UGANDA BREWERIES LTD
GIVING BACK TO LOCAL COMMUNITIES
P R O J ECT PA R T N E R
PROCURING LOCALLY AND SUSTAINABLY TO DRIVE CHANGE IN UGANDA Written by Catherine Sturman Produced by Justin Brand
A farmer in his sorghum garden in eastern Uganda donning a senator branded T-shirt. Senator is a sorghum based beer
Head of Procurement at Uganda Breweries, Joshua Muwema, on the company’s work to give back to local communities
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onsuming up to 10 litres of alcohol per person per annum, Uganda has become a country of significant growth for the adult beverage industry. Each year, up to a million Ugandans reach legal purchase age, fueling a market full of untapped potential for new and developing businesses. Focused on delivering highquality products, from international brands such as Guinness and Tusker to popular local products Bell Lager, Uganda Waragi, Senator, Ngule and much more, Uganda Breweries Limited (UBL) strives to tap into the tastes and demands of its consumers. The company seeks to become
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one of the best performing, respected and, more importantly, most trusted consumer goods company in Uganda. “Whilst spirits continue to grow, the informal beer sector represents 60% of alcohol consumption in Uganda. There’s a huge opportunity for us to recruit consumers into our product segments,” explains Joshua Muwema, Head of Procurement. Local raw materials agenda In spearheading the implementation of sustainable, domestic value creation across UBL’s supply chain, UBL has sought to transform its business through placing increased emphasis on procuring raw materials from local communities to improve
“WE’VE SEEN A LOT OF GROWTH ON THE SPIRITS SIDE OF THE BUSINESS AND ARE INVESTING WHERE WE SEE A FUTURE” - Joshua Muwema, Head of Procurement w w w. u g a n d a b re w e r i e s . c o m
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OFFERING BETTER SERVICES THAN EVER BEFORE
Savannah Commodities is an agricultural commodities trading company mainly dealing in coffee and grains. We are one of the most reliable suppliers of quality Ugandan coffees. We are currently expanding our processing, silo storage & value addition infrastructure to avail to the farmersĘź grain & pulse handling throughout the year. Savannah has chosen to go green and has installed high energy efďŹ cient agro processing, handling & storage complex driven by motors & drier systems. Vision: To provide Agro processing infrastructure, agro value addition & Soft commodities trading solutions company in East Africa. Mission: One Stop for value addition on agro-products where the agrocommodities are exported or traded to other manufacturing industries.
www.savannah.co.ug savannah@infocom.co.ug | Tel: +256 (41) 4252 541 | Fax: +256 (41) 4252 542 Plot 6/8 Nyondo Close, Industrial Area Bugolobi, P.O Box 6217 Kampala, Uganda
the lives of Ugandan citizens. Through UBL’s local raw materials sourcing agenda (LRM), the company has sought to nurture partnerships with local suppliers and farmers. UBL provides farmers with the necessary seeds to grow the grain for its processes and educates them on how to achieve the right quality and subsequently provide the market once the crop is harvested. This remains an area of immense pride for Muwema, and in 2015 the company reached a total of approximately 17,000 farmers under its LRM agenda, benefiting over 25,000 households countrywide. ‘Our collaboration with Kakira Sugar (part of The Madhvani Group), for example, has enhanced our ability to avail our consumers with affordable quality beverages resulting from a tax benefit from the government,’’ explains Muwema. UBL’s decision to also appoint Savannah Commodities as a single aggregator for sourcing its local raw materials is projected to bring immense benefits to both company and farmers. The farmers have a
UGANDA HAS BECOME A COUNTRY OF SIGNIFICANT GROWTH FOR THE ADULT BEVERAGE INDUSTRY
UBL PLANS TO INVEST IN ITS BEER PACKAGING AND STORAGE CAPACITY TO INCREASE PRODUCTION BY 50%
UBL’S WORK WITH SAVANNAH COMMODITIES AND LOCAL FARMERS HAS ENHANCED THE LIVELIHOODS OF LOCAL COMMUNITIES
