Consumer preferences and market potential for sorghum based clear beer in Tanzania

Type Journal Article - Journal of Brewing and Distilling
Title Consumer preferences and market potential for sorghum based clear beer in Tanzania
Author(s)
Volume 4
Issue 1
Publication (Day/Month/Year) 2013
Page numbers 1-10
URL http://www.academicjournals.org/journal/JBD/article-full-text-pdf/AD5438E258
Abstract
This paper assessed the influence of consumers on sorghum based clear beer (Eagle) value chain in
Tanzania. The specific objectives were to assess consumers’ preferences and market potential of Eagle
beer in Tanzania. The study areas were Moshi Rural and Karatu Districts in Kilimanjaro and Arusha
regions respectively in Northern Tanzania. In these regions, the Eagle beer was launched for the first
time by the manufacturers, that is, Tanzania Breweries Limited (TBL) in 2007. The respondents were
selected purposely from different drinking outlets in Moshi Rural and Karatu districts. The findings
show that the majority of the Eagle consumers were males, 87% in Moshi Rural and 93% in Karatu
districts, respectively and their mean age was 36 years. The educational level of most of the consumers
was primary education that is 63% for Moshi Rural and 67% for Karatu districts, respectively. The
majority of consumers were married that is 73% in Moshi Rural and 60% in Karatu districts respectively.
Most consumers shifted to Eagle due to reasonable price followed by its taste. The mean beer
consumption was 20.5 bottles (500 ml) per week for Moshi Rural district consumers and 32 bottles per
week for Karatu district consumers. Most preferred drinking outlet in Moshi Rural was bar (43%)
followed by grocery stores (33%) whereby in Karatu, the most preferred outlet was grocery store (53%)
followed by bars (43%). Most Eagle consumers shifted from drinking other beer brands and very few
shifted from drinking spirits and locally produced beer or wines. However, 83% of Eagle consumers in
Moshi Rural and 86% in Karatu districts respectively were consuming TBL products before switching to
Eagle beer. The remaining were consuming non-TBL products and local drinks. The logistic regression
analysis whereby consumers’ willingness to buy (WTB) Eagle beer was a dependent variable, showed
that consumers’ taste of Eagle beer, consumers’ preference, grocery stores and bars were statistically
significant. Log-linear regression analysis results whereby Eagle beer weekly consumption was a
dependent variable showed that consumers’ taste and preference of Eagle beer and household income
were statistically significant. Therefore, it is concluded that price, taste, preferences and household
income had influence on Eagle beer consumption in Moshi Rural and Karatu districts respectively. It is
therefore recommended that more marketing and promotion should be done in order to capture the
market share that is still enjoyed by locally produced drinks and non-TBL products. However, care
should be taken as this might cannibalize other TBL brands. Hence, as long as Eagle market is there,
TBL will continue to buy sorghum from farmers and therefore farmers’ income will be improved.

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