The company,
a unit of Paris-based LVMH, began distributing its products in the Kenyan
capital in May and plans to use the city as a hub for regional distribution,
CEO Bernard Peillon said in an interview in Nairobi. A bottle of Hennessy
cognac retails for as much as 117 000 shillings ($1 127) in the city’s shops,
the company said.


“Kenya is a boost market, the next emerging market frontier for us,” Peillon
said. The company is targeting “double-digit” sales growth, he said, without
specifying targets.

Kenya was Africa’s second-largest market for luxury goods in 2016, with revenue
of about $500m, up 25% from a year earlier, according to a report by New World
Wealth, a Johannesburg-based research group.

The country ranked behind South Africa’s $2.3bn market and ahead of Nigeria, it
said. Brands like Hennessy are expanding their reach on the continent to tap
into growing numbers of middle-class and rich people.

Kenya, where luxury brands including Bentley, Porsche and Rolex are already
available, has 9 400 dollar millionaires, the fourth-highest number behind
South Africa, Egypt and Nigeria, according to the New World Wealth report.

About 7 500 new millionaires will emerge over the next decade in the East
African nation, the third-fastest pace on the continent after Ethiopia and
Mauritius, according to the 2017 Wealth Report compiled by London-based Knight
Frank.

Hennessy sells cognac in 140 countries, including South Africa and in Nigeria.
While the continent is experiencing double-digit revenue growth, it accounts
for less than 10% of the global market, Peillon said.

“Our role is to figure out what might happen in the world, to have a vision
of what could become of Kenya, and we are positive,”
 Peillon
said. “I am here in Kenya, so it is a clear sign of commitment and of
interest.”
 

Source:
Fastmoving