Anheuser-Busch InBev NV, the world’s largest brewer said it will establish a mega plant in Nigeria.
This is part of its strategy to consolidate on its merger with SAB Miller.
Ab InBev will spending about USD400 million for the plant with the aim of taking on Heinekan BV., the largest brewer in West Africa with strong local brands.
The company’s African CEO, Ricardo Tadeu told Bloomberg that the company is “prioritizing what we need to do in Africa, rather than trying to find new things”.
AB InBev is also looking at giving international exposures to some of its successful local brands. Ricardo said the move is to show the world that African beer have something unique to show the world. Im return, the company plans to introduce Stella Artois and Budweiser, two of some of its largest and high performing beer brands.
The company will not find it easy to take on Heineken’s Nigerian Breweries and Guinness Nigeria, Diageo’s local unit in Nigeria that has been under-performing on revenue basis for more than two years.
Both companies are facing weakening demands in Nigeria given the current recession and Naira (NGN) devaluation which is hurting their bottom lines.
AB InBev has not really gotten a strong foothold in the Southern and Central part of Nigeria, a turf already under the control of Heineken and Guinness Nigeria. The construction of the new plant will be a move to increase its ambition in markets where its brands are rarely known or under-marketed.