Kenya has an increasing rate of unemployment, which leads to a lot of people in the country venturing into other businesses. The wine and spirit business in Kenya is thriving as a lot of Kenyans spend quite a lot on drinks daily. About Ksh 200 is spent daily on drinks by around thirteen million Kenyans. This brings the daily revenue of the wine and spirit business in Kenya to about 2.6 million Kenya shillings. The wine and spirit business in Kenya has become a really profitable business for entrepreneurs in Kenya.
Kenyans enjoy drinking, this means that the wines and spirits business in Kenya is a very profitable business. It is better to start a wholesale wines and spirits business because wholesalers make more money than retailers. They also make more because they are able to move bigger volumes.
Types Of Wines And Spirits In Kenya
Alcohol can be categorized into beers, wines and spirits. Spirits are alcohol that go through a distillation process and normally have higher alcohol percentages. Some types of spirits that can be found in Kenya are gin, tequila, rum, vodka, whisky, brandy, etc.
There are many types of wines in Kenya, some types of wines that can be found in Kenya include red wines, white wines, port wines, fortified wines, vermouth, etc.
Kenya Wines And Spirits Prices
Wines in Kenya are not normally expensive. The prices of wine in Kenya ranges from Ksh 1,000 to Ksh 40,000. The most expensive wine in Kenya is the Dom Perignon Rose, and it costs between Ksh 37,000 and Ksh 40,000. The prices of spirits range from Ksh 3,000 to Ksh 700,000. The most expensive spirit in Kenya is the Johnnie Walker 700ml, and it costs Ksh 700,000.
Wines And Spirits Wholesale Prices In Kenya
The wholesale prices of wines and spirits in Kenya depend on the type of wine and spirit and the quantity that is being ordered.
The Most Expensive Alcohol In Kenya
The most expensive alcohols in Kenya are normally spirits. Beers and wines normally have low prices. The most expensive spirit in Kenya is the Johnnie Walker 700ml, and it costs Ksh 700,000. The most expensive wine in Kenya is the Dom, Perignon Rose and it costs between Ksh 37,000 and Ksh 40,000.
Wines And Spirits Distributors In Nairobi
There are many wines and spirits distributors in Nairobi. It will be very profitable to start as a wholesale wines and spirits distributor. Some wines and spirits distributors in Nairobi include;
- Twins Wines and Spirits Distributors,
- Jays Wines Distributors Limited,
- Jedy Wines and Spirits Distributors,
- Viva Global Ltd,
- Kifaru Wines and Spirits Wholesalers, etc.
How To Start A Wine And Spirit Business in Kenya
There are a lot of procedures to follow when planning to start a wine and spirit business in Kenya.
Get Your Capital
To start a wine and spirit business in Kenya you will need a capital of 200,000-400,000 shillings. With this amount you should be able to pay for rent, furniture, licenses and other things. You can apply for a loan if you do not have this amount of money.
After getting your capital you can start searching for a suitable business location. The location of your wines and spirits business should be in a busy urban area or near busy roads where there is a lot of human traffic. You have to increase the visibility of your wines and spirits business.
You should start your wines and spirits business in a less competitive environment. If your wines and spirits business is in the same environment as other similar businesses, it may not survive the intense competition especially if you are new to the industry.
You have to find an affordable place where the rent is not more than Ksh 14,000. In Kenya the wines and spirits business gives an average income of Ksh 40,000 to Ksh 100,000 each month. If the cost of rent for your business facility is more than Ksh 20,000 you will most likely struggle, and you might experience loss.
Get the Required Documents and Licenses
After getting your capital and finding a good location for your wines and spirits business, you will now have to fulfill the legal requirements for a wines and spirits business.
The first thing that you have to do is register your wines and spirits business. Registering any legal business is no longer a difficult task in Kenya. The best part is that everything is done online, this makes it faster, convenient and more effective. You can register wines and spirits business names on eCitizen. On the 15th October 2017, the registrar of companies stopped allowing manual business registration.
The eCitizen app is a portal that allows the citizens to easily access government services.
In order for you to register your business you have to create an eCitizen account, if you already have an existing account then just login. Apply for a business name and pay the fee for a company name search, it should cost about 150 shillings per name.
When applying for a business name, you can apply for a maximum of three names and if the name search goes through you will get a name reservation between 1 and 4 days, the details will be sent to your eCitizen account.
After the business name registration process you have to register your business. During the application process, you will be required to pay the company registration fee of about Ksh 10,000 but if you are registering as a sole proprietor, it will only cost ksh 850. If you are registering as a partnership, the registration fee is Ksh 2,500. For business registration, you will have to send signed application forms, and you will get your business registration documents in two to three weeks.
Once you are done with your business name registration and business registration, you have to acquire a Kenya Revenue Authority Pin. There is no business in Kenya that does not have a tax registration pin. The registration process for your wines and spirits business can be completed on the Kenya Revenue Authority iTax Portal by following these steps:
- Register as a taxpayer.
- Follow the outline procedures to apply for your company Pin.
- Send your PIN Acknowledgement Receipt.
- Get your business PIN.
You can not start a wines and spirits business without a valid liquor license. In Nairobi, the price of a liquor license is as follows;
- 6,000 shillings for liquor license application.
- 50,000 shillings for a valid one year liquor license.
After acquiring your liquor license you are required to get a county business permit which you can acquire from the city council but be sure to communicate with the city council officers about the prices of the permit. The council officers will come and inspect your business place and give you some advice on how to pay. When the payment is complete you will receive a receipt, and you will receive a certificate a week later. A county business permit is only valid for a year, so you will have to renew it each year.
Get a Reliable Supplier
Having a reliable supplier means that you will never run out of stock, and you will receive high quality goods. Finding a good supplier might not be easy, but you have to be smart. It is not a good idea to ask a wines and spirits business owner for a supplier because they might not take it well, and they will not be willing to give you their supplier’s details.
If you have a good relationship with wine and spirits business owners they can willingly give you advice and a few tips to help you run your wines and spirits business properly. Once you have gotten reliable suppliers you can now communicate with them about when and where to deliver the suppliers and how you will pay.
Furnish and Stock Up Your Wines and Spirits Shop
A well furnished room will attract customers. You should ensure that you have enough shelves, seats and tables. You do not necessarily need expensive furniture to make your shop look attractive. A simple well-arranged shop will be just fine. Your stock may cost between 100,000 to 200,000 shillings but if you plan on starting a wholesale wines and spirits business you will most likely need more than 500,000 shillings.
Wines and Spirits Business Plan
Before starting any business you need a proper business plan that will help you to run your business successfully. When writing your wines and spirits business plan, it should consist of:
- Executive summary,
- Business description/ Industry overview,
- Mission statement,
- Vision statement,
- Products and services,
- Market analysis,
- Business structure
- Sales and advertisement strategy,
- Financial plan,
- Competitive advantage
If you have a good business plan, strategy, and you put in the needed effort, your wines and spirits business will be very profitable.