South Africa: Heineken’s R6bn brewery heads to Pietermaritzburg

The Dolphin Coast on the north coast of KwaZulu-Natal will be dealt a heavy blow as Heineken Beverages, the world’s second-largest beer producer, looks elsewhere in the province to construct its brewery worth more than R6-billion, Sunday World reported on August 19.

Initially, indications were that the multinational corporation had agreed that its new brewery would be located next to the Dube Trade Port, an economic zone, a stone’s throw away from the King Shaka International Airport.

But insiders said the company had changed its heart on the location because it wanted a site where the project would quickly get off the ground.

“What would have hindered the company from establishing itself near the airport is mainly the rigorous application process that comes with setting up a plant. Remember, this should be a five-year project. The sites which have been identified meet all the necessary requirements such as water use licence and environmental impact assessment” said the insider not authorised to speak to the media.

Sunday World also understands that Cato Ridge, near Pietermaritzburg, is now the preferred destination for the brewery. The area is part of eThekwini metro’s N3 corridor development poised for massive catalyst projects over the next few years.

Sanele Shabalala, Heineken Beverages stakeholder relations manager, confirmed to Sunday World, saying the winning site will be announced in September when the Heineken Beverages executives meet with a consultancy firm tasked with conducting the site evaluation.

“Engineering and integrated design consultancy AECOM was appointed to spearhead the process. Five sites were identified. An official announcement on the chosen site will be announced in September.”

The estimated capital expenditure for the first phase of the brewery is estimated to be in the region of R6-billion. The multinational company with its roots in Amsterdam Netherlands first made the announcement several years back. It later affirmed its commitment during the 2023 South Africa Investment Conference, saying it wanted to expand its footprint in KwaZulu-Natal.

Heineken Beverages was formed in 2023 following the merger of Heineken South Africa, Distell and Namibia Breweries Limited. The company under its portfolio produces brands such as its global flagship Heineken, Savanna, Windhoek Beer, Tafel, Soweto Gold, Miller Genuine Draft, Strongbow and Nederburg, among others. The company also operates more than 165 breweries in 70 countries globally.

Siboniso Duma, the leader of government business in KwaZulu-Natal explained while the investment heralded a new dawn in boosting the economy and driving job prospects, the government will ensure that corporate social responsibility is not relegated to the peripheries.

“This is a huge investment and a game changer, which is most welcome. It will certainly change the face of the provincial economy to greater heights. It also augurs well for our ambition to make KZN a top investment destination,” said Duma’s spokesman Ndabezinhle Sibiya.

He further pointed out that the view of the department was that such key investments should also put corporate social investment as a top priority.

“The MEC believes that Heineken Beverages has to play that role of uplifting citizens and communities,” said Sibiya.

19 August, 2024