Filip Łajkowski, Senior Vice President at Mutalo Group, speaks about the energy drink market in Africa.

Filip Łajkowski is an experienced business professional with a degree from a Warsaw School of Life Science. Filip is leading an energy drink sector in Mutalo Group and oversees new market expansions.

Q: Filip, as a professional at Mutalo Group, you’re knowledgeable about the huge beverage sector in Africa. Tell me a little bit more about it. What is it like today?

F: Indeed, it’s a huge business and a good opportunity for expansion. Today, the value of the beverage market in Africa is estimated at $68 B, and, to one’s surprise, the energy drink sector holds as much as $7B of that value.

Q: Those numbers are definitely astonishing. Filip, what about the future of that market? Where is it going?

F: We can see that the market is definitely not slowing down. Actually, the exact opposite is happening. Due to rapid growth of consumption, the beverage market in Africa is estimated to hit $100 B by 2025. Despite the plummeting oil prices, the consumption levels continent-wide are still experiencing nearly double-digit growth.

Q: What are some of the challenges that companies may face if they’re planning on entering the market?

F: There’s definitely growing competition in many beverage sectors, however, only a few can provide what the market really needs.

Q: And what is that exactly?

F: First of all, quality never gets old; high quality ingredients are key. Second of all, every customer wants good value for money. In addition to that, from what I have noticed, every product needs to have its own usp- it cannot be just another bland product that’s set to enter the competitive market. And it is imperative that businesses remember that.

Q: What do you think are the biggest challenges in the energy drink sector?

F: There are five general ones that always come to mind. There’s definitely no marketing support and many new products that enter the market are cheap Red Bull imitations. Usually, those same imitations have awful packaging and no message or meaning to the potential customer. In addition, there’s stiff marketing with no local adaptation whatsoever.

Q: What are the company plans for the future?

F: We want to keep making products that are tailored to the African people. We’re also planning on expanding into new countries, strengthening the position of our leading energy drink KABISA. In addition, we’re definitely looking forward to expanding our portfolio with new types of drinks.