SABMiller opened its first greenfield brewery in Onitsha, south-eastern
Nigeria on Thursday as the London- and Johannesburg-listed company moved
to consolidate and grow its position on the continent.
"Work began on the Onitsha site in 2011 following an investment of over
US$100-million, making it the largest single investment in Anambra State
for almost 20 years," SABMiller said in a statement.
"Over the past five years we have invested over $1-billion in Africa,"
said Mark Bowman, managing director of SABMiller Africa. "Today's
opening is an indication of our commitment to increase our capacity
further and to consolidate our position on the continent while
contributing positively to the local communities in which we operate."
According to Business Day, more than 90% of Africa's $11-billion beer
market is controlled by four big brewers, SABMiller, Heineken, Castel
and Diageo - all drawn by the continent's rapid
economic and population growth.
Producing 1.9-million litres of beer a day and employing some 900
people, South African Breweries' Alrode, Johannesburg brewery is the
largest in the country.
The Onitsha brewery brings SABMiller's total number of sites in Nigeria
to four, having first entered the market in 2009 through its strategic
alliance with Castel.
Nigeria is Africa's second-largest beer market and is growing at around
6% per annum. However, average per capita consumption is still
relatively low at around 10 litres per year, compared to an average of
around 60 litres in Africa's largest beer market, South Africa.
SABMiller's portfolio of brands in Nigeria includes Grand Lager, Trophy Lager, Castle Milk Stout, Castle Lager, Eagle and Redds.
The new brewery will commence production of beer and malt with an annual capacity of up to 500 000 hectoliters.
Immediate direct job creation will see 180 local people employed, with
that number increasing to approximately 450 as production volumes grow.
"Local raw materials such as sorghum and maize will be used where possible, supporting
the local economy and the government's efforts toward poverty eradication and job creation," SABMiller said.
SAinfo reporter
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