SABMiller opens second brewery in Uganda

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SABMiller opens second brewery in Uganda

Thu, 22 August 2013
SABMiller opens second brewery in Uganda

Drinks giant SABMiller on Thursday officially opened a second brewery in Uganda, doubling its potential brewing capacity to 3.6m hectolitres.

The company's Ugandan subsidia, Nile Breweries, decided to invest $90m in the new brewery after the first one starting approaching its maximum capacity despite a major $29m expansion in 2009.

Managing Director of SABMiller Africa, Mark Bowman, said: "The growth potential in Uganda, particularly Western Uganda, is significant and the new brewery in Mbarara will allow us to realise the opportunity.

"Building a second brewery in Uganda is part of our strategy to invest in new capacity across Africa so that we are in a strong position to capitalise on the continent's long-term beer market growth over the coming decades.

"Western Uganda is the fastest growing regional beer market within Uganda making Mbarara the ideal location for a new brewery. The town is a major transport hub for the region, and it also benefits from superior infrastructure, including a ready water supply from the River Rwizi, and a reliable source of power."

Capacity of the new brewery will start at 650,000 hectolitres, expandable to 1.8m hectolitres on the same site.

The group expects that clear beer volumes in the country to continue growing at a rate of 11%, as they have done for the past six years, driven by GDP growth, a rapidly growing population, and currently low per capita consumption.