Shiko-Msa of Wanjiuku Unlimited welcomed the launch of Alvaro:

Make a statement without saying a word - this aptly describes East African Brewery's new kid on the block Alvaro. In its stylish green bottle, it has an outstanding sophisticated look synonymous with the 24-35 age group for whom it’s targeted. Produced in pineapple and pear flavours, Alvaro seems to have hit the market with a bang with sales having already jumped to three times above the projected trends. In pubs and supermarkets the drink is said to be flying off the shelves.

Sayra left a comment on the post about the reaction from Coca-Cola:

For sure coke are in trouble and am seeing one of those interesting corporate fights. This time things might be a bit hard for them to conduct their not so ethical business practices…

Rafiki Kenya, though was less than impressed with Alvaro's branding as a natural product:

Alvaro comes in two flavours: pear and pineapple. Yes indeed, flavours. And that's where the problem lies, since there is nothing natural about flavours. Alvaro: unique, maybe - but natural, surely not.

The marketing blog brandkemistry wrote about the success of Alvaro, who has already sold over 7 million bottles:

… what is Coca Cola going to do to keep in check Alvaro’s rise in this market. So far Coca Cola launched burn - an energy drink and a 50 million shilling promotion but i dont that will counter Alvaro’s growth in this market. Time to watch wait and see but for the very first time EABL [East African Breweries] has gotten the non alcoholic beverage right. As some preacher said recently Christians in this country have been waiting for a long time to partake from EABL’s table, with Alvaro thier wait has be amplty rewarded.

I just wonder how Coca Cola will counter the rise of Alvaro… i guess only time will tell.

prop4g4nd4kali left a comment on the post against Coca Cola:

Coca-Cola’s distribution system is almost criminal. They maintain market share by bullying retailers to stock only their products. No amount of marketing or investment can help a rival. You think you have choice? Or that you drink Coke products because you like them? It’s more likely you do so because it is everywhere and it’s the only thing there

Last July, Alvaro got in trouble when to it was claimed in the Kenyan Parliament that the soft drink contained alcohol which may have contributed to a wave of riots by school children that affected some parts of the country:

Alvaro recently found it’s name in parliament with nominated MP Rachel Shebesh putting the Minister for Industrialization to task to confirm or deny that the drink contains no alcohol. To back her claims, she said that tests carried out on Alvaro in school laboratories proved that it contains traces of alcohol. Yatta MP Charles Kilonzo added that if exposed to sunshine for one hour, it turns alcoholic. Or rather it produces traces of ethanol

A few people reacted to that post:

Kirima:

I would have laughed at the debate in Parliament if it wasn't so sickeningly ridiculous, I wonder why our overpaid MP's cannot use the research facilities provided to them by the taxpayers properly.

31337:

when i heard the debate on the news i almost smashed my radio to bits, but seeing as that would have been counter productive i turned it off instead, the gall!

BP ONE:

Alvaro is said to be malt base nonalcoholic drink and it is generally known that malt base nonalcoholic beverage has never been without controversy in the other parts of the world

Coca Cola did eventually respond to the competition, and in November 2008 it launched a new drink similar to Alvaro called Novida which Rafiki Kenya said tastes better :

Novida' is Portuguese for ‘new life'. And you can now get that new life in Nairobi for only 25 bob! Novida comes in three flavours: pineapple, apple and tropical.

As far as the taste is concerned, I found my Novida Pineapple to be quite refreshing and very similar to Alvaro Pineapple, maybe just a touch sweeter.

But not impressed by Novida is Larrymads who is an avowed Alvaro fanatic

The Novida pineapple tasted EXACTLY LIKE ALVARO! Only 30ml less than Alvaro that comes in 330ml. So what’s the deal with that?

Novida vs. Alvaro was the subject of a thread at Stockskenya, a discussion forum about shares and investment issues, and opinions were very diverse:

cmk

In order to hit back and avoid further erosion of it market, coca cola is to launch a ‘carbon copy' of alvaro

Ali Baba

You guys have your drinks from EABL and COKE; others like me who don't drink alcohol, don’t drink sodas and soft drinks; I’m still waiting for someone to offer what I drink

Gordon Gekko

I suspect these two brands appeal to an entirely new market - like those who hang out in bars but dont drink alcohol. I cant see my kids switching to Novida from coke,neither can I see the thirsty guy at the kiosk switching as he is driven by value (these drinks are 200 ml less and cost khs 10 more).

Magic

Although I respect EABL- I just think Coca Cola- with their money, experience means that in the soft drink market they will win. However- I predict that with time… Sodas will not be popular- which is why they are spreading out to new products. My take is that in the long term EABL wins

He arrived in Kenya and was unveiled by an opposition leader, Raila Odinga, who is the fore runner in the Kenyan presidential elections that will be held on 27 December 2007. But Morris appears to have left the country a day later, leaving behind varied comments on his role and possible impact on the upcoming elections.

The blog Somewhere in Africa in a post titled “ Old political hacks don't die” notes that;

Morris working prop bono (without pay) is a clever way of avoiding having to secure a work permit in Kenya, which, as I can tell you from experience, is perhaps only marginally less complicated and time-consuming than contesting the presidency.

