S AFRICA: South African Breweries plans US$80m maltings plant
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
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 repor...read more
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 emplo...
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...
This report comprises of high level market research data on the Australia beer industry, published by Canadean. The report covers total market (on- and off-premise) and includes valuable insight and ...
Asia Pacific Breweries is Heineken’s joint venture in Singapore, with a variety of brands and consumer beverages that enjoy prominence in their local markets. The venture is crucial to the firm's grow...
- PepsiCo to consider more re-franchising - CEO
- Cleaning China's seedier side brings Remy balance
- Focus - SABMiller's Q1 Performance by Region
- just The Preview - SABMiller's Q1
- just Five Years Ago: A-B InBev sells Oriental
- Diageo's Captain Morgan Facebook ad banned
- Diageo faces public consultation over W&M sale
- William Grant silent on Drambuie bid talk
- Bacardi to fight US football team legal action
- Alcohol retailer group appoints new chairman