International Breweries shows mettle as competition thickens
International Breweries (IBPlc) is showing that it is capable of being a market leader in the Nigerian brewery industry in the near future.
Last week, the brewer commissioned its $250million Gateway plant at Bara village along Abeokuta-Sagamu interchange.
This is the fourth brewery plant owned by the firm, with existing three breweries in Onitsha, Ilesha and Port Harcourt.
That is not all. The plant is seen as the largest in the West African sub-region.
With this plant, the brewer is positioning itself for effective competition in an industry that also has the Nigerian Breweries and Guinness as key players.
History favours IBPlc. Founded in 1971 by Lawrence Omole, it was listed on the floor of the Nigerian Stock Exchange in April, 1995. On 1 June, 2012, SABMiller took over the firm following a strategic alliance with the Castel Group. SABMiller acquired a controlling interest in Pabod Breweries Limited in Port Harcourt and built a green field brewery – Intafact Beverages Limited in Onitsha. In September 2016, AB InBev combined with SABMiller worldwide, thereby effectively owning controlling interests in Intafact, Pabod and the then IBPlc.
In November 2017, Intafact and Pabod Breweries combined with IBPlc to form International Breweries. Today, it is still the subsidiary of AB InBev.
IBPlc has two brands that have been widely accepted by Nigerian consumers. Trophy Lager and Hero Lager are currently seen as economic brands, having also become engines of IBPlc’s business.
The brewer offers consumers further choice with Castle Lite lager and Eagle Lager as well as Eagle Stout brands. Just before the World Cup, the firm unveiled Budweiser, launching it with its sponsorship of the FIFA World Cup tournament in Russia. Apart from beer, the company also produces malt drinks, with Grand Malt and Betamalt as key brands.
“With the coming on stream of this brewery, 600 direct jobs and well over 2,000 indirect jobs will be created along our value chain,” Annabelle Degroot, managing director, said during the launch.
“Our combined contribution to the Nigerian economy through the already existing breweries is well above N8 billion in excise, N7billion in VAT and in N2.5billion in other taxes annually. As we grow and prosper, so will our contribution to the economy,” Degroot said.
The plant will, indubitably, have multiplier effects on the economy, adding jobs and growing other affiliate industries.
“Yearly, we buy over 30,000 tons of sorghum and maize and other raw materials locally. This will be significantly increased with the coming on stream of this new brewery,” she said.
Degroot said the firm had also positively impacted the growth of several other industries, pointing out that manufacturers of cans, crown corks, bottles and labels had benefitted from the brewer’s steady and increasing patronage, enabling them to generate further employment.
She disclosed that over N300m had been expended on empowering young entrepreneurs in start-up businesses through the company’s Kick Start programme, with 110 youths receiving grants.
“We have spent over N80million on training small retailers through our- Retailer development programme,” she added.
Nnaemeka Alfred Ugochukwu Achebe, chairman of the company and traditional ruler of Onitsha in Anambra State, said the manufacturing sector of our economy was a key enabler of the creation and promotion of value chains and for employment.
“We rely on policies and the support of our government and state to support and bring about evident transformation in the manufacturing sector. I encourage our government to simplify taxation and licensing requirements, particularly at the state and local government levels, to enable manufacturing concerns to thrive,” Achebe said.
Carlos Brito, CEO of AB InBev, said to brew the highest quality beers, the company needed a sustainable environment and thriving communities.
“Sustainability is not just related to our business, it is our business. We are building a company to last for the next 100+ years, both globally and in Africa, with Nigeria being a big part of this growth. We are set on brewing beers that will continue to bring people together across generations and communities. Our global portfolio offers more than 500 brands and in Nigeria, we now have a beer that will suit most people’s tastes – from our core brands such as Trophy and Hero to our affordable brands like Eagle Lager and Eagle Stout.”
Muhammadu Buhari, Nigeria’s president, represented by Boss Mustapha, secretary to the government of the federation, said the new plant was an indication that Nigeria was ready for business.
Buhari said it also portrayed that investors had confidence in the economy.
ODINAKA ANUDU