Uganda: Nile Breweries to build a new $28m brewing line

Nile Breweries (NBL) is to invest $28m in the new brewing house and packaging line, The New Vision posted on July 2nd. “This investment will enable us double the capacity of the brewery from 90 million litres to 180 million litres. We are bringing in three tanks in addition to putting up one packaging line,” Nick Jenkinson, the managing director, said.

He was speaking during the family day for the NBL staff in Jinja. Jenkinson also disclosed that the company registered a 60% growth over the past three years. He said the company would also pursue further additions to its brand portfolio to keep with its track record as the innovative brewery in Uganda.

Last month the company launched the new 500ml returnable long neck bottle for Nile Special and Club Pilsner brands.

Jenkinson disclosed that NBL lobbied the Government for a reduction in excise duty on non-malt beer from 30% to 20% effective this month. Jenkinson said this had enabled NBL “to pass on significant price reduction on our Eagle Lager and Eagle Extra brands to consumer.

“It is anticipated that this measure will revive the subsistence beer category, which has been in decline following an excise duty increase in 2006, to the benefit of Ugandan farmers and the economy at large.”

04 July, 2008