http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.13Change: 0.02
R/$ = 12.06Change: 0.02
Au 1186.55 $/ozChange: -0.90
Pt 1119.50 $/ozChange: -5.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Nov 16, 2012

Brewer expands its African beer production

Back
Construction|LUSAKA|Africa|Ghana|Packaging|Projects|SABMiller|transport|Africa|Ghana|Lesotho|Malawi|Mozambique|Swaziland|Tanzania|Uganda|Zambia|Zimbabwe|USD|Club Pilsner|ℓ /y Plant|Packaging|Product|Supply Chain|Mark Bowman|Richard Farnsworth|Chibuku|Operations|Northern Zambia|South Sudan|Western Uganda
Construction||Africa|Ghana|Packaging|Projects|transport|Africa|Ghana|Tanzania|Zambia||||Packaging|||Operations|
construction|lusaka|africa-company|ghana-company|packaging-company|projects|sabmiller|transport|africa|ghana|lesotho|malawi|mozambique|swaziland|tanzania|uganda|zambia|zimbabwe|usd|club-pilsner|-y-plant|packaging|product|supply-chain|mark-bowman|richard-farnsworth|chibuku|operations|northern-zambia|south-sudan-region|western-uganda
© Reuse this



The world’s second-largest brewer, SABMiller, has invested $16-million over the last 18 months in the expan- sion of its 50-year-old African beer brand, Chibuku, into six other countries on the African continent. This investment has enabled the brand to be sold in more than double the number of markets where it was sold at the start of 2011.

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 h 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 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 /y in Lusaka, Zambia, for the past 12 months.

A 250 000 /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.


Meanwhile, the expansion also provides a guaranteed market for the smallholder farmers through which SABMiller sources the maize and sorghum used in production.

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
Creamer Media Senior Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Brewery and Winery News
Brewing and bottling company SABMiller CEO Alan Clark initiated further realignment of responsibilities within the group’s executive committee last month, following the combination of the company’s South Africa and Africa business unit into a single region. The...
BIODIVERSITY AND WINE INITIATIVE The BWI encourages wine producers to farm sustainably and express the advantages of the Western Cape’s abundant diversity in its wines
The winners of this year’s Nedbank Green Wine Awards were announced at Cape Town-based Myoga restaurant last month. The awards honour wine farmers who endeavour to reduce the impact of farming on their land and farm more sustainably. Sixteen top achievers were...
Hotel group Tsogo Sun spent just under R3.2-million at two wine auctions this year, namely the Nederburg and Cape Winemakers Guild auctions, highlighting its commitment to offering guests at its hotels an exceptional quality food and beverage experience. The group...
More
 
 
Latest News
IMD World Competitiveness Center director Arturo Bris
Updated 1 hour 30 minutes ago South Africa slipped one position, from 52 to 53, in the latest world competitiveness ranking, which highlighted power and infrastructure shortfalls, high youth unemployment, as well as inadequate education and technical skills availability as key challenges to the...
Updated 4 hours ago JSE-listed Dipula Income Fund reported that its distributable earnings grew 33.2% in the six months ended February 28, translating into a combined growth of 6.8% in distributions for both A- and B-linked units. The distribution attributable to the A-linked units was...
Updated 4 hours ago JSE-listed Growthpoint Properties’ Kirstenhof Office Park, in Johannesburg, has become the hundredth building in South Africa to achieve a Green Star SA certification from the Green Building Council of South Africa (GBCSA), securing a 5-Star Green Star: Existing...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
FREDRIK JEJDLING Sustainability becomes an important part of a business’ decision-making process
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96