Komari Beverage, one of Ethiopia’s youngest and fastest growing alcoholic drinks producers, is set to change hands after a foreign backed takeover collapsed, clearing the way for a local buyer, Capital newspaper reported.

The company, founded in 2021 by Ethiopian investors and known for its Arada brand, had agreed in October 2024 to be acquired by Heineken. However, people familiar with the matter told Capital that the deal later unravelled as changes in Ethiopia’s foreign exchange regime altered the economics of the transaction.

According to sources cited by the newspaper, adjustments to the official exchange rate and the sharp depreciation of the birr complicated valuation and payment mechanisms. The shift created a gap between Heineken’s dollar denominated investment expectations and Komari’s valuation in local currency, making the acquisition difficult to complete.

With Heineken stepping back, Awash Wine Share Company entered negotiations to acquire Komari and has now reached an agreement to take over the business, Capital reported. The deal is at an advanced stage, though neither party has disclosed its financial terms.

Komari operates a production facility in the Cheki area of North Shoa Zone, built at a cost of 29 million US dollars, with a capacity of 27,000 bottles an hour. Its fruit flavoured alcoholic drinks, including lemon, apple and pineapple varieties, have positioned the brand as an alternative to traditional beer and spirits, particularly among younger consumers.

For Awash Wine, Ethiopia’s oldest beverage producer, the acquisition represents a move to diversify beyond its core wine business. Executives see Komari’s hard seltzer style products as a way to strengthen the company’s competitive position in an increasingly crowded market.