Brewing up economic growth in Africa
Brewing up economic growth in Africa Written by Dale Benton Produced by Justin Brand
FOLLOWING ONE OF THE WORLD’S LARGEST ACQUISITIONS INVOLVING SABMILLER, AB INBEV HAS SET ITS SIGHTS FIRMLY ON MAJOR GROWTH NOT JUST IN AFRICA, BUT FOR AFRICA
or centuries, AnheuserBusch InBev (AB InBev) has brought people together by brewing some of the world’s most renowned beers, including Budweiser, Corona and Stella Artois. With a footprint which spans Africa, Europe, Asia and the United States, AB InBev can lay claim to the title of being the world’s largest brewer. But the organisation has loftier ambitions than size, and a responsibility to focus on more than just the bottom line. Its vision is to generate real growth that in turn creates a better life for more people in more places, and the company is doing this by investing heavily in people and communities. This is evident nowhere more so than in Africa, where in 2016, there was a business combination between AB InBev and SABMiller, a leading brewer on the continent. As with any acquisition, changes
were made to both structure and staff complement. AB InBev Procurement and Sustainability Vice President, David Hauxwell, has been blown away by the dedication and the love for the company felt by those who remained. “We have been able to go to market and find passionate people, and more importantly, kick off our Global Management Trainee and Procurement Trainee programmes to attract and retain the best talent. AB InBev has people who really believe in this company and in the culture of what we are trying to achieve,” he said. SABMiller, founded in Johannesburg in 1895, was very much rooted in Africa. AB InBev is at the beginning of its African journey, but it can call upon more than a century of experience as one of the largest and most successful brewing companies in the world as it looks to the future.
A map outlined in barley in The celebration of the Grower’s global Appreciation Day business combination signals the company’s intent on establishing a firm foothold in the African market, not only to drive success and profit but to drive growth and create a real legacy of change across the entire continent. “We realise that to be a sustainable, futurefocused business, the resources, health and wealth of the communities in which we operate are vital,” said Hauxwell, who is responsible for leading the procurement and sustainability charge. Hauxwell, who has more than two decades of experience in the supply chain and procurement space, said AB InBev had a clear procurement
“We realise that to be a sustainable, future-focused business, the resources, health and wealth of the communities in which we operate are vital” DAVID HAUXWELL VP of Procurement and Sustainability at AB InBev
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Visit our website for more information: convoy.ducorpgroup.com
REDEFINING VALUE LOGISTICS FOR EAST AFRICA
Fleet Network (Owned And Subcontracted): 200+ Trucks
African Countries Covered: 6
Regional Hubs: 3
Warehousing Space: 10,000Sqm
Dedicated Staff: 170+
Freight Moved: 300,000 Tons
Industries Served: 9+
Logistics Service Verticals: 11+
Convoy Haulage Limited provides pivotal transp and contract logistics solutions for many DSE lis companies, and multinationals in Tanzania who fields of beverage, tobacco, humanitarian relief, and exploration, FMCG, and industrial supplies.
We have one true goal â€“ to provide cost effective, efficient, agile and reliable logistics to all of our c Our road freight services include full truck load, l than truck load, domestic and transit transport, w our contract logistics services include value adde
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DELIVERING SUCCESS FOR ABINBEV services such as warehousing, distribution, supply chain management and customs brokerage services. For our clients, we provide full visibility into order status, generate performance reports, and keep scorecards of service quality which are on par to ISO requirements and Occupational Health and Safety Assessment Series (OHSAS) certified. We are also gradually increasing our offerings for customers by proposing innovative strategies to shorten the time from order to delivery, reduce carbon footprint on inbound and outbound transportation, and further work towards cost minimization on freight.
COMMITMENT TOWARDS JTI We provide dedicated trucks to TCC, with standby trucks parked for loading 24/7. We keep TCC trucks away from unhygienic material and are committed to only tobacco transport.
We work with ABInbev strategically to lower transport spend and bring innovation towards their transport requirements; tackling complex issues such as trailer modifications to increase payload and tyre modifications to increase lead times.
www.convoy.ducorpgroup.com When you navigate through the road network of Tanzania, you are bound to come across a Convoy Haulage truck, a company that was born out of a single vision to provide pivotal transportation solutions and an unrivalled commitment to the customer. Convoy Haulage was founded in 2013, focusing its operations on providing logistics services across East Africa, including entire geographical coverage of Tanzania where the company is based. Convoy’s network reach also spans up to South Africa and South Sudan, where trucks fulfil routine consignments. The company has helped deliver more than 300,000 tonnes of freight. The company has over 170 employed staff, is based at three major hubs in Tanzania, three state of the art workshops, and over 10,000sqm of warehousing facilities within those three hubs. With such a significant workforce, the company has one true goal – to provide cost effective, efficient, agile and reliable logistics to all of its clients - many who are owned and/or operated by global multinational giants. Convoy Haulage’s road freight services include full truck load, less than truck load, domestic and transit transport, while its contract logistics services include services such as warehousing, distribution, supply chain management and customs brokerage services. For its clients, many of whom are also Dar es Salaam Stock Exchange(DSE) listed, Convoy Haulage provides full visibility into order status, generate performance reports, and keep scorecards of service quality which are on par to ISO requirements and Occupational Health and Safety Assessment Series (OHSAS) certified. The company is also gradually increasing its offerings for customers by proposing innovative strategies to shorten the time from order to delivery, reduce carbon footprint on inbound and outbound transportation, and further cost minimization on freight.
