
ship brand. And on the other: ABC, a
loss-making brewery with enormous
overcapacity, too many employees
and a product quality that needed
improvement. The Achimota brew
ery's best known brands are ABC
Golden Lager and ABC Bubra, a
draught beer.
Displayed on the walls of Martin
Eson-Benjamin's office are the
awards won by Kumasi and ABC.
Distinctions that were presented to
both breweries for their services to
Ghana and to society. Mr Eson-
Benjamin shows awards that Kumasi
Brewery received from the Head of
State and other institutions for excel
lence in business, social relations and
contribution to the government in
1996 and 1997. "For the image of a
company in Ghana such awards are
of enormous importance. Last year,
as a result of activities related to the
merger, we had to focus our atten
tion on internal matters, but now we
are going to concentrate more on the
role that we must play in Ghanaian
society to ensure that our brewery
continues to be seen and recognised
as a good and responsible corporate
citizen and a major partner in
Ghana's progress."
DRAUGHT BEER
But in the case of ABC not everything
is negative. The brewery's big over
capacity is in fact a godsend for
Kumasi Brewery. In recent years,
sales of Star and Gulder have grown
substantially (from 2.2 million to 3.7
