ABInBev Africa | BBR - Brochure

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Produced by Jassen Pintado Written by Mateo Rafael Tablado Art direction Omar Rodríguez Interviewee Fernando Figiacone, Vice President of Supply Chain in Africa for ABInBev

Alignment with best practices and global standards contribute to surpass different challenges faced across the territory, enabling a sustainable operation in brewing, completely invested in its surrounding communities

ABInBev Africa


he origins of ABInBev

late 1990s, as the company grew into

in Africa go back to

Mozambique, Tanzania and Zambia

1895, when the Castle

through different ventures.

Brewery was created by founder brewer Charles

September 2016, ABInBev brought

Glass in Johannesburg, South Africa

along global brands Budweiser,

(RSA). It only took two years before

Corona and Stella Artois, now popular

the company was listed on the

on the entire continent.

Johannesburg stock exchange. In 1950, the brewery’s corporate


headquarters were moved from

“ABInBev Africa represents one of the

London to Johannesburg, with the

shining lights within ABInBev, globally.

purpose of achieving growth and

There are so many achievements to be

expansion. Five years later, the

proud of”, stated Fernando Figiacone,

Ohlsson’s and Chandler breweries

Vice President of Supply in Africa for

were acquired by Castle, renaming


the group as South African Breweries (SAB) EXPANSION ACROSS THE CONTINENT


After acquiring SABMiller in

ABInBev’s operations in Africa take place across eleven countries through three main territorial business units: • The West territory encompasses

Besides arriving in Zimbabwe soon

Ghana and Nigeria. Focus brands in

after, the most prominent expansion

this area include Club, Hero, Trophy

era for SAB took place during the

and Budweiser beers.

Food and Beverage

ABInBev Africa represents one of the shining lights within ABInBev, globally. There are so many achievements to be proud of - Fernando Figiacone, Vice President of Supply in Africa for ABInBev

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ABInBev Africa

• Botswana, Mozambique, Tanzania, Zambia and Uganda belong to the

Artois and Hansa are the key brands in the South.

Southeast unit. Main brands in this territory include Kilimanjaro, Mosi, 2M, St Louis and Club.

In South Africa alone, the company provides 7,000 jobs, supporting a beer value chain from seed to sip

• The South territory is formed by


of more than 250,000 individuals

Eswatini, Lesotho, Namibia and South

and ultimately contributing to over

Africa. Brutal Fruit, Budweiser, Carling

1, 000, 000 livelihoods. With raw

Black Label, Castle Lager, Castle Lite,

materials sourced from more than

Corona, Flying Fish (who recently

1,200 farmers, SAB is able to produce

created a flavored spritzer), Stella

a 30 million hL volume, exporting 14

Food and Beverage

brands into 28 different countries

Africa, securing supplies for

across Africa, besides exporting to

bottle production.

countries in different continents. Boosted by new breweries opened

In the wake of economic uncertainty and the need for recovery, SAB

in Mozambique and Nigeria during the

recently reaffirmed its commitment to

last three years, in 2021 the company

ignite the South African economy as it

reached a 50 million hL production

pledges to invest to R4.5bn – adding

across the continent.

impact to an industry that already

Recent investments include a stateof-the-art malting facility in Zambia,

contributes 1.3% of the national GDP During 2018, the brewery launched

and also investment in a takeover of a

Brutal Fruit Ruby Apple Spritzer,

glass manufacturing facility in South

which became the largest selling

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ABInBev Africa

We ended a strong 2021 with growth. We will continue to push for the same performance going forward

- Fernando Figiacone, Vice President of Supply in Africa for ABInBev


Food and Beverage

innovation ever in the continent,

University and Darden University, all

growing total brand volume by 40%

of these as part of ABInBev between

and driving double-digit growth.

2015 and 2021.

“We ended a strong 2021 with growth in volume, revenue and


EBITDA. We will continue to push for

Operations in Africa bring along

the same performance going forward,” different challenges due to the the executive said. infrastructure in some countries, A LONG TENURE IN BREWING PROVIDING LEADERSHIP Fernando Figiacone graduated from

as well as other factors such as commodity fluctuations and worsening currency exchange rates. To these

the Catholic University of Argentina

common situations, the COVID-19

as an Industrial Engineer. Figiacone

pandemic brought additional burdens

also earned a postgraduate degree

to logistics and lead times.

in Food & Beverage Marketing from

“These are part of the challenges

the University of Belgrano (Argentina)

faced, but they are also what excites

and a Master in Company from the

us and drives us to perform,”

University of San Andrés (also in

Figiacone explained.

Argentina). Other postgraduate studies taken

The strong management systems in place across ABInBev Africa bring

by Figiacone include Supply Chain

the company to the same level as all

Training in MIT (Massachusetts

zones, globally. Constant training,

Institute of Technology), Stanford

adoption of best practices and KPI

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ABInBev Africa

tracking has enhanced its leadership,

businesses. Also, 95% of procurement

increasing autonomy across every

is spent through suppliers with

team and successfully achieving

significant ratings in respect to local

benchmark levels. Notable areas

business empowerment.

which have become optimized include logistics, supply and the development

nearly $6.6 million and $5 million in

of a returnable glass bottle system,

Supplier and Enterprise Development

among others.

