SBL beats Covid-19 odds to complete 30bn/- factory expansion

14Jul 2020
The Guardian Reporter
Dar es Salaam
The Guardian
SBL beats Covid-19 odds to complete 30bn/- factory expansion

Despite challenges being posed by the novel coronavirus outbreak, Serengeti Breweries Limited has completed expansion of Dar es Salaam factory with a 10 million pounds (about 30bn/-) investment.

Engineers at SBL factory in Dar es Salaam pondering how to offload part of the brewing plant.

SBL’s Managing Director, Mark Ocitti said the move by the brewer has been backed by customers’ overwhelming demand for its beer brands with continuous increase in beer volumes hence necessitating the expansion its three breweries located in Kilimanjaro (Moshi) and Dar es Salaam (Temeke).

“We promised our customers that if volumes continued to grow, we would invest in additional production capacity within a couple of years and that’s what we are currently doing,” Ocitti said last week.

Giving an update of the massive expansion investment, Ocitti said constriction work at Moshi brewery is underway at a cost of 4.5 million pounds (13.5bn/-). The huge expansion is also in line with the government’s industrialization agenda in addition to SBL’s solid business standing and its confidence in the country’s current and future economic prospects.

The growth in business has also resulted into increased tax payments to the government with a total 132bn/- last year indicating 10 percent increase from 121bn/- paid in 2018. Ocitti added that the growth has also led to an increase in the direct and indirect employment with over 800 permanent employees.

Also benefiting from the brewer’s expansion drive are local farmers who cultivate barley, sorghum and maize which is used as raw materials for beer production. As of last year, SBL had contracted over 400 farmers across the country who sold the company around 17,000 metric tons of cereals accounting for about 70 percent of its total raw material needs for a year.

“Our ambition is to source up to 85 percent of raw materials required for beer production locally by 2022 hence providing more farmers with a reliable market to sell their commodities,” Ocitti noted.

Incorporated in 1988 as Associated Breweries, SBL is the second largest beer brewer in the domestic market with its beer brands accounting for over 25 percent share by volume. SBL has three operating plants in Dar es Salaam, Mwanza and Moshi.

Since the creation of SBL in 2002, the business has grown its portfolio of brands year on year. The majority stake acquisition by EABL/Diageo in 2010 has seen increased investment in international quality standards leading to greater job opportunities for the people of Tanzania.

SBL Brands include: Serengeti Premium Lager, Serengeti Lite, Pilsner Lager, Pilsner King, Tusker Lager, Tusker Lite, Kibo Gold, Guinness stout and Senator. The company is also home to world’s renowned spirits such as Johnnie Walker Whisky, Smirnoff Vodka, Gordon’s Gin, Captain Morgan Rum and Baileys Irish Cream.

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