ABInbev’s $250 million brewery in Nigeria to open in June

ABInbev’s $250 million brewery in Nigeria to open in June

The world’s largest brewer, Anheuser-Busch InBev said it is poised to open its largest brewery in Africa’s largest economy.

The brewery is located in Sagamu, Ogun state, southwest Nigeria is expected to be open for full-scale operation in the middle of the year.

“For the long term, in five to 10 years, Africa will be an important growth driver for the global company,” Ricardo Tadeu told Reuters News.

He declined to give the plant’s production capacity, but said the company was upbeat about growth prospects in Africa’s most populous nation and elsewhere across the continent.

“We have a clear strategy to keep a good level of growth in Africa based on developing our brands in different segments of the market,” Tadeu said.

He said growth in African countries, excluding South Africa, was a“healthy growth rate in the mid-teens”.

The Belgium-based brewer said on Thursday it expected revenue and core profit (EBITDA) to grow strongly again in 2018, with revenue per hectolitre rising by more than inflation and costs by less.

The brewer said on it had achieved savings of $381 million from its near $100 billion purchase of rival SABMiller, which boosted in presence across Africa, which includes some of the world’s fastest-growing economies.

Heineken’s Nigerian Breweries Plc and Diageo’s Guinness Nigeria Plc are the two largest beer makers in the market. Both companies did come under pressure after a recession led to a slump in consumer prices due to inflation.

ABInbev has acquired Pabod Breweries and International Breweries to gain its foothold in the Nigerian market.