Nigeria: AB InBev close to opening $250 mln brewery in Nigeria

AB InBev is expecting its new $250 million brewery in Nigeria to start production in the middle of this year, according to its head of Africa operations Ricardo Tadeu.

Although the facility’s production capacity is yet to be revealed, the business has a strategy to continue its growth in Africa with a development of its major brands such as Budweiser and Becks, Plastics in Packaging reported on May 4.

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

The $250 mln investment includes the merger of its three subsidiaries in Nigeria – International Breweries, Pabod Breweries and Intafact Breweries – with the resulting business to be known as International Breweries.

Before the AB InBev deal, SABMiller was the third largest brewer in Nigeria after Heineken’s Nigerian Breweries and Diageo’s Guinness Nigeria.

Nigeria is the most populated country in Africa with 43 per cent under the age of 14. Financial analysts predict that the GDP will grow by just over 2 per cent 2018, with this largely driven by the oil sector.

Companies are continuing to invest in the growing market, with Nestlé announcing a new beverage production plant in February this year.

03 May, 2018