SABMiller to build Uganda brewery
FMCG SUPPLIER NEWS
Business Day - Feb 10th, 09:48
SABMiller , the world’s second-largest brewer by volume, said it would spend $80m on a new brewery at its Ugandan subsidiary, Nile Breweries, to meet growing local demand.
The new brewery which will be constructed in Mbarara, western Uganda, the fastest-growing regional beer market in the country, will double the company’s capacity to 3,6-million hectolitres by next year.
The total Ugandan beer market had been growing, the company said, with volumes up 28% for the year ending December.
The London-based brewer said the Mbarara site would provide employment for about 140 people directly and will brew the bulk of Nile Breweries portfolio of beers, including Nile Special, Club Pilsener, Eagle Extra and Eagle Lager. Eagle beers are brewed using sorghum, a locally grown crop obtained from 9000 smallholder farmers, the company said.
SABMiller Africa MD Mark Bowman said the investment demonstrated its commitment to investing in Africa. "The development is also testament to the success of our local raw material sourcing strategy in Uganda, which has provided a blueprint for other operations across Africa. "
Associate director at Ernst & Young’s Africa b usiness centre, Victor Kgomoeswana, said: "Uganda in particular has about 30-million people in a smaller surface area compared with Tanzania or Kenya, which favours the growth of consumer lifestyle products such as beer."
The development of the new brewery follows a $29m investment to expand capacity at the existing Jinja site in 2009 and a cumulative $25,6m investment to develop maltings and effluent treatment plants last year, bringing the total spend for the country to about $130m over the past three years, SABMiller said.
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