Heineken officially opens Addis Ababa brewery
In a ceremony attended by 300 guests, including the Ethiopian Prime Minister Hailemariam Desalegn, Mrs Charlene de Carvalho-Heineken and hosted by Jean-François van Boxmeer, CEO of Heineken, the EUR 110 million brewery was unveiled on 15 January 2015.
With a total capacity of 1.5 million hl, the Kilinto brewery on the outskirts of Addis Ababa is already producing the recently launched Walia beer, together with Bedele and Harar beer brands. It is planned that the site will also brew other brands including the flagship Heineken beer.
Employing around 280 people, the new plant complements the Bedele and Harar breweries, which were acquired from the Ethiopian government in 2011 for USD 163 million. The new brewery is part of a total EUR 310 million investment in the country by Heineken since 2011, taking its brewing capacity to an estimated 2.4 million hl.
In a press release, Heineken stressed its long history with Africa. Already in 1900 the Dutch brewer was exporting beer to various African countries. In 1923 it established its first brewery in the Congo.
Africa represents a major part of Heineken’s overall business: it provides 14.5 percent of Heineken’s revenue and 14.1 percent of its beer volumes, the brewer said. Since 2007, Heineken, by its own admission, has invested over EUR 2.5 billion in the continent and provides about 1.1 million direct and indirect jobs.
According to Heineken, the Ethiopian beer market is growing rapidly. The market practically doubled over the past five years and per capita consumption is still relatively low (5 litres) compared to other East African markets. The main drivers for growth are a growing population, currently standing at 94 million people, urbanisation and rising incomes.
Competition is stiff in Ethiopia’s beer market. France’s Castel has been in Ethiopia longest and controls an estimated 50 percent of the market through its very popular St George lager beer brand. Diageo entered in 2012 when it bought the privatised Meta Abo brewery for USD 225 million. In October 2014 Diageo announced it would spend USD 100 million to double the brewery’s capacity.
