How to Start Wines and Spirits Business in Kenya

Morality aside, a lot of Kenyans drink religiously meaning there are huge profits to be made in this business. And you can easily confirm this by peeping into the latest wines and spirits wholesale prices in Kenya and then comparing the prices that wholesalers give retailers and the average retail prices.

Actually according to my source, the minimum profit you can make per bottle is Ksh.30 so do your math considering that you are dealing with fast moving goods.

Wholesalers make more because they are able to move bigger volumes.

You can either start selling at wholesale level or retail, but wholesale is the best course because the profits are much higher than retailing, the risks are also low.

With a Ksh.100,000 stock you are capable of making Ksh.1,500 to Ksh.5,000 per day as profit.

Most small businesses make an average of Ksh.30,000 – Ksh.100,000 per month. Wholesalers make Ksh.5,000 – Ksh.20,000 per day.

Before you decide to start the business ensure that the area has enough population to consume your product.

The best towns to start wines and spirits business in Kenya include Nairobi, Nyeri, Kisii, Mombasa, Mtwapa, Busia, Kitengela, Meru, Maua and Thika.

Before we talk about what is required to start let us first take an overview of the industry.

*Overview*

According to a statement by NACADA, about 15 million Kenyans drink regularly. 12 million drink daily spending an average of Ksh.100 on each occasion.

In 2010 the Alcohol Drinks Control Act (commonly known as Muthutho Law) was passed to regulate operations in this industry.

Market for wines and spirits in Kenya is growing because majority find them cheaper than beer whose price has been rising in recent years due to implementation of SIN TAX.

Sit-in customers spend an average of Ksh.300 per day while takeaway customers spend at least Ksh.210 per day.

*How To Get Started*

*Location*

You first need to identify the ideal location and because alcohol consumption is a leisure activity many clients prefer to frequent establishments that are easily accessible from the main road.

It is advisable to choose a location that has high traffic.

Avoid setting up your business near schools as this is against the law.

*Competition*

There is intense competition especially in urban areas and for this reason you need to ensure that your strategy is on point.

Scan the market conditions and set a realistic price. You also need to keep track of changes in market trends if you want to remain competitive.

*Licensing*

Licensing is the most important aspect of starting a wines and spirits shop. The most important license of all is liquor license which costs Ksh.50,000.

Other licenses include:

*Business License from County Council – Ksh.3,500

*Health Certificate – Ksh.3,000

*Approval by NEMA – Ksh.3,000

*MCSK License – Ksh.3,000

*Requirements for setting up*

The requirements for setting up depend on your long-term goals and capital constraints.

For instance, if you don’t have much capital you can look for a 10×10 ft room and set up a simple wines and spirit takeaway shop.

With more capital you can set up a sit-in facility with chairs, tables and shelves.

On average rent prices range from Ksh.10,000 – Ksh.50,000 depending on location.

*Cost Breakdown*

Licenses – Ksh.70,000

Furniture (Shelves, Display area, Tables, Chairs etc.) – Ksh.50,000

Stock (Inventory) – Ksh.50,000

Miscellaneous – Ksh.100,000

TOTAL – Ksh.270,000

A lot of new owners ask about the most reasonable amount to invest in stock, but there’s no correct answer as its contingent on so many factors.

However, my trusted source says anything from Ksh.50,000 worth of stock going up is fantastic. Then top up slowly by slowly as you learn the ropes of the industry. The quantity itself will be determined by the prevailing wine and spirits prices list as of the day of buying the initial stock.

To get the best deal, compare the wines and spirits wholesale prices in Kenya from the various wines and spirits distributors and buy from the fairest.

This takes me now to the juicy part… here is a list of the most reputable wines and spirits distributors in Kenya.

*Wines And Spirits Distributors In Kenya*

*NAIROBI REGION*

Jays Wines Distributors Limited Nairobi Kenya – 0705 570066

Mwalimu Wine Agency Nairobi City – 0701 222648

Kenya Wine Agencies – 0722 202041

EABL Gift Shop – Ruaraka – 0727 224 444

Rwathia Kariokor – 0726 698 383

Ishano Distributors Buruburu / Embakasi – 0721847740

Veew Distributors – Huruma/ Pangani/Eastlands/ Umoja – 0722933640

*CENTRAL REGION*

Kamahuha Ruiru – 0723766502

Muranga Wholesalers – 0721530949

GK Kamuri ,Sagana/ Karatina – 0722285490

Wamuti Distributors – Nyeri & Nanyuki – 0724113874

Mbote Distributors – Gatundu – 0713222168

Pekay Brothers – Thika – 0727820448

*EASTERN REGION*

Laare Springs – Isiolo & Meru – 0700900321

Mt.Kenya Distributors – Embu, Meru, Nkubu – 0711307114

Lenairoshi Maralal – 0728 687040

Benjuma – Naivasha & Njabini – 0720781917

Santafee Suppliers Limited -Kibwezi/Mtito – 0724041521

*COAST REGION*

Kioko Enterprises Malindi – 0722253096

Mombasa Tamasha – 0726127819

Tamasha Voi – 0739985007

Kizingo Beer Southcoast – 0725795962

Shiva Mombasa Ltd – 0733934711

Shan E Punjab-Diani South Coast – 0724138000

*WESTERN, NYANZA & RIFT VALLEY*

Ayoti Distributors – Kisumu – 0722671279

Busia Bottlers Limited – 0723772303

Kavuca Holdings – Kakamega – 0720204880

Supplies And Marketing Co. Ltd – Kisii / Migori / Homabay – 0720522611

Kericho Guest Limited – 0737 024 137

Happyland Investments Limited – Bomet & Narok – 0722908500

Cyden Enterprises – Eldoret/ Iten – 0720994705

Komoto Agencies – Eldoret – 0715683 321

Winam -Kitale Town – 0721330249

Mbig Ltd.-Bungoma – 0726400263

Mahungu Distributors – Lokichar – 0724725608

Epuruto Distributors – Lodwar – 0721916642

Crested Acres Limited – Nakuru – 0721521411

Moss – Olkalou Town – 0725513350

Most of the wines & spirits wholesalers in Nairobi city offer the best prices compared to upcountry dealers.

Then, Mwalimu Wine Agency’s and Kenya wine agencies price list seem to be somewhat on the lower side on bulk purchases.

The other wholesaler with best prices is the Jays Wines Distributors Limited Nairobi Kenya.

But don’t ignore the rest – you may be in for one or two surprises.

*Expected Challenges*

The first challenge you are going to face is intense competition. You will need to provide quality services and best prices in order to retain old customers who will in turn keep coming back with their friends.

You also need to appreciate the challenge that you can only open your business from 5.00pm – 11.00pm on weekdays and 2:00pm – 11:00pm on weekends and public holidays.

*Final Word*

As we always tell you, there’s no marathon race that has ever been won by those who did not start the race.

If you like the idea discussed above and you have what it takes to actualize it…then don’t wait to start…just do it.

For inquiries,
Contact us on WhatsApp or Call;

Timothy Angwenyi
Business Consultant

Justine Nyachieo
Business Man & Mentor

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