Multinational drinks companies continue to invest in Africa
Addis Ababa, Ethiopia– Diageo, owner of brands such as Johnnie Walker, Smirnoff and Guinness, recently boughtÃ‚Â EthiopiaÃ¢â‚¬â„¢s Meta Brewery for US$225 million.
Meta Brewery is EthiopiaÃ¢â‚¬â„¢s second largest beer producer, with a volume share of around 15%. From its brewery close to the capital Addis Ababa, Meta Brewery produces lager brands Meta and Meta Premium.
Diageo said in a statement that the acquisition will give it access to EthiopiaÃ¢â‚¬â„¢s fast growing beer market, while complementing the companyÃ¢â‚¬â„¢s existing premium spirits business in the country.
Driven by strong GDP growth and greater disposable incomes, the Ethiopian beer market is expected to grow by more than 10% every year until 2015.
Ethiopia is attracting increasing attention as a business destination, so much so that Addis Ababa has been selected as the location for the 2012 World Economic Forum on Africa. Ã¢â‚¬Å“We know that many of our members from Africa and around the world are extremely interested in the opportunity to get a view of what is going on in that exciting country,Ã¢â‚¬Â commented Robert Greenhill, managing director and chief business officer of the World Economic Forum.
DiageoÃ¢â‚¬â„¢s competitors Heineken and SABMiller have also recently made investments in Ethiopia.
Commenting on the deal, Nick Blazquez, president of Diageo Africa, said: Ã¢â‚¬Å“I am delighted that we are able to announce the completion of this acquisition which represents a key milestone in achieving our strategy of participating at scale in beer and spirits in growth markets in Africa. Meta is a strong national brand that has great heritage in Ethiopia. We will invest behind the long-term growth of the brand, the Meta business, and the wider communities in Ethiopia.Ã¢â‚¬Â Ã‚Â Read Full Story