Large fermentation tanks arrive at Heineken’s greenfield brewery

HeinekenAddis Ababa, Ethiopia – The new Heineken greenfield brewery in Kilinto, near the outskirts of Addis Ababa received its first fermentation tanks on Friday.

The journey of the six tanks took approximately 6 weeks via Djibouti.

In 2012, the construction of a new greenfield brewery was announced, which will be operational later on this year. According to a statement sent by the brewer, this will make it the largest brewery in Ethiopia, with a production capacity of 1.5 million hectolitre per year on a 25ha plot, to meet the ever growing consumer demand in Ethiopia.

Heineken in Ethiopia initially invested EUR 120 million when it bought Bedele Brewery SC and Harar Brewery SC in 2011. To upgrade both breweries and to increase their capacity Heineken in Ethiopia invested an additional EUR 45 million, in line with its business plans, notably in the quality of its processes and products, as well as in the sustainability of its breweries. In addition, it is investing in the transfer of know-how, as well as in the training and development of its people to further develop capabilities and efficiencies. The investment cost (CAPEX) for the new greenfield brewery is over EUR127 million.

Johan Doyer, Managing Director of Heineken in Ethiopia said, “This is an exciting day for us, marking a milestone in the construction phase of the new greenfield brewery. We are making positive progress and in line with our schedule”.

Already in 1900 Heineken was exporting beer to various African countries (Ghana, Nigeria, Liberia and Sierra Leone). The first brewery in DRC was established in 1923. For many years the business expanded across the continent and in 2011 the acquisition of Harar and Bedele Breweries Ethiopia was made. In 2012 the construction of a new greenfield brewery was announced, which will be operational in 2014.

The Ethiopian beer market is growing. The market practically doubled over the last 5 years and the per capita consumption is still relatively low compared to other East African markets. The main drivers for growth are a growing population, urbanisation and rising incomes. Heineken Ethiopia’s key brands are Bedele Special, Bedele Regular, Harar, Hakim Stout and Sofi Malt.

Source: the