Anheuser-Busch InBev (AB InBev), parent company to South African Breweries (SAB), has reaffirmed its role as a driver of economic growth as the brewer negotiated a deal with local can manufacturer Bevcan to export an additional one-billion locally manufactured cans across the Atlantic to its operations in South, Central and North America between 2020 and 2021.
As a result of this deal, Bevcan has reignited a decommissioned line solely for the purpose of producing and exporting cans for the Americas.
This will provide a much-needed boost of R1.2-billion, or a 20% increase, to the South African beverage canning industry, which supports thousands of livelihoods at a time where economic growth and unemployment are experiencing record lows.
This partnership demonstrates the company’s commitment to growing the nation’s economy by buying local and supporting local businesses in the markets that it operates, a statement on November 2 said.
During these trying economic times and having endured “two unwarranted bans on [the sale of] beer”, the brewer is steadfast in rebuilding its local business, as well as those of its value chain partners, with the ultimate goal of building a sustained economy.
This boost to the South African canning industry will add an extra layer to the already significant economic contribution of the beer industry, with over one-million livelihoods said to be dependent on the alcohol industry’s value chain.
About 140 000 of these livelihoods are dependent on SAB alone.
By being part of the global AB InBev family, SAB believes this deal is proof that there are global opportunities that can be leveraged for the benefit of South Africa.
By bringing global demand to South Africa's shores, SAB is able to boost demand locally in order to inflate a depressed local economy and assist in keeping the country’s economy afloat. The canning industry alone provides an income source for thousands of direct employees.
SAB believes the vastness of its locally rooted supply chain and the extent of its global reach will no doubt provide more opportunities to increase its contribution to the economic growth of South Africa in the future.