AB InBev to open $100m brewery in Tanzania

21-Mar-2018 - Last updated on 21-Mar-2018 at 14:26 GMT

The new brewery in Tanzania will produce regional beer brands such as Castle Lager, Eagle Lager, and Kilimanjaro Lager, AB InBev said.

AB InBev will invest $100m to build a new brewery in Tanzania where the world’s largest brewer grew beer volumes by double digits in Q417 and FY17.

AB InBev operates locally in the East African country as Tanzania Breweries Limited (originally acquired by SABMiller in 1993) where it has a more than 70% market share with four breweries producing local beer brands such as Castle Lager, Castle Lite, Kilimanjaro Lager, and Eagle Lager.

Construction of the Tanzania brewery is slated for next year with production projected for 2020, according to AB InBev.

Africa market potential

AB InBev has been increasing its focus on the African consumer beer market.

“Our own beer volumes grew double digit in the majority of the countries in which we operate, including Nigeria, Tanzania, Uganda and Zambia, as we continue to expand our offerings to consumers through both affordability and premiumization strategies,” AB InBev said in its Q417 and FY17 earnings report.

In addition to Tanzania, the mega brewer has made inroads into Nigeria, helped by SABMiller’s nearly 10-year presence in the country as the third largest brewer (before the AB InBev $106bn takeover), which included ownership of Pabod Breweries and Intafact Beverages (now both part of AB InBev-owned International Breweries).

AB InBev recently completed construction of a brewery in Sagamu, Nigeria, which cost more than $250m and is expected to start producing Hero and Trophy regional brands in mid-2018.

The company will also introduce its Budweiser and Beck’s beer brands in Nigeria this year as the official sponsor of the FIFA World Cup.