S AFRICA: South African Breweries plans US$80m maltings plant

By | 27 February 2013

The investment is designed to cut down on barley imports

The investment is designed to cut down on barley imports

South African Breweries (SAB) has revealed plans to build a new ZAR700m (US$78.9m) maltings plant in its domestic market, allowing it to cut down on barley imports.

Work on the plant, which will be located in Guateng, south of Johannesburg, will start this year and is due to finish by 2015, the SABMiller subsidiary announced on Monday (25 February). It will produce around 130,000 tonnes of malted barley annually, the company said.

“The new maltings plant will have significant cost saving and growth benefits for SAB,” said  MD Mauricio Leyva. “It will allow us to reduce our exposure to volatile international markets and replace a significant share of our imported malt and barley with local barley.”

SAB currently sources around 65% of its barley locally. Once the new maltings plant is operating, this should rise to between 90% and 95%, the company said. 

Levya added: “We will also strive to ensure we maximise local industry involvement in the construction of the new plant in order to help develop the communities in which we operate.”

Last week, SABMiller's outgoing CEO Graham Mackay talked up the brewer's local approach in global markets at the Consumer Analyst Group of New York's annual conference in Florida.
View Larger Map

Expert analysis

Sorghum Beer in Africa to 2017: Market Guide

Canadean’s, "Sorghum Beer in Africa to 2017: Market Guide" provides in-depth detail on the trends and drivers of the Sorghum Beer in Africa to 2017 market in Africa. The quantitative data in the report (historic and forecast consumption values) analyses the dynamics in the African countries, providing marketers with the essential information to understand their own and their competitors’ position in this market and the information to accurately identify where to compete in the future. The report provides data to help companies in the Sorghum Beer in Africa to 2017 industry better understand the changes in their environment, seize opportunities and formulate crucial business strategies.

Sectors: Beer & cider

Companies: SABMiller

View next/previous articles

Currently reading -

S AFRICA: South African Breweries plans US$80m maltings plant

There are currently no comments on this article

Be the first to comment on this article

Related research

SABMiller plc : Consumer Packaged Goods - Company Profile, SWOT & Financial Report

Canadean's "SABMiller plc : Consumer Packaged Goods - Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profile contains a company overview, key facts, major products and servic...

SABMiller Plc in Beer (World)

The world’s second largest brewer, SABMiller’s geographic profile provides a strong platform from which to exploit forecast volume growth in emerging markets. This profile analyses the company’s employment of strategic alliances and emphasis on local...

Global Brewer Analyser Report 2012

A complete volume analysis of the domestic and international activities of the world’s leading beer companies. The 2012 Global Brewer Analyser Report is an indispensable reference guide to the world’s leading brewing groups. As well as providing g...

Related articles

ZAMBIA: SABMiller puts faith in Chibuku Super with US$24m plant

SABMiller is to increase production of its Chibuku Super brand in Zambia with a new US$24m brewery.

UGANDA: SABMiller completes second brewery

SABMiller has opened a second brewery in Uganda as it seeks to relieve capacity pressures in the country.

US: MillerCoors agrees deal with workers to avert strike

MillerCoors has agreed a deal with union workers in Milwaukee after the threat of strike action over pay and benefits.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page