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one stop centre where all produce is received, processed and stored hence guaranteeing quality. The agro processing facility sits beside a fertiliser blending plant that provides cheap affordable fertiliser to the farmers hence boosting productivity on their land. “With Savannah being our partner in extension delivery, we have seen more demo farms established while an opportunity arose out of this marriage for us to expand barley growing areas to the south western frontier of Kigezi region which adds to the communities that benefit from working with UBL,” comments Muwema. As the business thrives, its engagement with the communities doesn’t stop at commercial activity only, where UBL continually engages in impactful corporate social responsibility activities. Whilst many communities in Uganda lack access to clean water, UBL’s Water for Life Programme has worked to deliver essential access to clean water facilities, improved sanitation levels and provided a
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significant long-term impact. Additionally, UBL’s involvement in environment conservation has seen its staff undertake the E Green Initiative to contribute to the restoration of Uganda’s forest cover through tree planting. Most recently, UBL, in partnership with National Forestry Authority (NFA) and Wild Wide Fund (WWF), restored 109 hectares of forest cover to the Navugulu Forest Reserve, allowing for the forest to serve its purpose as a catchment for Lake Victoria thus contributing to less pollution upstream. Driving productivity Throughout its ambitious fiveyear plan, UBL has witnessed a significant improvement in the rollout of various Capex projects as its brewery continues to expand. “Productivity is an engine for growth for us because, for every penny that we save, we look at how much we can plough back into the business,” says Muwema. “We are currently installing a stateof-the-art bottling line at the distillery.
UBL E-green team @ Navugulu Forest where they restored 109 hectares of degenerated forest cover UBL board launching Ugx 800 million scholarship fund and Water projects for 2018 in northern Uganda farming communities.
DHL SUPPLY CHAIN INTERNATIONAL LTD What DHL offers :
• Outbound Warehousing - Beer and spirits • Inbound Warehousing • Warehouse management solution and inventory management Aila Aliongo Director: Business Development E-mail: Aila.Aliongo@dhl.com
www.dhl.com/logistics
• In plant logistics Line feeding and evacuation • Inventory Management • VAS (Sortation and Conversion of new glass bottles from cartons to cases) • Distribution of beer and Spirits to Customer
distributors countrywide • Reverse Logistics ( Empty glass and returns) • Site Health and Safety Management • A multi-skilled and flexible workforce to accommodate peaks of activity
Zachary Mukwaya - Head of Business, Uganda E-mail:Zachary.Mukwaya@dhl.com +256 772 671 592
UBL Management Team i.e MD, SCD & HOP visiting the Savannah processing & storage facility in Mukono
This line is fully automated and will be deployed along with associated utilities and civil works which include a brand-new warehouse and other amenities. This will be launched in June this year and will help us roll out products that will meet ever growing customer demands. “We’ve seen a lot of growth on the spirits side of the business and are now investing where we see a future,” he adds. “On the beer side of the business,
we have currently maxed out the production capacity of 1.2mn h/ litres. The limiting factor being the packaging line and storage. “Our plan is to invest in packaging and storage capacity to increase production by 50%. This is a work in progress and is planned for the next financial year.” To further support its ongoing expansion, UBL has developed strategic partnerships with logistics suppliers to drive efficiencies while
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bringing down cost. “Efficiencies in transport, inventory management and warehousing are key in maintaining positive COGS which in turn drives the product pricing to an affordable price point for the consumer,” says Muwema. Partnering with DHL East Africa has seen UBL outsource its distribution, inventory management and warehousing operations, thus unlocking increased value and ensuring the products are at the right place, the right time and at the right price. “DHL shares in our vision and in 2018 has embarked on an expansion program at its Luzira warehouse facilities in order to meet UBL’s growing warehouse capacity demands. Additionally, DHL is aggressively looking at their existing fleet with a plan to refresh and expand the existing fleet and forklifts as well, to improve efficiency and manage UBL’s increased production volumes,” Muwema says. “We did something similar with Mansons, who is also a major transporter but on longer routes.
