AB InBev Namibia plans to grow its local brands by increasing its production capacity by constructing two additional tanks and has further already secured land for the future expansion of its brewery, Country Manager Kevin Louw says.
Louw was speaking subsequent to the company launching the local production of Lion Lager.
The launch of Lion Lager marks a significant milestone for AB InBev Namibia’s Welwitschia Brewery, celebrating its 10-year anniversary. The brewery, whose capacity has been increased with two additional tanks in 2019, started with an initial focus on three flagship brands: Castle Lager, Castle Lite, and Carling Black Label, which now produce five brands (this includes Lion Lager), diversifying ABI Namibia’s beer portfolio to cater to a wider audience and different market segments.
AB InBev Namibia has now increased its production volumes by 50 000 hl since 2019 and aims to increase it by another 50 000 hl in this current financial year.
AB InBev Namibia invested over N$12 million in the local production of Lion Lager and will invest over N$60 million in its production for the next 5 years. With this local production, AB InBev Namibia is expecting more growth for the brand and its beer portfolio and expects to enhance its market position and consumer engagement.
The launch of the Local Production of Lion is a significant step in AB InBev Namibia’s long-term localisation strategy aimed at boosting local economies and enriching our diverse portfolio of brands.
Speaking at the launch, Minister of Industrialisation and Trade, Lucia Iipumbu, said that the Lion Lager brand is not foreign to the Namibian market as it was a renowned brand in this country already during the early years of independence.
She welcomed local production, stating, “AB InBev’s decision to increase its diversified local footprint aligns with the vision of the Ministry of Industrialisation and Trade to expand the country’s industrial base through the enhancement of local production capacity and reduce our dependency on imports.” She continued to applaud AB InBev Namibia for its investment in Namibia, stating further that the local production of this beer brand signifies the confidence that strategic investors such as AB InBev have in the stability of the Namibian economy, the quality of its workforce, and the opportunities presented by Namibia’s business environment.
The beer value chain continues to accelerate economic growth in Namibia, contributing N$2.94 billion to the GDP. The industry created 9 000 jobs across the value chain, and N$1.26 billion was collected in tax.
AB InBev Namibia’s operational footprint includes one brewery, three depots, and a corporate head office, employing 146 staff.
“For us, building an empowered nation means working with the people who call Namibia home, and this includes over 200 local suppliers across our supply chain, reenforcing our commitment to investing in the Namibian economy,” Louw says.
AB InBev Namibia further provided a progress update on its Water Stewardship initiative. Kgosi Mogotsi, Government & Stakeholder Relations Director, announced that both phases of the project have been commissioned, with an investment of over N$4 million. AB InBev and Okahandja Municipality are currently working to ensure the project delivers on its promises, enhancing water access and security in Okahandja, less privileged communities.
Beyond AB InBev Namibia’s localisation strategy and suitability initiatives, the company announced the start of its flagship responsible consumption platform. Mogotsi says, “While the project is still in its infancy, we have begun with the Retailer Academy aimed at equipping bar owners with the necessary skills to run their businesses and responsible trading practices. The new platform will build on these efforts to further establish a culture of responsibility and safety in alcohol consumption.”
Iipumba applauded AB InBev Namibia for this initiative and further encouraged AB InBev Namibia to educate the public about responsible consumption of alcohol to deter the potential harmful effects related to excessive drinking.