Carbacid (CO2) Limited, which is a company in Kenya has benefited from food and beverage firms such as EABL, Coca Cola, and flavoured juice makers, because of their increased demand for carbon di oxide that acts as a preservative.
In 2012, Carbacid reported a net profit of Sh389 million, 28.8 per cent higher as compared to Sh302 million in 2011. The increase was mainly due to the growing demand for carbon dioxide, which accounts for about 90 per cent of its sales, lifting its revenues by 60 per cent to Sh921 million, according to Stratlink Global, a research firm based in Nairobi. And in Jan 2013, the company’s share price rose by 5.9 per cent to close at Sh125, as per the data given by a stock exchange named Bource.
In Kenya, the companies namely SABMiller, a global beer maker and Pepsi, a soft drink producer along with the growing consumption of beer brands and flavoured juices are the main force behind the demand for carbon dioxide, which is the key product of Carbacid, according to Stratlink Global.
There is an increased market growth in East Africa’s food sector, mainly because of the global beer maker namely SABMiller in Tanzania, which has provided new opportunities to the manufacturers. Beer companies have made profits in the stock markets across East Africa, and their performance is expected to grow, because of the increased demand from the middle class, according to the research firm.
EABL, which is East Africa’s largest alcohol beverage company, has now started to operate its own carbon dioxide recovery unit, which will mostly decrease the Carbacid’s market share, as per the reports given by the research firm.