With sobolo, asana, and co, local beverage SMEs are promoting nation on the international stage

• Published date: 17 February 2019
• Publication title: Business and Financial Times

Every year in Ghana, there is a new beverage generating some buzz or an old one repositioning itself in the market to maintain top of mind awareness. The past year has been no exception. The time has come for the smaller beverage business owners to be given the necessary boost to gradually grow into the level of multinationals.

Research conducted in 2017 by Asoko Insight, Africa's largest online repository of privately-held company information indicates that on the average, Ghanaians spend around 42percent of their income on food and beverages alone; placing income growth at the core of the sector's success.

The government of Ghana projects that by 2021 the US$1,000- US$5,000 income segment will include 50percent of all households, up from around 30percent currently. Rising incomes have not only contributed to more expenditure, but have allowed Ghanaians to develop a taste for foreign drinks like branded beers and spirits instead of unbranded local drinks such as pito, palm wine, akpeteshie, and burukutu.

Man drinks beer

For about two decades and more, processed foreign carbonated and alcoholic drinks have been served at gatherings in Ghana. The importance of these drinks goes as far as marriage acceptance; in some families, some of these drinks are included in a woman's bride price. These drinks are also presented as part of Christmas hampers among other gift items.

In recent times however, the trend is taking another twist. It is becoming common place to see more local beverages like Asana, Sobolo, Pito, Palm wine served in clay pots and calabashes at festive occasions.

A few individuals are making efforts at branding drinks like Sobolo, Apio, pineapple juice and the like which is generating some excitement on the market. The upswing of Small and Medium Enterprises in beverage production is a revelation of the opportunities that abound for local manufacturing and the entire value chain. It is commendable that Ghanaians are venturing into the local beverage business while taking gradual steps in embracing the principles of business including branding, advertising, marketing among others.

However, there's a lot of work to be done if Ghana wants to remain relevant and be sought-after globally. Additionally, there will be a rippling effect on all members of this chain of business; bottling companies, transportation, advertising and the like when the SMEs are able to thrive in the Ghanaian economy.

Going global with Ghanaian beverages will mean that producers of...