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We have structured a performance contract with them that gives us more, without necessarily driving up costs. Within this 3PL contract, we have included bonus malice clause, wherein we discuss gain share opportunities. “All of this helps us to run the business efficiently and drive down costs which in turn allows us to price our products competitively to the consumer,” he continues. “Nonetheless, we continue to face challenges in sourcing especially when dealing with importation of raw materials through trade barriers which include import levies and cross border charges, longer lead times and foreign exchange disruptions. “By sourcing materials locally, UBL has therefore worked to reduce and mitigate such barriers to trade, importation and transit times, whilst improving the planning of materials which are sourced from overseas.” Inspiring others Housing a number of category managers across its procurement team, in areas such as agri-business,
“PRODUCTIVITY IS AN ENGINE FOR GROWTH FOR US BECAUSE, FOR EVERY PENNY THAT WE SAVE, WE LOOK AT HOW MUCH WE CAN PLOUGH BACK INTO THE BUSINESS” - Joshua Muwema, Head of Procurement
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EXPEDITED SOLUTIONS FOR OUR CUSTOMERS Expediters International Ltd was established in 1984 primarily as a sourcing and procurement company, to support the various regional refugee efforts. Through deliveries of essential supplies, vehicles and distribution of large volumes of food aid in Sudan, Uganda, Ethiopia and Rwanda, the ethos of the company developed to offer multimodal logistics solutions that provide a competitive and reliable market edge to local manufactures to export their products. The company has continue to grow on this platform of service integrity and hands on management to offer their clientele an increasingly viable export option.
info@expediters.co.ke Tel: +253 722206353 | +253 733699001
Quality & Freshness Uncompromising CAPACITY 350,000 bottles a day; 3 IS bottle making machines; Inspection machines on line; An updated quality and analytical lab CUSTOMERS We service the top spirit packers and distillers in Kenya/Uganda and Tanzania and we are authorized and approved by major multinationals, in Food / Beverages and Spirit Segments to produce bottles for them, we produce Jars / Beverages / Water bottles. SERVICE We own a logistics fleet to ensure clients get bottles in shortest possible time DESIGN We have an in-house design team to ensure the client gets the bottle as per his type. We also have 3D printing and design facility.
www.millyglass.com gm@millyglass.com | sales2@millyglass.com +254 41 2224401/2/4 | +254 41 222 2449
An ISO 9001 and FSSC 22000 certified company
raw materials and packaging, indirects, demand, and capex/ MRO, Muwema’s passion for seeing his team thrive is clearly illustrated throughout our conversation. By growing the fundamental structure of UBL’s nine-person strong procurement team through rotation, the team has gained a diverse skill sets and raised morale across the division. “If we are to be the best performing and most trusted company in the country, we should be investing in our people,” explains Muwema. “We inspire through purpose,” he adds enthusiastically. “What we’ve really brought to the table is integrity, which is something that the company takes pride in. I think my love for people and mentoring has also rubbed off on my team members, colleagues and peers, so it is something that I’m really proud of.”
So, what does the future then hold for Uganda Breweries? With future investment in large infrastructure projects in Uganda, such as dams for electricity generation, the country will continue to witness a boost in economic growth and industrialisation. The country will also undergo oil exploration in 2022, which Muwema notes, “will further change the landscape”. “The future is bright for us,” Muwema confidently concludes. “I see us remaining a major player in the market because we are a very dynamic company. Year on year we’ve put the right plans in place and take advantage of opportunities which arise. We also have a great portfolio of products as we keep innovating. “There is a bright future for the country and for the business as we remain a major player in the market.”
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UGANDA BREWERIES LIMITED PLOT 3 – 17 PORT BELL P.O BOX 7130 KAMPALA - UGANDA +256 (0) 312 21001