Dive Brief:
- SABMiller, the world's second-largest brewer, aims to tap the African beer market with lower prices and locally targeted brews. Africa could be the fastest-growing beer market by 2017, according to Canadean research reported by FoodBev.com.
- SABMiller's strategy includes keeping beer prices low at about $1 each, which may seem inexpensive to Western consumers but is actually nearly double what Africans tend to pay for homemade brews and spirits, a common choice for African consumers.
- Africa is an important region globally for the company as well, as it makes up about 27% of its total volume and nearly one-third of its profits. The company expects mid-single digit volume growth in the region in the medium term.
Dive Insight:
SABMiller may be one of the, if not the, biggest markets to capitalize on the escalating growth for beer in Africa. The market in general has seen positive results over the past few years, including lower inflation, higher GDP, and less foreign debt, as well as quickening population growth, all of which could offer opportunities to brewers, according to the Canadean research.
Heineken too is expanding its reach outside of its native country with plans for a new $470 million brewery in Mexico, its seventh there. As reported by The Wall Street Journal, Heineken’s Mexico CEO Marc Busain said at an event in Mexico City that the new plant will create 500 permanent jobs and accommodate growing demand in the Mexico and U.S. markets.