How Rwanda’s Bralirwa is responding to COVID-19 shocks

The COVID-19 pandemic has had a profound impact on various industries, including the beverage sector, with supply chain disruptions and the closure of bars leading to significant challenges for businesses. Rwanda’s largest brewer, Bralirwa, has not been immune to these challenges. In a recent interview with CNBC Africa's Steven Muvunyi, Managing Director Merid Demissie shared insights on how the company is responding to the shocks caused by the ongoing pandemic. Merid Demissie expressed pride in Bralirwa’s longstanding presence in Rwanda, highlighting the company's 61-year history and its contributions to the country's economy. Despite the unprecedented challenges posed by the pandemic, Bralirwa remains committed to finding innovative solutions to navigate through these difficult times. One of the key issues faced by the company is its dependency on bars and events for sales, which were heavily impacted by lockdown measures and restrictions on social gatherings. Demissie acknowledged the initial impact of these restrictions but also highlighted the crucial support provided by the Rwandan government, particularly the Rwanda Revenue Authority (RRA). He commended RRA's open-door policy, which allowed businesses to engage with tax authorities and discuss their challenges openly. Demissie emphasized the importance of collaboration between businesses and government entities during such trying times, acknowledging the mutual understanding that is essential for overcoming shared challenges. While recognizing the gravity of the situation and the priority of public health and safety, Demissie underscored Bralirwa's resilience and adaptability in adjusting its distribution strategy to meet consumer needs during the pandemic. The company underwent a significant shift in its distribution system, moving away from traditional channels like bars and recreational areas to focus on neighborhood kiosks, mini markets, and supermarkets. These changes were essential to ensure continued access to Bralirwa's products despite the limitations imposed by lockdown measures. Despite facing a decline in volumes and revenues in the first half of 2020, Bralirwa remains optimistic about its performance in the second half of the year. Demissie pointed out that while challenges persist, there is a growing sense of understanding and awareness regarding COVID-19 within society, which is likely to contribute to a gradual recovery. Bralirwa is determined to pursue strategies that prioritize consumer engagement and accessibility, ensuring that its products remain readily available to customers amid evolving market conditions. The company's proactive approach to adaptation and innovation reflects its commitment to weathering the ongoing challenges posed by the pandemic and emerging stronger from the crisis.