Nov 16, 2012
Brewer expands its African beer productionBack
Construction|LUSAKA|Africa|Ghana|Innovation|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
© 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
Creamer Media Senior Deputy Editor Online
To subscribe email email@example.com or click here
To advertise email firstname.lastname@example.org or click here
Other Manufacturing News
The Evraz Highveld Steel and Vanadium business rescue practitioners will now seek to sell individual components of the enterprise as going concerns following a failure to consummate the sale of the entire business to International Resources Limited (IRL), of China....
The metals and engineering sector, which has been underperforming in recent years, will come under microscopic scrutiny when stakeholders from business, labour and government meet at the second Southern African Metals and Engineering Indaba in May. Former Deputy...
South Africa's Bidvest Group Ltd on Monday said it plans to spin off and separately list its food business on the local stock exchange, beginning the industrial conglomerate's latest attempt to separate its biggest division. Bidvest, a sprawling company involved in...
Updated 7 hours ago While international companies are keen to invest in South Africa, they are unable to meet the conditions of employment that have been extended to non-parties, forming part of a myriad of reasons why the the Free Market Foundation (FMF) is challenging the current...
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
This Week's Magazine
Power and automation company ABB is in the launch phase of its highest payload, multipurpose industrial robot, the IRB 8700. The robot has a reach of 3.5 m and can handle a payload of up to 800 kg. “When designing the IRB 8700, we emphasised reach and payload, as...
Identity and Access Management (IAM) is a critical facet of a connected security ecosystem, as controlling the confidentiality, integrity and authorisation of data access and use is key to securing new digital business channels. However, companies face several...
Data underpins digital business models, the digital economy, the Internet of Things and the fundamental changes in the ways people interact and protecting data is crucial to securing new ways of doing business, says T-Systems South Africa information and...
The City of Cape Town will issue a tender for the procurement of electric buses for its MyCiTi service, in line with the council’s commitment to lower its carbon footprint, says executive mayor Patricia de Lille. The tender, to be advertised early in February, will...
The iSimangaliso Wetland Park Authority signed a R10-million contract last month with local tailings storage facility specialists Cyclone Engineering Projects to remove about 100 000 m3 of dredge spoil obstructing the natural course of the uMfolozi river, in...