Majesty Brands extends Ngule beer partnership with UBL

UGANDA – Majestic Brands, an investment arm of Buganda Kingdom, has extended its partnership with Uganda Breweries Limited (UBL) to manufacture Ngule, the kingdom’s official beer.

Ngule is made from local ingredients; cassava and sorghum, which are exclusively sourced from Ugandan farmers through UBL’s Local Raw Materials Program.

In January 2016, UBL and Buganda Kingdom entered a partnership to produce Ngule under a revenue-sharing agreement that is beneficial to both entities.

Sold at a recommended retail price of UGX 2,500 (US$0.68), Ngule is one of the most affordable beers in the market, Majestic Brands said.

Since launch, Uganda Breweries has paid the kingdom royalties worth over shs1.062 billion (US$288,000) from revenues earned from Ngule, per contractual obligations.

Katikkiro (prime minister of the Kingdom of Buganda) Charles Peter Mayiga said: “Through this partnership, we are keen on job creation and generating wealth for His Majesty’s subjects.” The product is manufactured using local materials sourced from farmers to raise household incomes and alleviate poverty.

Ngule is one of the kingdom’s innovations (obuyiiya) which is a key agenda of Buganda’s 5-year strategic plan. The positive outcomes from this beer have not only been felt by the kingdom. Employment opportunities for distributors, sellers, and farmers have been created in Buganda. We have also been able to pay taxes to the national treasury, thereby increasing incomes in the country.”

Mayiga added that the partnership was one of the Kingdom’s solutions to raising income levels for both the kingdom and its people. He confirmed that it has been mutually beneficial.

The brand, as highlighted by Mayiga, is also one of the many initiatives of the kingdom and urged the people to continue supporting their King

According to Eunice Waweru, Finance and Strategy Director, Uganda Breweries, the extension is a demonstration of UBL’s commitment to investing significantly to support the growth of Ngule, a homegrown brand.

She noted that the product is affordably priced and well poised to grow given its market potential to offer quality and value to consumers.

It was a deliberate decision by UBL to take up the beer brand to also get more Ugandans to consume formal beer and move away from illicit alcohol that is of questionable quality and potentially hazardous, Waweru revealed.

Until 2025, Market Research projects the beer market in Uganda to reach US$1.03 billion (in retail prices), increasing at a CAGR of 8.64% per annum for the period 2020-2025.

Each year, up to a million Ugandans reach the legal purchase age, fueling a market full of untapped potential for new and developing businesses.

Consuming up to 10 liters of alcohol per person per annum, Uganda has become a country of significant growth for the adult beverage industry.

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