Global brewing group SABMiller announced on Monday, 11 April 2011, that its subsidiary company, Southern Sudan Beverages (SSBL), was to invest an additional US$15 million in its operations in Southern Sudan to increase production capacity and build on the strong performance of its local brand portfolio.
SSBL's state of the art brewery in Juba is operating at full capacity. By November, today's investment will have increased brewing capacity to a total of 500 000 hectolitres.
The investment has come in response to very positive consumer acceptance of SSBL's brands in its first two years of operation and would enable the company to service the entire Southern Sudanese market with a balanced and affordable portfolio of brands, SABMiller noted.
Popularity boosts production
The popularity of the newly launched White Bull brand and the locally brewed and bottled Nile Special brand has driven the increase in production capability.
However, improved capacity will also give the company the flexibility to introduce new brands to the market.
Ian Alsworth-Elvey, the managing director of SSBL, said: "Our investment in Southern Sudan continues to bear fruit due to the country's improving economic outlook and a continued positive consumer response to our brand portfolio.
"Increasing our brewing capacity takes the business to the next level, supporting growth in our key mainstream segments and helping us to build market share.
"In line with our global priorities, we are continuing to build the business through the value chain, working with local farmers to improve techniques and increase yield and supporting employment in the local community.
"Today's announcement reinforces our commitment to this exciting and growing market."
Community benefits
SSBL commissioned its brewery in Southern Sudan in 2009 and invested $37 million to build the facility in Juba.
To date, its operations in the region have created employment for 200 Sudanese.
Its pioneering land lease agreement ensures that the local community receives royalties from the development and benefits from the business's continued success.
SSBL, through SABMiller, is one of the largest private sector contributors to the Southern Sudanese economy, paying excise tax at both national and state level.
In 2010, SABMiller won nearly $1 million funding from the Africa Enterprise Challenge Fund (AECF) to introduce an innovative local sourcing model for cassava, which will provide the ingredients from which beer will be brewed.
SABMiller is partnering with leading nongovernmental organistion, FARM-Africa, to implement the initiative, which will bring direct and significant long-term market opportunities for about 2000 smallholder farmers with dependants, as well as other employment effects ensuring about 15 600 people could benefit in three years.
The Juba brewery will continue to provide increased carbonated soft drink capacity of 320 000 hectolitres, from initial capacity of 60 000 hectolitres, in response to the initial popularity of SSBL's Club Minerals Sparkling Soft Drinks range and Source Pure Drinking Water.