The performance of the company is a matter of great concern to the shareholders. In every industry there exists factors that may promote or inhibit company performance. One factor that may actually both promote and inhibit this performance is competition.

The clearest indicator of increased competition is the entrance of a new player in the industry. This seems to be the case with East Africa Breweries Limited (EABL) with the re-emergence of SAB Miller, the producers of the Castle Lager brand.

Last week SAB Miller launched the Castle Milk Stout beer in Kenya and in anticipation of this EABL rapidly launched a new fruit flavoured beverage, Snapp just 24 hours earlier. This latest competitive streak brings to the fore the rivalry that existed between the two companies a few years ago due to the similar market that their major brands EABL’s Tusker and SAB Miller’s Castle Lager seek to attract.

It will be interesting to observe how EABL’s performance will be affected by this increased competition and consequently how this will affect the return on investment available to Kenyans as it is listed on the NSE.