Ethiopia: Ethiopia’s leading brewer BGI embarks on massive expansion

BGI-Ethiopia, the leading brewery in Ethiopia, has embarked on massive expansion launching its VISION 2028, which aims to transform the company and secure its market leadership, New Business Ethiopia reported on December 20.

The company is set to invest heavily in its operations, production network, and distribution model. This investment plan involves increasing production capacity and relocating the historic Addis Ababa plant to its two breweries in Sebeta and Maichew.

“The investment is one of the major projects we are running to make our company operationally more competitive and continue to provide the best products to our consumers,” said Herve Milhade at the press conference given on December 20 at Sheraton Addis Hotel.

BGI-Ethiopia’s strategic transformation came following the continued environmental changes in the Ethiopian market, the entire industry competitiveness, and the willingness to speed the company’s growth and improve its organizational engagement and mindset.

The transformation is believed to bring a full-fledged change to the company’s operations and the way it does business. “Our vision is to double our production capacity in the coming years and bring our volume close to 10 million hl annually,” said Milhade.

“To reach this new ambition we will invest in our people, our products, our operations, our consumers, and the community we live in,” added the CEO. One of the major ongoing initiatives is to enhance the production capacity by investing in expansion projects.

“Due to its location in the middle of Addis, water supply constraints, and logistical challenges, the plant will be relocated, allowing us to increase the production capacity of other sites.”

BGI management and Castel Group decided to move the historical factory to the recently acquired Meta plant in Sebeta City and the Raya beer factory in Maichew town. The head office will remain in Addis Ababa.

“BGI-Ethiopia is also revamping its organizational structure and works to become the employer of choice,” the CEO told journalists.

BGI-Ethiopia currently has 3,500 permanent employees and 2,000 casual employees across its seven plants in Ethiopia. BGI-Ethiopia remains the leading platinum taxpayer in its industry paying over 7.4 billion Birr annually in taxes.

BGI-Ethiopia’s goal is to achieve operational excellence by identifying the essential capabilities and processes in each function.

“We aim to minimize role overlap and duplication to the minimum tolerable level. We will optimize staffing levels and models by reducing redundancy and improving working methods. We are committed to providing our employees with fulfilling jobs and compensation,” Milhade said.

Accordingly, the company gave an early retirement opportunity to its long-serving employees with the age of above 55 years by compensating them with up to 48 months of salary in addition to the legally set compensations.

Beyond the investment and human capital optimization, BGI-Ethiopia is also embarking on modernizing its distribution. The project aims at bringing efficient operation to our sales forces and agent’s network.

“We believe in the potential of Ethiopia,” said Milhade. “As Ethiopia continues to grow and change, we shall adhere to the demand of the market and change how we operate.” BGI-Ethiopia will do business in the right and responsible way to bring a shared mutual benefit to its consumers, employees, sales agents, and all stakeholders.

“Castel Group and its subsidiary BGI-Ethiopia have been serving the Ethiopian market with exceptional brands and products for over 25 years. Our commitment to developing the market has led to job creation, economic growth, and community impact in our plant’s surrounding areas.

“We are the largest private taxpayer in the country. We have achieved growth through multiple acquisitions, including the Meta factory (Sebeta), formerly under Diageo. Our presence in Ethiopia also includes our plants in Maichew (Raya), Kombolcha, Hawasa, Zebidar, and Zeway Castel Winery.”

BGI-Ethiopia produces beer products such as St. George Beer, Castel Beer, Meta Beer, Draught (draft) beer, and wine brands such as Acacia, and Rift Valley Wines. It has 3,500 permanent employees and is well known for its community support program for decades.

20 December, 2023