Heineken opens S. African plant
Sedibeng at full capacity for World Cup
Heineken’s bridgehead into SABMiller-dominated South Africa, a €344 million brewery near Johannesburg, has had its official opening.
The facility gives Brandhouse - a joint venture between the Dutch brewer, Diageo and Namibia Breweries - its first foothold in the country after it won back South African rights for Amstel from South African Breweries (SAB) in 2007.
Sources close to the situation have told BG the 3 million hl plant will be at full capacity in the run up to the football World Cup, kicking off in South Africa in June, and contingency plans are in place in case of problems.
“With the start of local production, the economies of the venture will now start to deliver,” said Heineken Africa’s managing director Tom de Man, speaking at yesterday’s opening.
“I’m proud that we made big progress in South Africa which will further enhance Heineken’s global growth profile.”
After winning arbitration in March, 2007 over the South African rights for Amstel, which for the previous 40 years had belonged to SAB, Heineken was forced down the expensive route of importing the brand from Europe.
The plant is currently brewing Amstel, Windhoek Lager and Heineken for the South African market, and is serving as a supply hub for Diageo’s Smirnoff Spin and Storm brands. Capacity will be increased to 4 million hl by September.
Built on an 83 hectare site just south of Johannesburg, the Sedibeng Brewery employs 225 staff. 75% of the facility is owned by Heineken, with the remaining 25% belonging to Diageo. No figures on the efficiency of the plant were available.
By Rob Brown
Based on the following sources:
http://www.brewersguardian.com
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