leineken is one of the most popular
remium beer brands across Africa,
reasing demand has recently led to a
ber of new breweries and acquisitions
i South Africa, Ethiopia and Nigeria
As a result of increased political stability and economic
growth, Africa is one of the fastest growing beer markets
in the world. Tom de Man, Heineken's Regional President
Africa and Middle East, tells us: "Africa is very important to
Heineken. We are boosting our investments in the region
to meet demand from an increasing population and strong
GDP growth."
In 2010, the Africa region generated revenue of almost
€2 billion, 12.5% of Heineken's revenue and contributed
22.3% to total earnings (EBIT). Group beer volume in
the region was 25.6 million hectolitres while soft drinks
totalled 5.8 million hectolitres and other beverages
including cider, wine, spirits and water totalled two million.
Of the total beer volume, the Heineken brand accounted
for more than 10%.
While beer consumption per capita is still relatively low
compared to European or South American markets, a
number of African countries have clearly demonstrated
additional market potential, particularly Nigeria, South
Africa, the Democratic Republic of Congo, Republic of
Congo, Burundi, Rwanda and Ethiopia. In quarter one of
2011, for example, Heineken reported double digit volume
growth in Africa and the Middle East, with particularly
strong performances in Sub-Saharan Africa (+15%).
STRONG PERFORMANCE
"In Nigeria, the beer market grew by more than 10%.
Heineken's extensive portfolio of regional and local brands
is the driving force. In particular, the Heineken brand has
shown strong growth over recent years," explains Tom.
In January 2011, Heineken added five new breweries
to its Nigerian holdings. This will help relieve capacity
constraints on existing plants, and allows Heineken to
expand within the second largest beer market on the
continent.Growth in South Africa, the continent's largest
beer market, was up by 8.6%.
In the last few years alone, Heineken has increased its
presence in Africa in three major ways. In March 2010,
the state-of-the-art Sedibeng Brewery opened south of
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