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Food & Beverage

Heineken Finalizes Site of New S.African Brewery

March 26, 2008
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Reuters is reporting that Heineken, the world''s fourth-largest brewer, has finalized the siting of its new South African brewery south of Johannesburg, which will create 225 jobs and take on dominant domestic brewer SABMiller.

The Amsterdam-based brewer said recently it would build the brewery with its British partner Diageo in the Sedibeng area between Vereeniging and Alberton. The brewery site, on the R59 highway south of Johannesburg, covers about 80 hectares.

Earlier this month, Heineken and Diageo announced their intention to build a brewery in a 75:25 percent joint venture and said they had two sites around Johannesburg under consideration.

The new brewery will have an annual capacity of 3 million hectolitres and brew a range of the two owners'' brands, including Heineken, Amstel and Guinness beers. Work is under way, and construction is expected to be complete by the end of 2009.

The second site considered as a potential location for the brewery, in Ekurhuleni near the R21 highway, to the northeast of Johannesburg, is still under consideration for other operations, Heineken said in a statement.

Heineken''s chance to expand in South Africa came in March 2007 when it won back the right to brew and distribute its Amstel brand in South Africa, and said it planned to build the only non-SABMiller owned brewery in South Africa to compete with SABMiller which holds a beer market share of 93-94 percent.
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