http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.17Change: 0.03
R/$ = 11.07Change: 0.01
Au 1238.28 $/ozChange: -4.47
Pt 1258.00 $/ozChange: 3.00
 
 
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 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|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
Construction||Africa|Ghana|Packaging|Projects||Africa|Ghana|Tanzania|Zambia||||Packaging|Transport||Operations|
construction|lusaka|africa-company|ghana-company|packaging-company|projects|sabmiller|africa|ghana|lesotho|malawi|mozambique|swaziland|tanzania|uganda|zambia|zimbabwe|usd|club-pilsner|-y-plant|packaging|product|supply-chain|transport-industry-term|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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Brewery and Winery News
Rapid and accurate in-line measurement of alcohol is importantin the distilling industry to ensure successful and profitable management of the process. This applies equally to modern and traditional plants, particularly in the current economic climate states liquid...
Economic consultation firm Econometrix completed a study regarding the Control of Marketing of Alcohol Beverages Bill and found contradictory evidence of the results of the country’s proposed alcohol advertising ban. The study was conducted locally and...
South Africa’s wine consumption grew from 6.1% in 2011 to 7.2% in 2012, owing to increased consumption by black South Africans, states CEO of official wine education body in South Africa the Cape Wine Academy and Cape wine master Marilyn Cooper. “Consumption...
More
 
 
Latest News
Updated 2 hours 17 minutes ago Stand a chance to win a CAT Phone.  Subscribe to Engineering News & Mining Weekly at a 30% discounted rate. The weekly print magazines will be posted to your preferred postal address. Also gain online access to: Project Browser - providing an overview of latest...
The Cape Town International Convention Centre (CTICC) has outperformed its targets over the past financial year and contributed R3.1-billion to the gross domestic product in the 2013/14 financial year. CTICC CEO Julie-May Ellingson said the convention centre had been...
Public Enterprises Minister Lynne Brown
Public Enterprises Minister Lynne Brown has released details of the remuneration of the chairpersons and nonexecutive directors of the various State-owned company boards falling under her Ministry. The remuneration figures, which are attached, are based on figures...
More
 
 
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
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
IAN EVANS AirWatch file synchronisation and sharing system was initially designed for a large airline company
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...
 
 
 
 
 
 
 
 
 
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