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Tanzania Breweries Limited (TBL) has significantly decreased production of Konyagi, one of the most popular spirits in the country, following a sharp decline in demand due to the ploriferation of illicit alcohol.
According to government data, Konyagi output plunged from 33.287 million litres in 2020 to 22.066 million litres in 2021, a decline of 11.2 million litres in just one year.
In 2022, TBL produced 22.489 million litres of Konyagi, which was well below the five-year peak recorded in 2020.
The gin has in recent years faced growing competition from other spirits, including K-Vant and cheap alcohol brands sold in small volumes such as 100-millilitre bottles.
But industry sources cite fake alcohol as the overriding factor in the sharp decline of Konyagi output from 2021.
Konyagi is one of the oldest and most famous brands of spirits in East Africa, manufactured by Tanzania Distilleries Limited (TDL), a subsidiary of TBL.
Several backyard operations have emerged, taking advantage of the increased demand for illicit drinks by distilling and bottling counterfeit spirits of popular brands, including Konyagi.
"To be honest, illicit spirits are so widespread right now in Tanzania that Konyagi and K-Vant are no longer growing," a source familiar with the industry told 𝑻𝒂𝒏𝒛𝒂𝒏𝒊𝒂 𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔 𝑰𝒏𝒔𝒊𝒈𝒉𝒕.
Counterfeit alcohol is being made in small, makeshift factories in Dar es Salaam and elsewhere across the country using empty bottles of Konyagi recycled from bars and other retailers.
A survey by the 𝑻𝒂𝒏𝒛𝒂𝒏𝒊𝒂 𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔 𝑰𝒏𝒔𝒊𝒈𝒉𝒕 has uncovered that individuals behind the illicit production of alcohol frequently visit local pubs and hotels to buy used empty bottles of Konyagi and other spirits.
Illicit alcohol is also produced on an industrial scale in some northern Tanzanian regions where it is manufactured in high volumes and loaded onto trucks for distribution to geographically-isolated areas.
Fake liquor is affecting sales and profits of spirits sold in the legitimate market and thus jeopardizing jobs and government revenue, according to a 2019 study by Ernst & Young.
The study showed that consumption of illicit and informal alcohol costs the government about TZS 1.2 trillion in uncollected excise duty each year.
Meanwhile, beer makers in Tanzania are also worried about the implications of the recent introduction of a 20% increase in excise on beer.
The resulting retail price increase for beer after the hike of excise duty could force some low-income Tanzanians to switch from beer to illicit spirits, said one industry player.
𝗧𝗿𝗲𝗻𝗱 𝗼𝗳 𝗞𝗼𝗻𝘆𝗮𝗴𝗶 𝗼𝘂𝘁𝗽𝘂𝘁 𝗼𝘃𝗲𝗿 𝘁𝗵𝗲 𝗽𝗮𝘀𝘁 𝟱 𝘆𝗲𝗮𝗿𝘀:
🍸 𝟮𝟬𝟭𝟴: 𝟮𝟵,𝟯𝟯𝟱,𝟬𝟬𝟬 𝗹𝗶𝘁𝗿𝗲𝘀
🍸𝟮𝟬𝟭𝟵: 𝟯𝟮,𝟯𝟲𝟲,𝟬𝟬𝟬 𝗹𝗶𝘁𝗿𝗲𝘀
🍸𝟮𝟬𝟮𝟬: 𝟯𝟯,𝟮𝟴𝟳,𝟬𝟬𝟬 𝗹𝗶𝘁𝗿𝗲𝘀
🍸𝟮𝟬𝟮𝟭: 𝟮𝟮,𝟬𝟲𝟲,𝟬𝟬𝟬 𝗹𝗶𝘁𝗿𝗲𝘀
🍸𝟮𝟬𝟮𝟮: 𝟮𝟮,𝟰𝟴𝟵,𝟬𝟬𝟬 𝗹𝗶𝘁𝗿𝗲𝘀
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