And adds that;

The campaign of Kenyan president aspirant Raila Odinga could be Morris's greatest political challenge yet. It's almost unheard of for an incumbent head of state to be unseated in an election in Africa, although Raila is leading most pre-election polls.

In a somewhat related post at the same time Where the African woman Thinks, laments the treatment of Kenyan authorities of a fellow African (from Senegal) and asks why it is so difficult for Africans to travel and do business with other African countries

The blog,A Nairobian’s perspective, highlights Morris' past tax troubles and notes that the Kenya Government made it clear that he was not welcome in Kenya.

The President Mwai Kibaki did not fail to mention that Dick Morris had been misguided by the opposition and that he would be of no consequence in the elections while The Government spokesman, Alfred Mutua, mentioned that Morris risked facing deportation as he had visited the country on a tourist visa and had no valid work permit as a political strategist.

The Morris debate takes on a racial, colonial angle at Kenya Stockholm Blog where Okoth Osewe draws a parallel to Kenya's own embassy in Sweden where he says non Kenyan (whites) occupy senior posts as translator, accounts assistant, and local head of the kenya tourist board – jobs that could be handled by Kenyans.

He notes that:

Kenyans in Stockholm (are) crying wolf - they are well aware that at the Kenyan embassy in Stockholm, white Swedish nationals are occupying sensitive positions, not because there are no Kenyans who can take up their jobs but because the Kibaki government has decided to retain them at the Embassy after they were hired by the former dictatorship of Daniel arap Moi. Dick Morris bashers have never raised a finger at these foreign and white Embassy staff who continue to swagger along Embassy corridors like neo-colonial conquistadors who are there to stay.

But the most comprehensive discussions came from the Kenya Imagine forum, which posed the question Does Dick Morris Matter? in a post that pointed out;

Morris will work for almost anyone. His presence in the party as an advisor shows either a desire to inaugurate a campaign of dirty tricks or that we are being taken over from the outside by unknown forces.

Comments to that post included;

Stephen Wanyama:

Raila is panicking, and that can only mean he is fully aware of his slipping fortunes. No one in the USA would have him (Morris) work on their campaign, do you hear?

MimiMzalendo:

I'm in shock to see racist-veneer comments from elites who may have benefited from foreign academic or working sabbaticals BUT have the audacity to come here and play that ukabila/rascist card. Global talent, be it political-economic-technological, etc is always mobile.

Githush:

believe NARC saw it fit to rely on South African strategists in the 2002 election and wonders if Morris strengths as a media consultant, with a penchant for negative advertising, work in Kenya? We shall see.

Mzalendo Pia:

why Dick Morris is working ‘pro bono' in Kenya when he has no known interests is one any Kenyan should ask themselves. Why do we still think that foreigners know what's best for us or even, God forbid that they have our best interests at heart.

Seline:

And by the way, there is a second consultant ain't sure but I think he's from Argentina, why aren't we focusing on him?

Serah:

Both Dick Morris and Dick Berg emanate from the same axis, political and economic hit men; there is a tendency among the colonized peoples to suffer from inferior complex complexes.

MimiMzalendo:

Kibaki Camp running for re-election and blasting the “voluntary services” of a foreign political strategist and he completely forgot that in 2002 he himself hired a foreigner as a political strategist on communications.
The man was MARCUS COURAGE and he co-led Kibaki's campaign adverts, policy formulation and communications.

Blogger Odegle Nyang narrates Real Lean Times after observing his stockbroker whose “expansion (was) informed by the huge volume of business and euphoria witnessed last year. But now most of their 14 teller booths are empty and those occupying them are visibly bored and yawning.” The brokers blame the downturn on the feeling that an opposition leader, Raila Odinga, could win the elections expected in December 2007 as voters “are ignoring the noise about economic growth, creation of jobs etc.” by the incumbent president.

He observes:

the situation really is grim in the stock brokers front. my favorite standard investment bank had expanded and moved into a new large office in the center of the town. the expansion informed by the huge volume of business and euphoria witnessed last year. but now most of their 14 teller booths are empty and those occupying them are visibly bored and yawning. but standard investment bank still is a good broker and their orders are still executed within 3 working days.

Another Blogger Riba Capital adds that multiple factors are causing the slump with foreign investors are being spooked by the elections and retail investors simply waiting for the initial public offer (IPO) of Safaricom, the country’s largest mobile phone company, which is excepted before the end of the year:

My take, is that multiple factors are coming into play at the same time.
There is the factor of institutional players (fund managers) crystallizing profits for the third quarter reporting period.
Then there is the heightened political situation as various political heavy weights take to the campaign trail making promises and hitting on their competitors from all angles, this factor affects more on foreign participants and retail investors who do not have any major links or contacts with the various political players.
The third factor but of which is not fully fledged is some investors liquidating their positions in preparation for the Safaricom IPO later in the year if all goes as planned.

