After 15 years of lapse, Pepsi products have been launched on the beverage market in Rwanda.
Pepsi launched recently in Kigali with agents getting display refrigerators to stock the sodas for retail sale. The launch, which was greeted with fanfare, has drawn the attention of the media both electronic and print. Charles Baribuganda, the Area Customer Service Manager, said billboards will be raised soon to advertise the brands which include Pepsi Cola, Mirinda Orange, Mirinda Fruity and Mirinda Pineapple.
Baribuganda said Pepsi, produced by Crown Beverages, is pleased to re-launch its products in Rwanda, in a market that is strongly considered the fastest growing economy in the East African Region.
“The Rwandan market is growing at an impressive pace and the country’s entrance into the East African Community made it possible for Pepsi Uganda to re-think towards this exciting market,” Baribuganda said.
The new and favourite brand, Mountain Dew will be waiting for a big launch a few months to come after other products have established themselves on the market according to Baribuganda
Pepsi does not need to do a lot of marketing for their brands in Rwanda. It only needs to do a lot of advertising for their presence and competitive distribution around the country because most people in Rwanda know and have tasted it before.
“I grew up in East Africa and the only soda I used to take was Mirinda Fruity. I did not find it here (Rwanda). The moment I saw it today, I felt so happy to have its taste again,” said Umaru Oluochi, a Kenyan living in Kigali.
According to Henry Rugamba, the marketing agency representative, the entry of Pepsi in Rwanda will offer the consumer a new portfolio of brands designed to meet the different tastes of the public.
“People want to try something new on the market,” he said.
Rugamba said the recommended retail price will be Frw300 per bottle opposed to Coca-Cola brands costing Frw250 a bottle.
Despite that Pepsi Cola and Mirinda Orange resembling Coca-Cola brands, Mirinda Fruity and Mirinda Pineapple are not a substitution to any brand in Rwanda, giving Pepsi Uganda a competitive advantage over them.
The Rwandan market has traditionally been served by the Coca-Cola brands manufactured by BRALIRWA, the sole Rwanda Breweries and soft drink manufacturer.
Rugamba admitted that the price is not Pepsi’s toughest challenge at hand. “Price does not give us a competitive advantage but at a certain market level, we still have a good chance.”
“We need to taste the new market by meeting the challenges and we will pull out to reconsider the products if they are not appreciated,” he underscored.
However, Baribuganda said the price could be revised after a lot of costs in bring the product in Rwanda plus taxes incurred are reconciled.
“But the cost of production, transport and taxes determine the price and we have tried to set the best price,” he said.
“We are confident though,” Rugamba said. “We have a different taste, and remember this is an export. But we still have a big sense of confidence that there is an open opportunity.”
Pepsi last appearance in Rwanda was shortly before the 1994 genocide.
Since then, only Coca-Cola has been operating in the Rwandan market as the only soda with a few other locally made beverages like the popular passion fruit juice Agashya.
BRALIRWA’s Commercial Director, Alexander Koch told The Independent that BRALIRWA was expecting competition at any time and believes competition is healthy.
“It is not a surprise and we are not afraid of competition. We will only keep our consumer preference.”
“Pepsi International has offered the franchise for Rwanda to Uganda. Straight forward, this means that we have to set up a plant in Rwanda in two years time.”
This could mean overtaking Coca-Cola at anytime.
However, BRALIRWA’s Koch said the company has a better competitive advantage to maintain the biggest market share.
“We have a huge and long standing market with a big distribution network, a strong brand of high quality and a highly motivated team.”
But still, Pepsi’s entrance into Rwanda means a lot to the Rwanda economy. Despite an increase on consumable products, jobs are expected to be created if a plant is to be fixed and the country will earn revenues in terms of taxes. Mundock Traders are currently the handling overall local distribution. “If Rwanda performs well; we consider extending to Burundi,” said Baribuganda.
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written by Ian Kariisa, March 25, 2009
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