AB InBev has announced it will start the construction of a new brewery in Mozambique in the second-half of 2019, putting it in direct competition with rival Heineken N.V. which announced in December it will build a $100 million brewery in the Southern African country.
The Belgian-based brewer said that the new facility will produce about 2-million hectoliters of beer a year, but declined to disclose the size of the investment. However, it noted that the land acquired for the project would be big enough for further expansion in the future.
The company said that it already produces 2M and Laurentina lager brands in the country at another facility it owns.
AB InBev had announced in March that it will construct a new brewery in Dodoma, the administrative capital of Tanzania, with production slated to start in the second-half of 2020. The construction of a new brewery in Tanzania will put it head-to-head with Diageo controlled East African Breweries Limited (EABL), the regions market leader.
The maker of Budweiser and Stella Artois paid over US$100 billion to acquire rival SABMiller in 2016, giving it a substantial presence on the African continent. AB InBev said Africa was a significant factor in its decision to buy SABMiller.
The company now has presence in 15 African countries, mostly in East and Southern Africa, but also in Ghana and Nigeria in West Africa.
The new brewery in Mozambique will help AB InBev meet market demand in a country that saw 20% growth in the first-half of 2018, said Ricardo Tadeu, AB InBev’s Zone President for Africa, to journalists in Johannesburg, South Africa.
“It’s a reflection of how much we have been adding on the continent, constantly aiming for growth and putting the money where our mouth is,” he said.
The company said that its new Nigerian brewery which will open later this month will see the firm become the second largest producer of beer in the country, behind Heineken controlled Nigerian Breweries, but ahead of Diageo’s Guinness Nigeria.
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