E-Malt.com News article: Ethiopia: Ethiopia’s leading brewer to construct one more beer plant

BGI Ethiopia, the nation’s largest beer producer, has received seven hectares of land in the industrial zone of Hawassa (some 300 km south of Addis Ababa) for its third beer factory in the country, Nazret.com reported on February, 16.

"If all goes as per plan the brewery will start production in the second semester of 2011," Mr. Jean Paul Blavier, the general manager of BGI Ethiopia, said.

According to estimates, Ethiopia’s annual beer consumption reaches 3.1 mln hl.

"There is a shortage of beer in the market today," says Mr. Blavier. "Our company has undertaken as many as nine expansion projects from 2005 to 2009 on our two breweries to meet the increasing demand."

Ethiopia's beer consumption that stands at 4 litres per capita, remains far below neighboring countries such as Kenya and some other African countries like Cameroon. In Kenya, it is 12 litres per capita, while in Cameroon the consumption level is 25 litres. As Ethiopian consumption level has shown a solid 24 percent annual growth in the last five years, catching up with Kenya or even Cameroon seems an easy reach considering the rate at which demand is growing.

The 2009 figures from BGI show that its two breweries, located in Addis Ababa and Kombolcha, together produced 1.6 million hectolitres of beer in a year, placing BGI number one in terms of market share, and meeting over 50% of the total consumption.

Today, BGI produces 140,000 to 145,000 hectolitres per month and in the next two months expects an increase of 18 thousand hectolitres in draft beer.

As Ethiopia recorded a double digit GDP growth in the last five years, a yearly 24 percent growth in beer consumption has been registered, further substantiating the forecast that it can soon catch up with Kenya.

There are five breweries in Ethiopia: BGI Ethiopia, Dashen, Harar, Meta Abo and Bedele.

Three other beer factories, Habesha Brewery in Debre Berhan, Amhara Region; Raya Brewery in Tigray region; and Kangaroo Beer in Mojo, Oromia region are under construction.

BGI entered the beer industry in Ethiopia in October 1998 when it bought St George Brewery for 10 million dollars through foreign direct investment.

Soon after BGI opened a plant in Kombolcha, Wollo in Amhara Regional State at a cost of 25 million dollars.

The Kombolcha plant rests on 47,270sqm and produces 45,000 hectolitres per month.
BGI offers three bottled brands, St George, Castel and Bati.


17 February, 2010