Bottoms Up! Beer Business Booming in Africa
Lately Africa has been attracting beer companies from around the world, as they look to start new ventures. Breweries interests have already begun in Johannesburg, South Africa, and Juba, Sudan. At the end of 2008, Africa produced 5% of the world’s beer supply, a number which has continued to grow since then. Although beer production has been popular in Africa since the 1990’s, companies have begun to increase their investments in the continent since African locals have struggled to be able to mass produce the product in the past.
One beer company, SAB Miller, wants to cut the price of beer in half for local citizens. Beer is relatively unaffordable to many Africans, so this is an attractive business deal that has made the company one of the continent’s biggest players. Diego, who produces Guinness, recently opened a brewery in Johannesburg which will produce Amstel, Heineken, and Windhoek Lager. One company who has not tapped into Africa’s thirst for beer is Anheuser- Busch InBev. This is surprising because of the company’s successful operations in both Latin America and its recent sponsorship of the World Cup in South Africa. While some companies choose to forgo business opportunities in Africa, others plan to increase revenue while boosting the African economy with new jobs and business ventures.
Africa has made strides to improve their economy and political stability. This has decreased poverty rates, and has appealed to foreign investors looking to do business in Africa. Citizens have more money to buy commodities such as beer, and beer giants are looking to quench their thirst as well as the rest of the world!