Serengeti Breweries

BREWING UP A STORM IN TANZANIA

A TASTE OF SERENGETI

A powerhouse of the East African beverage space, Serengeti Breweries Limited continues to quench the thirst of Tanzania. Operations Director, Alfred Balikagira, discusses bottling the spirit of innovation and inclusion

Writer: Phoebe Harper | Project Manager: Bex Middleton

Times are tough for everyone now, but it takes creativity, innovation and a certain mindset to survive in business and remain competitive. Above all, we need to make sure that we can deliver together, as a team.”

As Operations Director of Tanzania’s leading beer and spirits company – Serengeti Breweries Limited (SBL) - Alfred Balikagira maintains an astute perspective of the volatile market conditions currently impacting companies across the world – whether the ongoing conflict in Ukraine, escalating inflation levels or the disruptions in supply that continue to present obstacles in the wake of COVID-19.

However, his observation encapsulates the firm values that lie at the foundation of SBL, which have secured the company’s status as a frontrunner of Tanzania’s beverage industry for the past 20 years and will continue to serve it in good stead long into the future. Indeed, SBL represents the intoxicating

combination of an unparalleled portfolio of world-renowned brands with a company culture that embraces inclusivity, creativity, and innovation.

From its headquarters in Dar es Salaam, SBL comprises two additional breweries located in Moshi and Mwanza and takes enormous pride in its flagship product of the Serengeti family of beers. A subsidiary of East African Breweries (EABL), which is in turn a subsidiary of worldwide drinks distributor Diageo Plc (Diageo), SBL thrives in alignment with the wider group’s corporate values.

“I believe that is a unique offering that SBL presents in line with Diageo and we take great pride in our brands,” Balikagira continues. “This is a business that lives its values and invests in its talent.”

BREWING UP INNOVATION

Innovation is intrinsically woven into SBL’s DNA and has risen in prominence as a response to the aforementioned market challenges. Rather than shying away from adversity in the face of prohibitively high costs of doing business as recent droughts across East Africa continue to raise the price of local grains, SBL interprets such hurdles as an avenue for further innovation.

“These circumstances call for innovation and the need for creative ways to drive efficiency and make sure that we are still able to offer our products at a price that is still competitive, but also affordable to our consumers,” says Balikagira.

This includes the deployment of digital solutions, e-commerce and interventions to optimise the manufacturing process that are intended to mitigate the impact of current performance challenges and improve efficiency.

“At the end of the day, it’s not a matter of operating in a ‘business as usual’ mode, but rather thinking outof-the-box, to ensure that our teams are empowered to innovate, identify new ways of working, and become more efficient,” he continues.

Complementing these efforts, the company continues to refresh and expand its distinguished brand portfolio by introducing new labels such as Smirnoff Ice Black and Captain Morgan. In both cases, these brands had previously been imported by SBL’s parent company, however that story is now changing due to significant investment in local production. As a result, SBL’s production capacity has grown by almost 50 percent in the last two years alone.

“We intend to continue investing in expanding our plants and infrastructure in order to have local capacity for production,” Balikagira affirms.

“WE’RE EXTREMELY KEEN TO DRIVE OUR ESG AGENDA, AND WE DO THIS THROUGH OUR SOCIETY 2030: SPIRIT OF PROGRESS 10-YEAR ACTION PLAN”

– ALFRED BALIKAGIRA, OPERATIONS DIRECTOR, SERENGETI BREWERIES LIMITED

DISTILLING THE SPIRIT OF PROGRESS

SBL’s plans for continued expansion of its production portfolio footprint are executed in line with the company’s vision for sustainability, dubbed ‘Society 2030: Spirit of Progress’. This is a 10-year action plan put in place to manage the business’s most material environmental, social and governance (ESG) issues and ultimately, its strategic approach to ESG.

With over 25 individual targets set in alignment with the United Nations’ Sustainable Development Goals (SDGs), the overall plan falls into three key pillars; promoting positive drinking, championing inclusion and diversity, and pioneering grain-toglass sustainability.

In terms of environmental efforts, SBL counts several interventions in green energy, with investments

in technology designed to reduce its carbon footprint and mitigate environmental impact. In this area, SBL’s work with the local community is also instrumental, through various tree-planting initiatives working with local farmers, and its water replenishment schemes.

“We are in a part of the world where access to clean drinking water is not always a given. The company offers support to communities that are disadvantaged in this way,” shares Balikagira. The ‘Water for Life’ scheme is a key example of this, and was founded in 2010 as a means to provide free, clean and safe water to communities around Tanzania.

Such endeavours represent a key part of SBL’s activities as a responsible corporate citizen, demonstrating a commitment to caring for both people and the planet.

AFRICA OUTLOOK: COULD YOU TELL US MORE ABOUT HOW SBL IS DRIVING GENDER DIVERSITY WITHIN THE COMPANY?

Alfred Balikagira, Operations Director: “Diversity and inclusion, especially with regards to gender, have been a major focus for us in the past few years. We have a dedicated STEM programme designed to attract female engineering graduates, who are then onboarded through a comprehensive one year course that guides them through the entire operation. Once they complete this course, they are taken on as full-time employees. We have just run our first successful programme and that first cohort has now been deployed on our production line, and the second cohort is currently halfway through the programme. Our Moshi facility now has a beer production line that is run entirely by female staff. For us, it’s not just a question of employing more female talent but allowing equal opportunity for anyone to succeed this field.”.

