Publications
Publications
- September 2019 (Revised May 2020)
- HBS Case Collection
Keroche (E): Considering Additional Capacity
By: Ramon Casadesus-Masanell and Pippa Tubman Armerding
Abstract
This case describes Keroche’s growth after entering the beer business in 2008. Although the company was operating at full capacity and not able to fulfill all of its orders, Tabitha Karanja had set a goal of growing Keroche’s share of the Kenyan beer market from slightly over 1% to 20%. In 2010, Tabitha Karanja had invested US$2.5 million in a PET bottling line to increase capacity of Keroche’s vodka drinks. However, in 2010, the government had passed a law requiring alcoholic drinks to be sold in glass containers, which made the PET investment obsolete. Now, in 2011, Tabitha Karanja sought new funding for a glass bottling line. The case asks whether, in the midst of these new investments, it was also time to expand beer capacity by building a new and larger plant.
Keywords
Keroche; Alcohol; Alcoholic Beverages; Beer; Beer Market; Premium Beer; Manufacturing; Production; Production Capacity; Capacity; Business Ventures; Business Exit or Shutdown; Business Growth and Maturation; Business Startups; Small Business; Family Business; Crime and Corruption; Customer Focus and Relationships; Decisions; Income; Demographics; Geographic Scope; Geographic Location; Goods and Commodities; Government Legislation; Growth and Development; Business History; Lawsuits and Litigation; Laws and Statutes; Lawfulness; Goals and Objectives; Consumer Behavior; Market Entry and Exit; Problems and Challenges; Safety; Social Issues; Poverty; Strategy; Competition; Entrepreneurship; Investment; Financing and Loans; Manufacturing Industry; Food and Beverage Industry
Citation
Casadesus-Masanell, Ramon, and Pippa Tubman Armerding. "Keroche (E): Considering Additional Capacity." Harvard Business School Supplement 720-394, September 2019. (Revised May 2020.)