Initiatives, respectively.


These programs have enabled the company to help develop and train nearly 1,000 emerging farmers,

conditions when ABInBev purchased

increasing the local barley, hops

SAB Miller, SAB committed to invest

and corn production feeding the

R1billion ($70m) into SA economy by

supply chain.

the end of 2021 in three key areas

From 2017 to 2021, investments

of investment spend: Agricultural

of more than $13 million have helped

Development, Enterprise and

agricultural development programs.

Supplier Development, and Societal

The company’s commitment to

Upliftment initiatives.

enterprise and supplier development,

Efforts have been consistent, as


In 2020 alone, the company invested

local procurement and local

in the last five years the company

businesses has allowed for the

invested more than $93.5 million

creation of programs such as the

in procurement with Black-owned

SAB Thrive Fund, not only becoming

Food and Beverage

The challenges faced are also what drives us to perform - Fernando Figiacone, Vice President of Supply in Africa for ABInBev

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ABInBev Africa

a transformation factor within the

efficiency in the three business units

company’s supply chain, but also

forming ABInBev Africa. The Voyager

providing much-needed jobs in

Plant Optimization program deploys

local communities.

best practices and standardization of operations. The program evolves


continuously, improving and certifying


every process, leading to a safe,


sustainable operation of every

Support from ABInBev through global

production plant.

programs contribute to increasing


Also, the Africa zone head office,

Food and Beverage

based in South Africa, oversees every


business unit, playing an essential role

Personnel working at ABInBev Africa

of support regarding supply,

develop unique skills after undergoing

logistics, procurement, finance

demanding training. The company can

and people management.

easily state that its staff is comprised

“We have been able to optimize

of some of Africa’s finest, most

our operations despite operating in

brilliant individuals, whose sense of

hugely challenging environments,”

commitment and ownership drives

said the executive.

them towards delivering excellence in execution despite any challenges

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ABInBev Africa


Sorghum Cleaning Plant

Rice Milling Plant Rice Milling Plant

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April 2022

Food and Beverage

faced. Hence, the company strives

seem to provide an infinite supply of

to maintain a low turnover rate.

ingredients for brewing, the reality is that these coveted commodities must


be managed wisely to ensure their

Along its tenure operating in Africa,

improved noticeably within the

ABInBev has found out that, as

company’s drive to sustainability set

there are many resources that may

to 2025 is the efficient management of

availability for time to come. One of the areas which has

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ABInBev Africa

water resources, as during the last five from the municipality. The company years water usage has been reduced

set the goal of improving conditions

by 20%. The company, partnering

with possible solutions to water

with organizations such as the World

restrictions challenging communities

Wildlife Fund has improved conditions

in Mozambique and Namibia.

of water availability in communities across the continent where it

On a related matter, the company has set a goal for 2025 to use 100%

operates. One of the successful efforts of returnable or recycled packaging. In


is the borehole dug for the Caledon

Ghana and Nigeria possible solutions

Maltings facility, reducing demand

are being tested to increase recycled

Food and Beverage

content in PET. Tanzania is already

tons of waste collected. Meanwhile,

experiencing PET-less bottling with

in South Africa, the EPR (Extended

brands such as Grand Malt being

Producer Responsibility) program

packaged in recyclable cans.

will allow an efficient management of

On its behalf, the Zambia branch

single use and returnable products,

created the Manja Pamodzi project,

thus implementing circular economy

aimed to improve sanitation and

initiatives within communities.

hygiene through waste collection. The

Regarding the energy used to brew

815 collector program boasts 76%

and bottle ABInBev products, the

women, adding more than 14,000

company set the goal of obtaining

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ABInBev Africa

100% of electricity from renewable

14 GWh of electric power, reducing

sources, and enforcing a 25%

CO2 emissions by 12,443 tons. And in

reduction of carbon dioxide emissions

Johannesburg, the Alrode brewery is

across its value chain. This feat seems

powered by bio-gas.

to be approached on time, as the seven

These results have prompted

Castle Lite breweries in South Africa

ABInBev into announcing the global

already operate with solar power, and

goal of achieving net zero emissions

only in 2021 these generated more than across its value chain by 2040.

Food and Beverage

“Sustainable development is a massive focus for our business as it is for many other businesses,” Figiacone remarked. EVERY RESOURCE TO ACHIEVE UPCOMING GOALS ABInBev Africa has a ten-year plan


1895, 2016 como ABInBev África

in place to increase its capacity in different countries through different


flexible projects. The goal for 2022

Alimentos y bevidas

is reaching 500,000 hL of product exported across Africa. “Our mission is to support Africa’s growth, by producing the best African Beers with pride, through a highly

CONTACT: www.ab-inbev.com fernando.Figiacone@za.ab-inbev.com

engaged team, improving performance year over year. The focus is to further improve our performance reaching a very high utilization of our assets, and enabling our expansion capacity to support our zone and global growth strategy,” finalized Fernando Figiacone, Vice President of Supply Chain in Africa for ABInBev.

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www.ab-inbev.com fernando.Figiacone@za.ab-inbev.com

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