Why your favourite tipple is likely to be fake

East African Breweries Ltd (EABL), the region's leading alcoholic beverage company, is grappling with an unprecedented rise in counterfeit and illicit alcohol.

The brewer has identified this as a critical risk to its business, consumer health, and government revenue, according to its latest integrated report.

EABL's 2025 annual report reveals a frustrating landscape for the legitimate alcohol industry, where illicit trade now accounts for a staggering 60 per cent of the total alcohol consumed in Kenya alone-a 27 per cent increase since 2022, as cited from a 2025 Euromonitor report within EABL's filings.

This proliferation of fake products, the report shows, is eroding the company's market share, damaging brand integrity, and posing severe public health risks.

The report pinpoints a confluence of macroeconomic pressures driving consumers toward cheaper, often illicit, alternatives.

"Slowed economic growth and macro-economic volatility" and "erosion of purchasing power" are listed as principal risks, creating a fertile ground for counterfeiters.

As disposable incomes shrink, consumers are trading down, making them vulnerable to unregulated and dangerously produced products that mimic legitimate brands. These counterfeit products often evade regulatory oversight, leading to potential contamination with harmful substances like methanol, improper labelling of alcohol content, and non-payment of taxes.

EABL states that this not only causes "harm to consumers" and "damages our corporate and brand reputation" but also results in substantial "financial and legal exposure" for the company and lost tax revenues for governments.

Faced with this escalating threat, EABL's report outlines a comprehensive, multi-faceted strategy to protect its products and consumers, moving beyond mere enforcement to a blend of technology, consumer education, and industry collaboration.

The company is embedding sophisticated security features directly into its packaging. The report states these measures are designed to "deter reuse, make our products more difficult to copy and enable rapid authentication," allowing both regulators and consumers to more easily identify genuine products.

EABL is actively monitoring the digital marketplace. The company runs an "online monitoring and takedown programme across high-risk e-commerce and social media platforms," working directly with these platforms to "create awareness and stop counterfeit listings."

Recognising that enforcement alone is insufficient, EABL is championing broader initiatives. The report highlights the company's role at "the forefront of industry initiatives to promote positive drinking," which includes campaigns aimed at raising awareness about the dangers of illicit alcohol. This aligns with its global "Society 2030: Spirit of Progress" plan, which focuses on promoting moderation and responsible consumption.

EABL acknowledges that combating counterfeiters requires a united front. The report notes "increased stakeholder engagements with national and county government and relevant government agencies" to advocate for stronger enforcement of existing laws and regulations.

A key strategic response has been to innovate within the value segment, aiming to offer consumers affordable, high-quality alternatives that leave little room for illicit competitors.

The report highlights the success of brands like Senator Kenya, a beer originally developed to combat illicit consumption by providing a quality, affordable product under regulated conditions.

EABL is also "innovating in viable value beer and spirits" to meet consumer demand for lower-priced options without compromising safety or quality.

Despite these efforts, EABL's outlook on the risk remains cautious. The "Product Quality, Illicit and Counterfeit" risk is assessed as likely to "remain broadly stable" in the near term, indicating the company expects the challenge to persist.