Abstract

Learning Outcomes

This case can be used to teach students the strategic, operational, and leadership complexities of navigating a major disruption in a regulated industry. Upon completion of the case discussion, students will be able to identify the success factors that shaped pre-crisis growth and evaluate vulnerabilities exposed by sudden shocks; analyse leadership decisions around cost control, stakeholder management, and continuity planning; and assess the risks of business models dependent on government incentives. Learners will also explore strategic alternatives for post-crisis growth, including diversification, digital transformation, and new route-to-market approaches; examine how innovation, people strategy, and supply chain resilience enabled agility; and consider the role of corporate social responsibility, government partnerships, and sustainability commitments in driving resilience and long-term competitiveness.

Case Synopsis

This case examines East African Breweries Plc. (EABL), a market-leading brewing company in East Africa, under the leadership of CEO Jane Karuku. The case begins in early 2021, when Jane is appointed to lead EABL amid the fallout from the COVID‑19 pandemic, which had resulted in declining sales, profit warnings, and operational challenges. It traces EABL’s historical growth trajectory from its founding in 1922, through strategic acquisitions, innovation, and its 2017–2022 “F17–F22” strategy to the disruptions of 2020. The study highlights EABL’s reliance on tax remissions (like those for the Senator keg business), its growth through innovations and route-to-market reforms, and challenges posed by taxation, regulation, and over-dependence on on-trade channels. The case explores how EABL’s leadership pivoted toward resilience, innovation, and stakeholder alignment to weather disruptions.

Complexity/ Academic level

The case study can be applied at graduate, postgraduate (MIM and MBA), and executive education programmes for senior-level, advanced management, and board-level participants. It is particularly suited for executive education programmes such as the Global CEO Programme, Advanced Management Programme, Senior Management Programme, and Board Programmes. It can also be used in Africa-focused core or elective courses for degree programmes or senior managerial executive education on doing business in Africa. Given the scarcity of leadership, strategy, and innovation-focused cases centred on African companies and protagonists, this case provides a valuable resource that business schools across the world will find relevant and insightful.

Supplementary Materials

Teaching notes are available only to educators upon request from the Case Centre at cases@strathmore.edu

Keywords

Strategy and innovation in consumer goods, Crisis and turnaround leadership, Regulatory risk and public-private dynamics, Operational and channel strategy, Strategy sustainability

Citation

Mathuva, D. (2025). East African Breweries Plc.: Navigating a Major Disruption (A). Strathmore Africa Case Center. https://doi.org/10.70268/SACC-05-2023-33

Publisher: Strathmore Africa Case Centre

Copyright © 2025, Strathmore Africa Case Centre

Category : Case

Author : David Mathuva

Publisher : Strathmore University

Document ID : SACC-05-2023-33