Anheuser-Busch InBev (AB InBev) owners of International Breweries, and the world’s largest beer maker has revealed that its new $250 million brewery being built in Sagamu, Ogun-State will commence operation in the middle of this year.
The Belgium-based brewer says it expects revenue and core profit (EBITDA) to grow strongly again in 2018 which boosted its presence across Africa, and some of the world’s fastest growing economies.
Recall that SABMiller Plc, then competitor, had approached the owners of Heineken NV (HEIA) about an offer for the smaller brewer, to help defend itself against an hostile takeover by Anheuser-Busch InBev NV (ABI). Anheuser-Busch InBev (AB InBev) however clinched the $103 billion SABMiller deal after the British brewer’s investors approved a deal that unites the world’s two biggest beer makers about a year after it was proposed.
The Head of its Africa operations, Ricardo Tadeu said a new plant became necessary in order to address a supply constraint issue that had limited sales of the company’s products to areas close to existing plants.
In his words
“We have a clear strategy to keep a good level of growth in Africa based on developing our brands in different segments of the market.”
The company also intends to introduce new products Budweiser and Eagle beer into the market. Assuring of its company’s commitment to the local content policy of the government, he noted that 70% of the company’s raw materials such as cassava, millet and sorghum as well as packaging materials are sourced locally.
When completed, the sagamu factory will be one of the company’s biggest brewery plant in Africa. Nigerian Breweries owned by Heineken is also making its own acquisitions locally as well setting the stage for a competitive local market that has seen cheaper beers gain market share.