Brewing success Delivering Success Tanzania Cigarette Company Ltd (TCC), a member of of Japan Tobacco International, is Tanzania’s premier tobacco manufacturer and distributor. Convoy Haulage Limited is the logistics provider for TCC’s finished goods and raw materials. Convoy Haulage moves freight for TCC throughout Tanzania and additionally in regions covering Zambia, South Sudan, and DRC.
In the company’s journey to become the premier transporter and logistics company throughout East Africa, one of the largest international companies currently operating in Africa chose Convoy Haulage as its partner of choice – the world’s leading brewer, AB InBev. With AB InBev Tanzania, Convoy Haulage was selected not only for its cost effectiveness but for its key service offerings that were customized to AB InBev’s requirements. This understanding and local touch allowed Convoy Haulage to provide true value to AB InBev, value that surpassed all expectations that the brewer had in the company.
“Convoy Haulage has delivered high quality added-value logistics solution for TCC. Convoy’s team understand and adhere to our strict SHEQ requirements and standards, and provide us with timely reports, dedicated new trucks, and cost-optimized services. Convoy Haulage is our strategic partner and we look forward to maintaining this over the years” Paskas Rauya, Logistics Manager for TCC
PATTNI FOUNDATION Each year, Convoy Haulage pre determines a percentage of turnover, to allocate towards not-for-profit initiatives through the Pattni Foundation. The Pattni Foundation is an in house grant-making foundation. The Pattni Foundation has previously been involved with projects that include: • Close and Clean Water Project which involves building of water bole holes in remote areas of Tanzania • Provision of bed sheets and pillow cases for local hospitals in Geita • Bridge2Aid Empowerment project- Training of rural Health workers • Project Shiksha – envisions aims at getting more and more students enrolled into the primary classes and to put a check to the current number of primary school dropouts
and supply chain strategy across its entire African footprint which helped to provide the best raw ingredients sourced from local providers. “AB InBev is continuously investing in a legacy which has been established through a commitment to work with local farmers, retailers and entrepreneurs to brew beer using only the best ingredients.” As AB InBev focuses on enriching the lives of local suppliers and producers, Hauxwell has overseen something of a procurement transformation in recent years. “What we see today in the procurement and supply chain space is that supply chain has taken on a much more key strategic role in an organisation like ours,” he said. “Not only are we driving efficiencies, but also leading real transformation in sustainability and entrepreneurship.” With AB InBev’s footprint covering 27 breweries across 14 countries, this strong procurement and supply chain approach is driving the top and bottom line by supporting new product development and innovation by ensuring suppliers are ready and capable. With global operations, one could be forgiven for assuming that the company applies a
“AB InBev is continuously investing in a legacy which has been established through a commitment to work with local farmers, retailers and entrepreneurs to brew beer using only the best ingredients” DAVID HAUXWELL VP of Procurement and Sustainability at AB InBev
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one-size- fits-all mentality across its operations. In Africa, AB InBev has four different business units: West, East, Southern Africa and a standalone South African business unit, which each operate in different territories. “While there are only short distances between these units, each presents its own unique challenges. We have to tailor solutions to fit each market. What is successful in South Africa, is not going to work just across the border in Mozambique. It’s about working on the solutions that will be successful, and not solutions that look good on paper,” said Hauxwell. The key element to a successful beer lies in what is inside the bottle, and in order to obtain the perfect ingredients, AB InBev invests significant funds into African agriculture. The company views the agriculture industry as one way in which it can truly support and build local communities. John Rogers, Raw Material Procurement and Agricultural Development Director for AB InBev, said the company had a best practice mentality. “We try and apply a standard approach as much as possible across our agriculture development programmes within each market and we take a farmer centric approach - our prices will be competitive - but we also focus on driving other areas that allow the farmers we work with to be more profitable, to want to partner with us and to ultimately continue to supply us with essential ingredients.”
