Nov 16, 2012
Brewer expands its African beer productionBack
Construction|LUSAKA|Africa|Ghana|Packaging|Projects|SABMiller|Africa|Ghana|Lesotho|Malawi|Mozambique|Swaziland|Tanzania|Uganda|Zambia|Zimbabwe|USD|Club Pilsner|ℓ /y Plant|Packaging|Product|Supply Chain|Transport|Mark Bowman|Richard Farnsworth|Chibuku|Operations|Northern Zambia|South Sudan|Western Uganda
© Reuse this
The brand was initially sold only in Bot- swana, Malawi, Zambia and Zimbabwe, but is now also available in Mozambique, Ghana, Swaziland, Tanzania, Lesotho and Uganda.
SABMiller expects Chibuku volumes in the six new markets to total more than 500 000 hℓ by the end of the financial year ending March 2013.
The brand’s expansion has created 200 new direct jobs at SABMiller’s Chibuku-producing breweries and a further 1 500 indirect jobs in the supply chain and distribution network.
Chibuku, which is sold in 1 ℓ cartons, is an opaque beer based on traditional African reci- pes and brewed using maize and sorghum.
It is a low-alcohol beer that ferments in the package, with the alcohol strength increasing from 0.5% alcohol by volume (ABV) on the first day of packaging to as high as 4% ABV on day five, before it expires. Given its short shelf life, it must be brewed and consumed in the country where it has been brewed.
Meanwhile, a new variant, Chibuku Super, was launched in Zambia in September. Chibuku Super is lightly carbonated and pasteurised, giving it a fixed alcohol content of 3.5% ABV.
Chibuku Super is sold in polyethylene terephthalate packaging. Its longer shelf life brings its distribution model closer to that of clear beer, which can be distributed in the rest of Africa.
SABMiller notes that Chibuku Super has been brewed successfully on a small commercial basis of 350 000 ℓ/y in Lusaka, Zambia, for the past 12 months.
A 250 000 ℓ/y plant was also commissioned in Kitwe, in northern Zambia, in September.
New Chibuku Super production lines will also be implemented in Mozambique and Zimbabwe by the end of this year.
Further, following successful pilot schemes in Ghana, Mozambique, Swaziland and Tanzania, construction work on full-scale Chibuku production facilities in these countries have started and will be commissioned by the end of this financial year, says SABMiller media relations manager Richard Farnsworth.
The Chibuku pilot plant in Lesotho, which was commissioned in September, will start commercial sales in the next few months, with possible plans to produce Chibuku Super in future.
In Mbarara, a town in western Uganda, construction work on a new 3.6-million hecto- litre plant began earlier this year and is expected to be commissioned in early 2013, says Farnsworth.
“The plant will initially produce Chibuku and other clear lagers, namely Nile Special and Club Pilsner, with the possibility of producing Chibuku Super in future,” he adds.
SABMiller says its expansion of Chibuku is part of its strategy to produce more affordable beers for lower income consumers in Africa and to reduce the often unsafe ‘informal’ alcohol market.
SABMiller’s Farming Better Futures initiative enhances the role that small- holder farmers in South Sudan, Zambia, Tanzania, Uganda and Mozambique play in the brewer’s value chains.
In the year ending March, SABMiller sourced maize and sorghum from about 40 000 smallholder farmers in Africa.
The farming projects involving smallholder farmers ensure that they have access to tools, skills, credit and markets to enable them to earn an income. It also creates jobs and ensures more food crops for local communities.
Further, by sourcing materials locally, SABMiller has a stable and cost-effective supply of crops from which to brew its beer. This enables it to reduce transport costs, shorten supply lines and ensure high-quality raw materials for the breweries.
“We have been investing heavily in growing capacity and staying ahead of demand in Africa. The expansion of our Chibuku operations illustrates how we are driving our affordability strategy and product innovation and maintaining the momentum of our Farming Better Futures programme through this continued investment,” says SABMiller Africa MD Mark Bowman.
SABMiller’s objective is to source, on average, more than 50% of materials from local markets over the next two years, rising to as high as 100% of materials in Uganda.
Edited by: Chanel de Bruyn© Reuse this Comment Guidelines (150 word limit)
Other Manufacturing News
Updated 6 hours ago Master engineer and engineering consultant Bert Chapman has created an educational disc of engineering training materials based on real engineering problems, including their solutions, for engineers entering industry. The disc covers more than 35 electrical,...
Updated 6 hours ago Trends in the steelmaking industry have shown that local access to good-quality scrap is being hampered by the increasing exports of this material.
Updated 6 hours ago The establishment of proper liaison channels between government and private enterprises regarding funding for manufacturing projects can guarantee that South Africa's manufacturing sector remains internationally competitive, says business consulting and advisory...
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
Updated 6 hours ago In the next 20 years, it was expected that, in Africa, more people would live in cities and towns than in rural areas, United Nations Habitat executive director Dr Aisa Kirabo Kacyira said at the Human Settlements Indaba that took place earlier this month in...
Updated 6 hours ago Tough-talking Human Settlements Minister Lindiwe Sisulu has committed government to building 1.5-million low-cost houses over the next five years, telling the Human Settlements Indaba in Johannesburg on Wednesday that the State would achieve this target through the...
Updated 6 hours ago Over the past 20 years there has been persistent concern about deindustrialisation in South Africa, as well as the fact that locally produced manufactured products have been increasingly displaced by imports.
Updated 6 hours ago Financial agreement for Ghanian independent power producer (IPP) Cenpower Generation Company’s $900-million, 350 MW combined-cycle gas-turbine power plant was finalised earlier this month, paving the way for the project’s construction to begin before 2015 in Tema,...
Updated 6 hours ago The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted last week that recommendations were being considered to “detect and...