The market has taken a bit of a knock, with a significant reduction in trading volumes and market prices after it had appeared to be recovering fully from the prolonged drop in share prices earlier in the year.
But this is likely to improve as fund managers mop up shares at discount prices and consolidate their portfolios. My take is that we should also be taking advantage of this time to buy into the stable and sound companies with a sound dividend payment policy.

Mobile phone company Safaricom has risen to become Kenya's largest company with profits of 17 billion shillings (about $250 million in 2006). However, it has been plagued by a mysterious shareholding matter – as the company which was officially declared and to be a partnership between the national landline operator Telkom Kenya (with 60%) and Vodafone - UK (with 40%) has now been found to have a third shareholder – through an unregistered company known as Mobitelea, which owns 5% of the shares.

Here’s a rundown on Safaricom:

Bankelele had earlier opined that the Safaricom IPO could be a crucial vote getter in an election year if it was well managed:

(Premium) Story in the Nation about the Cabinet being presented with a paper to approve the sale of 25% of Safaricom to the public.

This is a winning card this election year that will be foremost in the minds of investors and voters. A well managed Safaricom IPO before December could deliver more votes than needless voter expenditure or rhetoric from any leader.

John Maina places that mysterious shareholder issue on par with other Kenyan mega scandals like Goldenberg and Anglo Leasing:

Many questions are flying around on Whom, How, What, Why, When this mysterious company Mobitelea acquired the 5% which was previously 10%.

A quick background check on Mobitelea reveals that it is registered in Guernsey under 2 nominee companies. Talk about identity protection. Just wonder whether a travel down to this tax haven would reveal much more?

My concern is that having pulled through the Goldenberg and Anglo-leasing scandals, this may be another one in the making.

Coldtusker argues that 10% was stolen and not 5% of Safaricom by the mysterious company:

The crescendo over the, mobitelea stolen indirect 5% ownership in Safaricom, is rising. What many commentators are missing is that it was 10% (not 5%) that was stolen from every Kenyan Man, Woman & Child.

mobitelea - often referred to as moi biwott telecoms of east africa - had stolen 10% but sold 5% in 2002 to its partners in bribery, vodafone, when moi's proxy was going to lose the elections.

The way I figure it out is that Vodafone bought 40% of Safaricom from GOK but had to cough up 10% to mobitelea as “grease” money. A pity but vivendi had to cut a deal with naushad merali (the ty”con”) for the 2nd license.

Mars Group Kenya, an anti-corruption watchdog group, gives a rundown of findings by the Kenyan parliament who looked into the shareholding issue:

10% of Telkom (K) Ltd shares in Safaricom were irregularly transferred to Mobitelea Ventures without the consent of Treasury and that of the parent ministry according to the Fifteenth Report of the Public Investments Committee on the accounts of State Corporations 2007. The explosive Parliamentary Committee Report on Public Investments wants the Director of KACC to immediately institute investigations on the circumstances and manner in which the shares were transferred to Mobitelea with a view to taking appropriate action against any persons found culpable. The PIC also wants the Director of KACC, to include a progress report on the investigation in the Commissions quarterly report to the House for the next immediate period.

Wikileaks publication of a report from Kroll Associates sheds some light on who the shareholders may be.

However, Pesa Tu argues that the mystery shareholder is a non issue as far as Kenyan IPO investors are concerned, since Vodafone (UK) is the only aggrieved party to a private dispute with Mobitelea. He explains why the IPO must go on:

Why the IPO must go on
The Safaricom IPO will ignite significant foreign interest that will grow our markets and put Kenya in focus of all the top markets.The market Growth will create more jobs for everyone and grow the economy.

If we stop the IPO we can get back Mobitelea's stake
Ha, Not a chance the Mobitelea stake is parked in a private company Vodafone(K) Ltd.Government cant interfere with private property that is unconstitutional
Let me put the point across using a story:
There was once an old mzee who had 10 acres of land.He sold 4 acres to his Best Friend.The Best Friend then sold 1 Acre to a stranger the Mzee didn't like.The Mzee wanted that particular 1 Acre(that was sold to the stranger back).Do you think he got it ?

This is unfair Mobitelea's owners are getting away with free money
Life is unfair that why some people have first class degrees and are clerks while others have Certificates and are millionaires.Thats the case whether in USA or Kenya.

Citizen contribution is invited in the form of comments and anyone who has any interesting picture taken of a political event is also invited to send it in.

The blogs are mostly by the Nation senior editors and one of the current top ones is by the Managing Editor in charge of media convergence and new products, Chares Onyango Obbo, who, in one blog post, hails the demise of KANU – the former ruling party. He notes that:

Kanu has all but become a shell that cannot field a presidential within just one electoral cycle of losing power. And without a presidential candidate, which would have allowed the party to build a national machine and craft a centralised election strategy, it will be a miracle if it can field even half the number of Parliamentary candidates it did in 2002…there is also something of Shakespearean retribution in (former President) Moi who led Kenya through its worst period, suffering the humiliation of burying Kanu half-alive by giving up on it as a viable enough organisation to field, let alone win, a presidential candidate.

Kenya’ second largest circulating newspaper, The Standard, also has an election section that is, for now, bereft of interactive features.

Kenyan presidential and parliamentary elections are slated for December 2007.