Heineken is looking to reap rewards from Ethiopian growth

Heineken is looking to reap rewards from Ethiopian growth

Heineken is to build a 1.5m-hectolitre-a-year brewery in Ethiopia as it targets growth in the fast-developing country. 

Construction on the Kilinto, Addis Ababa plant will begin “in the near future”, a Heineken spokesperson told just-drinks today (5 March). The brewery is expected to be operational by the second half of 2014.

It will be Heineken's third, and largest, brewery in the country after the state-owned Bedele and Harar plants it acquired in 2011. At the time of purchase, the two breweries had a combined market share of 18% with brands such as Bedele, Harar, Hakim Stout and Harar Sofi. The Kilinto plant will produce Harar, Bedele and brand Heineken beers, Heineken said.

Plans for the new brewery were announced after Heineken and Dutch Government representatives visited Ethiopia last week to sign a memorandum of understanding with officials. The memorandum launched a four-year malt barley programme to improve the quality and supply quantities of malt barley in Ethiopia.

Heineken said the beer market in Ethiopia, Africa's second-most populated country,  has doubled in the past five years, and has strong potential for expansion.