E-Malt.com News article: East Africa: Diageo Africa gains 23% growth in sales and plans investments in hiring and training local graduates

Diageo Plc announced its African sales climbed at a “healthy double-digit” pace in the last six months on marketing investment and partnerships with local brewers, Bloomberg reported on September, 24.

According to Nick Blazquez, managing director of Diageo Africa, marketing spending was about 100 million pounds ($185 million) over the past year and will rise in the coming 12 months. A joint venture with Namibia Breweries Ltd. and similar tie-ups also hold promise for growth, he said.

The company reported that advertisements for Tusker beer helped its East African sales to gain 23% in the fiscal year that ended in June.

“The growth opportunities in Africa are fantastic,” Blazquez said. “The biggest restraint is human resources.”

Blazquez said Diageo wants to become less dependent on expatriate workers, whose number across the continent has halved in the last four years. The brewer plans investments that include a program to hire and train local graduates, the managing director informed.

Sales growth has slowed in recent months because of power shortages and inflationary pressures, Blazquez said.


26 September, 2008