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AB InBev estimates total investments in its Sagamu brewery to be $400 million

Richard Rivett-Carnac, International Breweries

Anheuser-Busch InBev (AB InBev), the parent company of International Breweries Plc, disclosed that the total investment the company has made in its new brewery in Sagamu, Nigeria, should sum up to about $400 million.

The company’s Chief Executive Officer, Carlos Brito, disclosed this on Wednesday while responding to reporters’ questions at a media briefing in Johannesburg, South Africa.

He further disclosed that the brewery has already started operations, even as capacity will be expanded in phases.

“Nigeria (is) becoming a more and more important market as we grow in that market. I mean we’re growing double digits, we didn’t grow in the past as fast because we were lacking capacity and now that we have capacity, strong brands and (a) great group of people we’re challenging the status quo there.”

AB InBev’s Nigerian operation: The company made a huge entrance into the Nigerian beer market in 2018, establishing a brewery worth about $250 million. The plan was to make Nigeria the company’s second largest operation in Africa, behind the South African operation. The brewery is situated at KM 3, Flowergate Industrial Scheme, along the Sagamu-Abeokuta Expressway, Ogun State.

Following the launch of the brewery, the company introduced the American lager brand, Budweiser, which is also known as the supposed ‘King of beers’.

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Heightened competition: With the establishment of its new brewery in the Nigerian market, Nigeria’s two biggest brewers, Heineken-owned Nigerian Breweries and Diageo’s Guinness Nigeria Plc, will be up on their toes for a really big competition.

About the company: AB InBev was formed through InBev (itself a merger between Interbrew from Belgium and AmBev from Brazil) acquiring Anheuser-Busch from the United States.

It is a multinational drink and brewing holdings company based in Leuven, Belgium. Additional main offices are located in São Paulo, New York City, London, St. Louis, Mexico City, Bremen, Johannesburg, and others.

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