which is which 59% or 51%

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EABL arm sets up its third plant

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Courtesy | DAILY NATION Serengeti Breweries' launches its new plant in Moshi Tanzania. This is the third factory of the EABL subsidiary
By PAUL WAFULA pwafula@ke.nationmedia.com
Posted Wednesday, November 30 2011 at 21:03

A third brewing plant has been commissioned by a subsidiary of East African Breweries Limited in Tanzania, Serengeti Breweries. The idea is to increase sales in a market dominated by South Africa's SABMiller.
The new Sh5 billion ($55million) plant in Moshi will increase SBL's production by 55 per cent. The new plant can produce up to 40,000 bottles per hour. East African Breweries owns a 59 per cent stake in the brewer.
Bright prospects
EABL's group managing director Seni Adetu said: "We have made this investment with confidence in SBL's bright prospects. It is one of our key future growth drivers."
SBL chairman Mark Bomani called for the removal of non-tax barriers to enhance cross border trade.
"We appreciate that the reduction of common external tariffs and their removal in intra-regional trade makes Tanzania a favourable investment destination," he said.
However, the impact of these benefits is diluted by non-tariff barriers that contribute more to the cost of doing business than tariffs. This is through delays in clearance goods and compliance costs, Mr Bomani said.
Commissioning of the plant comes at a time when the regional market is becoming a battle zone between SABMiller and Diageo-led EABL, as both firms race to increase their footprint in East Africa having parted ways last week.
EABL, through a Sh19.5 billion loan from its majority shareholder Diageo Plc, bought back a 20 per cent stake in Kenya Breweries from its rival SABMiller, ending an eight-year deal that involved the rival firms marketing each other's products.
The deal also saw East African Breweries sell its stake in Tanzania Breweries Limited.
EABL arm sets up its third plant *- Business News*|nation.co.ke


TANZANIA: EABL subsidiary opens brewery in Moshi


Written by Super User Category: Business
Published on 01 December 2011 Hits: 3


East African Breweries Ltd (EABL) through its Tanzanian subsidiary, Serengeti Breweries, has moved to consolidate the regional beer market by commissioning a plant that will increase the latter's total production capacity by about 50 per cent.
The Sh4.9 billion facility can produce up to 40,000 bottles per hour, and will greatly shore up production of Serengeti Lager, Tusker and other brands of alcohol in the group's stable as it readies itself for an expected onslaught of its key market by SABMiller of South Africa.

The Moshi-based brewery is the third in Tanzania for Serengeti, which is 51 per cent-owned by EABL, and will boost its total production capacity by 55 per cent to over 1.4 million hectolitres per annum.

EABL's Group Managing Director, Seni Adetu, expressed confidence in the plant's potential to improve shareholder value.

Consolidate position

"Besides the capital injection in this plant, the investment in integration and system upgrade makes the Group well poised to consolidate its position in the Eastern Africa region. We have made this bold investment with confidence that SBL has bright prospects for the business, and will contribute to the Group as one of our key future growth drivers," he said.

With EABL and Diageo plc as its majority owners, SBL produces brands such as Premium Serengeti Lager, The Kick and Uhuru Lager. It also produces Tusker, Pilsner, Tusker Malt Lager, Guinness and Malta Guinness, and distributes spirits like Johnnie Walker, Baileys, Smirnoff, Gilbeys, and Captain Morgan.

SBL has other brewing sites in Dar-es-Salaam and Mwanza. The newly established $55 million brewing facility, which is a regional and continental masterpiece, can produce up to 40,000 bottles per hour.

Tanzania's Prime Minister, Mizengo Pinda welcomed the investment by SBL, noting the amount of confidence and significance it bears in unlocking trade potential, and serving both Northern Tanzania and Southern Kenya markets.

"This is a powerful demonstration of the huge opportunity that exists in East Africa, and a clear testimony to other private sector investors of what can be achieved when you combine strong will and confidence," said Pinda.


TANZANIA: EABL subsidiary opens brewery in Moshi
 
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