PHOTO (left to right): Bishen Morgan, Procurement Director: Logistics and Marketing, SAB & AB InBev Africa; Taryn Rosekilly, Procurement PPM Director, SAB & AB InBev Africa; Thabo Machethe, Procurement Director: Indirects and Commercial, SAB & AB InBev Africa; David Hauxwell, Vice President for Procurement & Sustainability: SAB & AB InBev Africa; Tsungi Mandebvu, Procurement Director: Packaging, Procurement, SAB & AB InBev Africa; David Grant, Sustainable Development Manager: SAB & AB InBev Africa; Zoleka Lisa, Procurement Capabilities Director: SAB & AB InBev Africa; John Rogers, Director of Raw Material Procurement and Agricultural Development: SAB & AB InBev Africa; and Sanjay Premraj, Supplier Development Director: SAB & AB InBev Africa
AB InBev’s procurement team
This ‘farmer-first’ mentality is evident throughout AB InBev’s entire global agriculture vision. Whether it’s in North America, Europe or Asia, Rogers points to a desire for the company to develop and maintain a hands-on approach which is vital in ensuring that the company can truly develop and grow communities. “This talks to the company’s other key growth initiative of entrepreneurship. Through a number of agriculture programmes, AB InBev ensures that it has the resources in the field to drive real value to the
grower, which in this instance are the farmers and suppliers,” he said. One such example of this is evident through the deployment of trained agronomists that are the embodiment of that hands-on approach. “These agronomists are in the field, working with the farmers, providing greater knowledge and sharing best practices,” said Rogers. “They ensure the grower has the technical resources and access to latest research they need to be more productive and more efficient.” AB InBev can promise to deliver
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Powering brewin in Africa
Vodacom takes pride in enabling ABinBevâ€™s digital journey through Africa The future is exciting Ready?
growth and value to a local community and to the African agriculture space, but how does it measure that it is walking the talk? “We know we can drive tangible value within African agriculture,” said Hauxwell. “But we need to be able to demonstrate this, and we have a number of measurement and evaluation processes in place to look at who is within our growth programmes and exactly how we’re delivering that growth.” David Grant, Head of Sustainable Development: Africa Zone, can attest to this drive for growing value within African agriculture. As a brewer, sustainability and agriculture go hand in hand, as the company has a responsibility to create and foster a sustainable supply chain. “Sustainability is definitely one of the core values of our business,” said Grant. “It’s evident in a number of ways – we have grounded strategies surrounding entrepreneurial growth and development, water stewardship, circular economy and our renewable energy drive.” That renewable energy drive refers to AB InBev’s ambitious goal of sourcing all of its electricity from 100% renewable sources by 2025 and, as Hauxwell noted, the role of procurement has become more and more relevant to the
“We have to tailor solutions to fit each market. What is successful in South Africa, is not going to work just across the border in Mozambique. It’s about working on the solutions that will be successful, and not solutions that look good on paper”
DAVID HAUXWELL VP of Procurement and Sustainability at AB InBev
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TOGETHER WE MAKE A DIFFERENCE The need to provide a comprehensive supply chain service to clients gave rise in 1987 to the establishment of Unigrain and in 1991 Grain Carriers, a trading company and a road transport company. Unigrain Commodities was established in 2001 to service the winter grain market. Grain Logistics was a further extension of the group’s strategy to penetrate the supply chain. Unigrain Storage supply services to grain producers and grain processors to facilitate and manage grain on their own premises.
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People management is a high priority at AB InBev company’s sustainability strategy. “Sustainability has been a buzzword for years, however our approach to tackle it is changing. Climate change and sustainability impacts everything that we do. It affects our growers, our production and the communities we operate within.” Sustainability has become even more focused under AB InBev’s global procurement strategy through the leadership of Tony Milikin, Global Chief Procurement and Sustainability Officer. There is a commitment to impactful projects and initiatives that
will make a measurable difference. With the acquisition of SABMiller, AB InBev had the opportunity to deliver a series of entrepreneurship programmes which were aligned under the wider procurement and supply chain umbrella. “Procurement holds the key to allowing entrepreneurs access to the markets they need in order to grow their business,” said Hauxwell. “As procurement professionals, we are constantly trying to figure out how we can go beyond simple price, beyond the traditional
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relationship with suppliers and for to create 10 000 jobs across me, we’ve really cracked that with in South Africa by 2022, and the Accelerator programme.” the Accelerator programme is The Accelerator and key to reaching this goal. Entrepreneurship programmes, “We understand that by creating headed up by Sanjay Premraj, and growing the suppliers, we’re Supplier Development Director creating real, meaningful jobs and Zoleka Lisa, Procurement, and in the end, a more robust Capabilities and Sustainability local economy,” said Premraj. Director, respectively, Hauxwell looks at it from create and develop a broader perspective, the key suppliers of noting that the the future which company’s entire are representative leadership team The year that of relevant across its African Anheuser-Busch demographics. zones has what InBev can be “What we have he describes as an traced back to found in Africa is that, “African dream.” while there are a number “We want to be a company of local suppliers that we can that’s growing, a company that work with, they don’t immediately is efficient, a company that people have the capabilities required to be love to work for and that makes a real a part of the AB InBev supply chain,” difference in society,” said Hauxwell. said Premraj. “The Accelerator “We want to attract suppliers and programme works with these retain them in our company, while suppliers to grow them to a point growing that community. That’s where where they can integrate seamlessly the job creation agenda fits in.” and become key partners.” As AB InBev keeps an eye on AB InBev has set itself a target building its future supply chain, “it
