The well-known worldwide brewer Heineken has reached an agreement to acquire the ownership of the relatively new but well-liked spirits brand Arada, produced by Komari Beverage, Capital has learned.

According to sources, the firm that was founded by Ethiopian businesspeople who wanted to create an Ethiopian beverage brand has decided to sell the beverage company for an undisclosed sum of money.

The deal according to our sources was concluded last week and will be officially announced in the presence of a regional director of Heineken in the next couple of weeks.

Arada has quickly made a name for itself in a market that is often dominated by beer and spirits.

Komari Beverage operates in a market where established rivals have a dominant position; nonetheless, Arada has effectively assimilated into the community in less than three years.

The agreement with the owner of a well-known worldwide brand was reportedly nearing completion in July, but it was postponed until last week because of a significant shift in the economy that occurred at the end of July.

According to insiders, “the government’s introduction of macroeconomic reform, which included the forex exchange to be determined by the market, stalled the negotiation process with Heineken, which was at the final stage.”

The reform that went into effect on July 29 caused the exchange rate to increase.

Sources declined to provide specifics, but they did confirm that the two sides’ agreement was finalized a week ago.

Chief Brand Officer of Komari Beverage Abiy Solomon recently stated in an interview with Capital that his company’s unique product offering is one of the three strategies that will help the product become popular among Ethiopian spirits enthusiasts.

“We understand the Ethiopian consumer’s desire for variety and refreshment, and collaborative innovation that actively involves consumers in the product development process are the key reasons to make our spirit welcomed by customers,” Solomon said.

“Disruptive Brand Identity: We strive to be disruptive, inspiring, and enjoyable through our eye-catching logo and visuals, as well as our engaging events and marketing initiatives,” stated Abiy, citing the overwhelming positive response from customers as further evidence of this strategy.

With a production capacity of 27,000 bottles per hour, Komari is unique in the Ethiopian beverage industry since it created the hard seltzer category, which is different from the conventional beer, wine, and spirits that are popular in the region.

According to the firm, these conventional alternatives make up the majority of the Ethiopian alcoholic beverage market; “before Arada, there was no alternative that offered zero calories, no carbs, and no sugar.”

Since its launch in 2021, Komari Beverage, which is wholly owned by Ethiopians, has quickly grown in popularity.

The manufacturing location is situated on a four-hectare plot in the North Shewa Zone of the Amhara region, 96 kilometers northeast of Addis Ababa, in the high-altitude Cheki area.

The factory’s construction cost more than USD 29 million.

Arada, Komari’s flagship product, is available in three enticing flavors: lemon, apple, and pineapple. This allows Komari to satisfy a wide range of consumer tastes and maintain its position as a cutting-edge leader in the market.

In 2011, Heineken was established in Ethiopia when it paid USD 163 million to acquire the breweries in Harar, in eastern Ethiopia, and Bedele, in western Ethiopia that were owned by the government.

With a 310 million euro investment, Heineken Ethiopia opened the largest brewery in 2015 at a greenfield location in Kilinto, east of Addis Ababa.