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SAB Has Completed Promised R5.8bn Plant Upgrades – REPORT

South African Breweries (SAB) acknowledged on Thursday that its R5.8 billion investment promise has been used to boost capacity at two of its operations, according to the Department of Trade, Industry, and Competition (dtic).

According to the dtic, the investment was for civil works and new equipment to enable for enhanced local production for new product improvements.

SAB made the announcement at the South African Investment Conference 2023. SAB identified two plants for capacity upgrades: Prospecton Brewery in Durban and Ibhayi Brewery in Gqeberha, Eastern Cape.

President Cyril Ramaphosa announced the South African Investment Conference in 2018 to promote economic activity, with an objective of mobilizing around R2 trillion in new investments over a five-year period beginning next year.

“We are dedicated to sustainable investments and economic growth,” SAB’s CEORichard Rivett-Carnac said in the statement.

“Our investments over time have contributed billions of rand to the [economy], which, alongside the investment commitments pledged at the 2023 South African Investment Conference 2023, have provided a significant boost to an economy sorely in need of stimulus.

“In terms of job creation, the investment into the Prospecton Brewery has created approximately 25 000 additional jobs throughout the value chain, whilst the Ibhayi Brewery investment has created a further 14 000 jobs throughout the beer value chain across South Africa,” he said.

Rivett-Carnac went on to say that the anticipated 39 000 jobs created by these investments were spread across a number of industries, including agriculture, logistics, manufacturing, hospitality, construction, and innovation.

SAB employs around 5 700 people and works with nearly 3 739 suppliers, supporting approximately 250 000 jobs in the beer value chain. The company sources its ingredients from local farms, guaranteeing that 94% of its beer is produced in South Africa.

The business has recently reported strong local demand, particularly for Carling Black Label, or Zamalek as it is lovingly called, which appears to be stealing market share from rival Heineken.

AB InBev’s local unit recently said that it managed to raise beer volumes in the high single digits in the third quarter to end-September. It also managed to increase revenue into the mid-teens after pricing increases. This occurred in the context of mostly flat worldwide beer volumes.

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