Identifier
Created
Classification
Origin
07NDJAMENA657
2007-08-13 12:59:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ndjamena
Cable title:  

GUINNESS TESTS THE WATERS IN CHAD

Tags:  CD ETRD ECON PGOV PREL 
pdf how-to read a cable
VZCZCXRO8765
RR RUEHGI
DE RUEHNJ #0657/01 2251259
ZNR UUUUU ZZH
R 131259Z AUG 07
FM AMEMBASSY NDJAMENA
TO RUEHC/SECSTATE WASHDC 5611
INFO RUEHUJA/AMEMBASSY ABUJA 1433
RUEHAR/AMEMBASSY ACCRA 0518
RUEHGI/AMEMBASSY BANGUI 1413
RUEHDK/AMEMBASSY DAKAR 1344
RUEHLC/AMEMBASSY LIBREVILLE 1021
RUEHLO/AMEMBASSY LONDON 1726
RUEHFR/AMEMBASSY PARIS 2232
RUEHYD/AMEMBASSY YAOUNDE 1592
UNCLAS SECTION 01 OF 02 NDJAMENA 000657 

SIPDIS

SENSITIVE
SIPDIS

DEPT OF COMMERCE - FOR KAREN BURRESS; DAKAR - FOR FOREIGN
COMMERCIAL SERVICE; PARIS AND LONDON FOR AFRICA WATCHERS

E.O. 12958: N/A
TAGS: CD ETRD ECON PGOV PREL
SUBJECT: GUINNESS TESTS THE WATERS IN CHAD


UNCLAS SECTION 01 OF 02 NDJAMENA 000657

SIPDIS

SENSITIVE
SIPDIS

DEPT OF COMMERCE - FOR KAREN BURRESS; DAKAR - FOR FOREIGN
COMMERCIAL SERVICE; PARIS AND LONDON FOR AFRICA WATCHERS

E.O. 12958: N/A
TAGS: CD ETRD ECON PGOV PREL
SUBJECT: GUINNESS TESTS THE WATERS IN CHAD



1. (SBU) SUMMARY: On July 26, Chad's only brewery, Les
Brasseries du Tchad (BDT),announced the addition of Guinness
to its existing product line. Chad's neighbor, Cameroon, has
produced Guinness for years and some Cameroonian Guinness was
imported to Chad both legally and clandestinely. By
producing Guinness in Chad, BDT will be able to offer the
dark beer at a cheaper price than the Cameroonian imports and
thereby undercut the contraband supply. BDT's commercial
director discussed with econoff BDT's plans for Guinness. He
also shared with us general trends for beer consumption in
Chad, including increased sales among young adult and Muslim
consumers. The ongoing public sector strike and the
political instability do not seem to have had a significant
effect on beer consumption although lay-offs in the
cotton-growing region may dampen sales in southern Chad. END
SUMMARY.

--------------
A MONOPOLY ON BEER AND SODA
--------------


2. (SBU) Les Brasseries du Tchad (BDT) is Chad's only
brewery, producing three types of lager beer, a non-alcoholic
malt drink, and soda products including Coca Cola. They plan
to add bottled water to their products by the end of this
year. (Chad currently imports most of its bottled water from
Cameroon). It is owned by the French company Castel.
Econoff visited BDT's operations in both the capital,
N'djamena, and in the southern city of Moundou. The company
employs approximately 300 people in Chad.

--------------
BEER IN CHAD: A SURE THING
--------------


3. (SBU) BDT's commercial director, Djimadoumnodji Servais,
said business is generally good in Chad. He said there
aren't many other distractions and so, sharing a beer (or
soda) with friends is one of the main ways people socialize
here. The company sells its products all over the country
and is even able to reach the remote sections including
Abeche, in eastern Chad. The commercial director noted more
and more young adults are drinking beer in Chad, having
acquired a taste for it abroad. A significant portion of
Chad's Muslim population drinks beer and, he noted, they have
a lot of disposable income to spend on it.


4. (SBU) The ongoing public sector strike has had some
effect on the demand for beer. (The strike started a few
months ago). The BDT public relations director in Moundou
said he saw sales decrease somewhat due to the strike as well
as due to the recent lay-offs of employees of the cotton
company, CotonTchad. These events were unexpected, whereas
normal fluctuations in income due to the agricultural seasons
are factored into BDT's production and marketing strategies.
The commercial director in N'djamena noted employees of the
education, health, and military sectors are among the biggest
beer consumers. He pointed out, however, the unions for the
education and health ministries ended the strike in July and
the military never went on strike.

--------------
WHY GUINNESS? WHY NOW?
--------------


5. (SBU) The BDT commercial director explained the company
wanted to add a dark beer to its product line. They did
market surveys and decided it would be profitable to start
producing Guinness locally, rather than continue to import it
from Cameroon. Some Cameroonian-produced Guinness is still
in stock in Chad and so BDT will gradually increase its
production. For the last three days of July, when Chadian
Guinness was first sold, it represented only 3 per cent of
BDT's sales. It is too soon to know how August's sales
figures will compare. However, on a recent afternoon at one
of N'djamena's most popular Sunday afternoon spots ("La
Plantation"),Guinness bottles could be spotted at almost
every table. A bottle of Guinness sells for 700 CFA francs
(approximately US$ 1.50) in most bars in N'djamena while the
price can double or triple in upscale hotels. For now, BDT
is selling Guinness only in N'djamena to give the new brand a


***********************
* Missing Section 002 *
***********************