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Home | News | Breweries | SABMiller plans Namibian brewery

SABMiller plans Namibian brewery

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Castle on tap: Carling Black Label also brewed

Greenfield project to begin production in 2012

SABMiller today announced a US $34 million greenfield brewery project in Namibia that when completed should allow it to compete more effectively against the country’s dominant player, Namibia Breweries.

The brewery is to be located on 7.2 hectares outside Okahandja, a city 70 kilometres north of the capital, Windhoek. Contracts have yet to be agreed but construction is scheduled to commence in the second half of 2010. A SABMiller spokesman in London estimates it will take 18-24 months before the brewery is completed, meaning production should begin in mid- to late 2012.

Two brands are to be brewed, Castle and Carling Black Label. At the moment South African Breweries brands are imported by truck into Namibia. Despite import duties and a price disadvantage, SAB claims 22% of local market share. The upshot is that a brewery inside the country will allow SABMiller to compete more effectively on price.

“What this will allow us to do is put more efficient brands and stock in place,” said the spokesman. “Our brands will be far more attractive to consumers in terms of value and brand portfolio.”

SABMiller Namibia (Pty) will be 60% owned by SABMiller, with the remaining 40% owned by local Namibian partners in a broad-based black economic empowerment (BEE) initiative. The BEE component comprises a 20% stake owned by Onyewu Investments (Pty) Limited and 20% by three regional charitable trusts.

SABMiller estimates an overall Namibian beer market of 860,000 hectolitres with per capita consumption of 40 litres.

Photo credit: One Red Eye/Philip Meech

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