Wednesday, October 17, 2018
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AB InBev to build brewery in Mozambique

AB InBev

AB InBev, the world’s biggest brewer, will start building a 2 million hectoliter a year brewery in Mozambique in the second half of next year, the company’s Africa head said on Tuesday.

“We’re not disclosing the value of the investment at this point,” said Ricardo Tadeu, AB InBev Africa zone president, at a media briefing in Johannesburg.

The company paid roughly $100 billion to buy rival SABMiller in 2016, giving it a substantial presence on the continent of more than a billion people.

The Mozambique investment will look to fend off competition from rival Heineken, which is the middle of building $100 million brewery in the southern African country.

FILE PHOTO: A woman serves a one litre bottle of AB Inbev’s Carling Balck Label beer at a bar in Cape Town, South Africa, May 11, 2018. REUTERS/Mike Hutchings/File Photo

AB InBev already brews the 2M and Laurentina brands in Mozambique in another brewery.

Substantial gas reserves discovered off Mozambique’s Indian Ocean coastline more than a decade ago were set to jumpstart its economy but progress in setting up the infrastructure to tap them has been glacial, slowing the pace of investment in many sectors.

AB InBev is trying to protect and expand its mid-tier brands with the help of discounting and promotions as they will be its workhorses during the time it takes its premium international lagers Budweiser, Stella Artois and Corona to gain market share.

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