Entec International crowned Diageo Africa Supplier of the Year 2022

UK based Entec International is celebrating, having been named Breakthrough Performance Supplier and Diageo Africa Supplier of the Year 2022, to the global leader in premium drinks manufacturer.

Entec’s 3PMRO (3rd party Maintenance, Repair, Operations) procurement and supply chain services were recognised by Diageo with an Award for Breakthrough Performance, reflecting the roll out of Entec’s ‘Project Fulcrum’ 3PMRO business model, across the region. ‘Fulcrum’ optimises Diageo’s MRO procurement, streamlines its MRO global supply chain and right sizes spares inventory to support both demand and planned maintenance. Project Fulcrum saves Diageo significant cost, reduces its carbon footprint, simplifies administrative complexity, and returns cash to the businesses.

Congratulating Entec on the Supplier of the Year accolade, Diageo’s Head of Procurement for Africa, Arthur Mamvura, said: “Entec’s outstanding contribution and commitment to our business is hugely appreciated by all of us here at Diageo, and I hope that the Project Fulcrum team have the opportunity to celebrate this fantastic recognition.”

Colin O’Brien, Diageo’s Global Head of Beer Supply, added, “Congratulations to a well-deserved winner, in particular for the consistent effort and resilience in bringing this project to reality over a number of years! Well done to the Entec team - we look forward to further roll outs.”

Speaking on behalf of Entec, Project Manager Chris Cullen commented, “We have been shortlisted for awards by Diageo before, but we never imagined we would win not only in the Breakthrough Performance category, but also scoop the prestigious Africa Supplier of the Year title against 58 other top

suppliers nominated across many different disciplines. These awards are presented to companies that demonstrate outstanding support, flexibility and a proactive response to challenges and opportunities. This honour reflects the commitment and application the Entec team has put into delivering the Diageo Africa Fulcrum Project.

“The fact that MRO has been recognised is of particular significance,” he added. “Historically, MRO supply chains have tended to operate ‘behind the scenes’ and our achievements largely go unsung. These awards not only reflect Entec’s hard work in helping Diageo meet its targets, but also put the importance of efficient procurement and MRO supply firmly in the spotlight. The entire team couldn’t be more proud and delighted!” Entec was also listed as one of finalists in the Global Supplier of the Year 2022, along with five other regional winners.

Project Fulcrum will be operating in fifteen sites across Africa, including Ghana – where Project Fulcrum was first successfully trialled – Cameroon, Uganda and Nigeria in West Africa, South Africa an in East Africa, Kenya, Tanzania and the Seychelles.

Diageo Africa Supplier of The Year 2022

Entec works in partnership with world leading FMCG companies like Diageo to reduce CO2 emissions and cut costs by streamlining MRO (Maintenance, Repair, Operations) supply chains and using data driven purchase tools to inform procurement.

By optimising spares inventory, we:

• Improve operational efficiency

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Dar Brewery

Mwanza Brewery

Moshi Brewery

PRIDE IN PEOPLE

SBL’s people-centric concern is evidenced not just by its work in the community, but also by the value it places on the team behind the business, comprising over 800 employees both direct and indirect. The company offers various welfare and growth programmes designed to empower its staff and nurture their progression, beginning with its apprenticeship schemes.

“It’s always an exciting moment for me to see everybody growing in their own dimensions across the entire company,” shares Balikagira.

In alignment with the aforementioned action plan, SBL is currently putting major emphasis on diversity and inclusion with a particular drive to recruit more female staff.

“Our main goal by the end of 2030 – both for SBL and Diageo – is to have a 50/50 ratio of female to male employees. We have several agendas in place to help us reach this target, particularly across our management

teams and our directors overseeing the employment opportunities,” he says.

This prioritisation of equal opportunities applies both internally and externally, with any community project that SBL undertakes aimed at traditionally marginalised groups such as women or those who are differently abled, who comprise at least 50 percent of the beneficiaries.

This is also embedded into the company’s procurement process, as SBL prescriptively selects suppliers that provide equal opportunities to marginalised groups.

“We want to exercise diversity in a very broad sense across our entire ecosystem,” emphasises Balikagira.

A TOAST TO THE FUTURE

Turning to talk of the years ahead, SBL remains firmly focused on its Spirit of Progress action plan and pursuing the key metrics of its ESG agenda to ensure that it remains on track to deliver its 2030 goals. This entails

continuing to expand capacity to meet consumer demand and growth projections in a way that delivers value to both shareholders, and the wider society in Tanzania.

Drawing to a close, Balikagira returns to the importance of the SBL team as a vital means to guarantee the company’s own sustainability and unlock a prosperous future.

“We will continue to invest in our talent, making sure that we attract the best and really grow our people,” he says. “They are a critical focus since our staff are part of our success story and will help to drive this business to the next level.”

COMPANY NAME

Tel: +255 784 104 100

SBL.Communication@diageo.com

www.serengetibreweries.co.tz