Heineken To Spend R1 Billion at its South Africa Brewery

Heineken has announced plans to increase capacity at its South African brewery.

The world-famous beer maker will pump about R1 billion at its Sedibeng brewery, increasing its capacity by about 25%. This will be a joint venture with Namibia Breweries which operates the 9-year-old Sebideng plant.

This comes as Heineken increases its market share in the country. According to Gerrit van Loo, MD of Heineken South Africa, the beer holds an 18% market share, with lots of room to grow.

“We are hugely optimistic about South Africa based on our performance in the last three years,” said Van Loo. “South Africa is identified as a country that can play a role in our international growth strategy. Our brands, both in beer and cider, are enjoying a high level of acceptance by South African consumers.”

The Sedibeng plant is meant both for local consumption and for export.

Though Heineken does not provide figures for individual countries, its most recent financial results show that South Africa is one of its best performing markets. Its flagship, Heineken, reportedly grew by double digits, while its sister brand Amstel also did well.

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