AB InBev invests in many community programmes as part of its CSR strategy
also nurtures its current supply chain to ensure that the relationships we have continue to be of true benefit not only to us at AB InBev, but to the suppliers themselves,” Lisa said. A new bidding tool has been launched in the African zone for all of AB InBev’s suppliers. “We’re constantly introducing new capabilities in procurement,” she said. “As part of the new tools we are rolling out, we ensured that we went into each of our African markets to
equip those suppliers with a better understanding as to how to use the new technologies. We’re really looking at it as bringing our suppliers into the digital age by introducing them to new technologies and working with them to expand their skillsets.” This is a sentiment echoed by Premraj, who noted that the world is changing and both AB InBev and the supplier base must change with it. “Sometimes, given the geographical limitations regarding
skillset and workforce capabilities, this can prove challenging.” But that challenge is part of AB InBev’s mission to create real and tangible growth. “We want to push the change, and in many cases suppliers want to change, but don’t have the capability to do so. That’s where our Accelerator programme works to ensure longevity, relativity and helps the supplier to grow as we grow.” While Premraj and Lisa are focused solely on the African markets, creating long lasting competitive suppliers, this concept expands
“We are bringing our suppliers into the digital age by introducing them to new technologies and working with them to expand their skillsets” ZOLEKA LISA Director Procurement Capabilities & Sustainability at Anheuser-Busch InBev for Africa
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“We want to make sure that people in this continent understand that we’re here to make a difference. That we’re here to grow the communities we operate in. We truly care about Africa and we really want to grow Africa” DAVID HAUXWELL VP of Procurement and Sustainability at AB InBev
QUALITY CRATES MANUFACTURED IN SOUTH AFRICA. Chespak manufactures premium quality plastic crates, which are popular for their strength, optimal weight-bearing capacity and durability. We also have comprehensive recycling facilities and have served the beverage, bread, dairy and other industries.
AB InBev helps populations around the world to access safe water supplies
beyond African boundaries. “We try to create world class supply and world class suppliers. It’s about creating suppliers that can compete with one another, not just in Africa but on a global scale. We want to create globally placed suppliers.” Both Lisa and Premraj worked for SABMiller and were two of many people based in Africa who embarked on a new journey as part of AB InBev. With the business combination completed in 2016, the whole African arm of AB InBev is just over a year into this new venture and as one would expect with any acquisition, there were changes.
“There was some consternation from employees as to what it meant for their futures that a big company such as InBev had come in,” said Premraj. “And while there were clear similarities and shared DNA in the two companies, of course you’re going to lose people, which is unfortunate.” “AB InBev has people who really believe in this company, in the culture of what we are trying to achieve,” said Hauxwell. “They believe in the future of this company, and the future for themselves.” Two of the people that truly embody that belief and love for what AB InBev is striving for,
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are Lisa and Premraj, who had InBev looks to drive growth and to previously worked with SABMiller. empower people and communities, Lisa, for example, had been because she has been working in Africa, shaping empowered by this and directing key merger to lead some procurement strategies exciting initiatives for SABMiller, and can post the business see first-hand exactly combination. The number how AB â€œItâ€™s been of Anheuser-
Busch InBev employees
SAB entrepreneurship programme launch
incredibly interesting to be a part of this change,” she said. “The company has enabled me to work with my global counterparts, to understand and apply the best procurement practices across the two organisations globally. The concept of being an owner and dreaming big has allowed me to drive ideas that I am passionate about and that will build our business. “ As with any merger, particularly one involving one of the largest brewing companies worldwide, how much of what made it the leading brewer in Africa will still remain? “A year down the line, AB InBev has adopted or absorbed some of the best practices from SABMiller,” said
Premraj. “We operate as one company - one organisation - and we apply a set model consistently across all parts of the globe, which is made up of the best of both companies.” Hauxwell believes that the only way the company can grow in Africa is to grow Africa itself. “We want to make sure that people in this continent understand that we’re here to make a difference by growing the communities we operate in. As we progress into the future that will become much clearer and, in 10 years from now, we will be known as the best company on the continent, and the most preferred company to work in. That for me, personally, is what it’s all about. Delivering real value, and growth for both people that work within the organisation and for the communities in which we operate.”
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Anheuser-Busch InBev Brouwerijplein, 1 3000 Leuven Belgium www.ab-inbev.com