In evidence

Three big beverage players focus on Africa

25th June 2019

Numerous food and beverage multinationals have chosen Africa for their investments.

In March, Heineken officially opened its first brewery in Mozambique where it will produce the new Txilar brand beer using locally grown maize as well as other international brands such as Heineken, Amstel, Sagres and Strongbow.
The $100 million investment will strengthen the Dutch group’s presence in this fast-growing market (GDP growth 3.5% in 2018), where it has had a sales and marketing office since 2016. Located in the province of Maputo, Heineken Mozambique has a production capacity of 800,000 hectolitres of beer and employs 200 people, 96% of whom are Mozambican. Beer consumption in the country currently stands at 10.5 litres per capita.

In another development involving the beer segment, AB-InBev has announced that it will invest a total of up to US $400 million in the newly built Sagamu Brewery in Nigeria. The brewery has already begun operation following the initial investment of US $250 million and capacity will be expanded in phases up to the total investment figure.
The Belgian giant is reporting double-digit growth in Nigeria, where it has four breweries. The group has also announced further investments in South Africa, where it already owns Johannesburg-based brewery South African Breweries (SAB). The multi-million-dollar investment by AB InBev seeks to consolidate its position in the continent ahead of its rivals, including Heineken.

Coca-Cola recently launched a new Rwenzori brand natural water bottling line at the Coca-Cola Beverages Africa (CCBA) factory in Uganda.
The line has a capacity of around 24,000 bottles/hour and involved an investment of US $10 million. Coca-Cola Beverages Africa runs three subsidiaries in Uganda: Century Bottling Company for Coca-Cola, Rwenzori Bottling Company which produces mineral water, and Plastic Recycling Industries which recycles plastic waste.

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