Mozambique: Heineken begins work on $100 mln brewery in Mozambique
Heineken began work on building a $100 million brewery in Mozambique on December 4, a high stakes gamble on an increase in beer consumption in one of the worlds poorest countries, Reuters Africa reported on the same day.
The factory, scheduled to produce its first batch of beers in the first half 2019, would give the worlds second-largest brewer a substantial presence in the southern African country, where annual beer consumption averages 11 litres per person.
The worlds major brewers have turned to emerging markets for growth because consumer spending in Europe is sluggish and the United States offers only limited expansion opportunities.
Mozambiques economic growth prospects, along with its youthful population, were behind the decision to set up a plant there, said Boudewijn Haarsma, Heinekens east and west Africa head. Mozambique has a sizeable, young population. It has good, promising economic growth prospects, Haarsma said in an interview with Reuters.
The factory will have a production capacity of 0.8 million hectolitres and is expected to create 200 jobs directly.
Mozambique discovered substantial offshore gas reserves seven ago. The find gives Mozambique an opportunity to transform itself from one of the worlds poorest countries into a middle-income state and a major global liquefied natural gas exporter.
Heineken, which also brews Amstel and Sagres, opened a marketing office in Mozambique last year, importing products to compete in a market where AB InBevs 2M is entrenched.
AB InBev last year took over SABMiller, gaining a brewery in Mozambique among a host of assets worldwide.
Heineken built a brewery in neighbouring South Africa less than a decade ago after ending a deal with SABMiller for brewing Amstel beer.
E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .