Tanzania Distilleries

TANZANIA DISTILLERIES

2 | Africa Outlook issue 95

TANZANIA DISTILLERIES LIMITED FOOD & DRINK

SPIRIT OF THE N AT I O N

Timea Chogo is a leading female figure in the Tanzanian food and beverage sector. As Commercial Director of Tanzania Distilleries Limited, we receive a first-hand account of the industry and the company’s impact on the country’s development Writer: Marcus Kääpä | Project Manager: Kyle Livingstone

Our heritage with over 40 years’ existence and experience is a clear competitive advantage, it demonstrates the trust and confidence that our consumers have in us.”

Heritage is a strength. In a world that is constantly evolving, where technological advancement and the demands of the market are growing, the notion of historic and cultural roots strikes a comforting chord in us all.

For Tanzania Distilleries Limited (TDL), this is a key part of the company’s continued legacy. It’s embodied in its brands, marked in its quality, and drives the high level of care it shows its employees.

Timea Chogo, Commercial Director, Tanzania Distilleries

TANZANIA DISTILLERIES LIMITED FOOD & DRINK

“Our greatest strength is our people, each of which is a representative of the company,” says Timea Chogo, Commercial Director at Tanzania Distilleries. “Our flagship brand Konyagi is one of the oldest and most famous spirits in Africa. It is a pioneer in our market having been established in 1970 and has stood the test of time ever since.

“It is a respected brand in the Tanzanian market as well as the nation’s local spirit benchmark. We pride ourselves on Konyagi being unmistakeably 100 percent Tanzanian.

The brand stands for heritage, pride, togetherness, sharing, respect and strength of character. We are committed to ensuring that we remain

TANZANIA DISTILLERIES LIMITED TDL is a subsidiary of Tanzania Breweries Limited (TBL), a member of the Anheuser-Busch InBev group of companies. TDL’s key focus is the production, sale and distribution of wines and spirits.

Konyagi is the flagship of the company, but it also boasts a diverse portfolio of other brands including Valuer Superior Brandy, Vladimir Vodka, Zanzi Cream

the benchmark for local spirits in Tanzania.”

Strength is certainly a prominent aspect of the Konyagi brand. With a logo depicting a muscled man clasping his hands in a ring above his head - a symbol of character and unity – the brand both promises and reminds customers that they will continue to receive the same uncompromising quality and taste that they have experienced since the business was formed.

CONTRIBUTING TO THE NATION For Chogo, TDL’s impact in Tanzania extends beyond the drinks experience. The company stands as the largest single contributor to the country’s revenue and takes immense pride in this fact.

“As part of TBL, our business makes us a key partner in the socioeconomic development of Tanzania as a whole, and an active player in the agriculture value chain,” she tells us proudly. “We have direct contracts with farmers in our main agricultural inputs: sorghum, barley and grapes.

“TBL Group is also the top manufacturer and top employer, investing significantly in people, manufacturing, processes and the supply chain, creating over one million jobs in Tanzania, directly and indirectly.”

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Liqueur, Imagi Wine and Dodoma Wine to cater to consumer needs.

Konyagi, dubbed as the ‘Spirit of the Nation’, was first produced in 1970, thus making it one of the oldest Tanzanian brands. In 2009-2011 and 2012-2014, Konyagi received the Super Brand Award.

TDL has diverse national coverage within Tanzania ensuring that company products are locally available across the region. Konyagi is also being exported to other markets such as Kenya, Rwanda, Zambia and Burundi.

4 | Africa Outlook issue 95

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TANZANIA DISTILLERIES LIMITED FOOD & DRINK

This year, TDL partnered with the Ministry of Agriculture, and the Tanzania Agricultural Research Institute (TARI), to introduce the direct contract farming model to 24 grape farmers in Hombolo, Dodoma, with the aim of developing the grape industry. The pilot project has so far proven to be a success; to date, TDL

has purchased 233 tonnes of grapes from the contracted farmers and is committed to expanding this project in the next grape season.

On top of this, as part of TBL, sustainability is a significant part of business, and the group focuses on areas that drive the greatest impact in the communities in which it operates.

THE SPIRIT OF TDL TDL has over 125 permanent employees in the company and over 400 employed on a fixed term basis. People are the foundation of the business, and TDL strives to engage employees while focusing on frontline leadership. The company’s employees are the primary drivers of all its processes, and TDL fosters empowerment, autonomy and ownership among its people and its core values.

TDL employs world class manufacturing practices in its supply chain operation. The company runs its supply and logistics operations based on two comprehensive management systems: voyager plant optimisation (VPO) and (DPO) distribution process optimisation. These management systems give

Salute Finance Limited Salute Finance Limited (SFL), the market leader in operating lease financing, has stood as a proud partner of Tanzania Distilleries Limited (TDL) for half a decade.

In the period of continuous growth up to becoming Tanzania’s premier distiller, SFL has supplied best-in class Toyota vehicles on lease to TDL in support of its operations, sales, and distribution.

This proud partnership is founded on mutual values of excellence in operations and customer experience.

It’s on this foundation that SFL will continue to match TDL’s ambitions, and humbly enrich each of their successes.

For more information about Salute Finance Limited or Karimjee Jivanjee Group: contact@karimjeetz.com

TDL the tools it needs to assure company operations run efficiently, achieving continuous and sustainable performance improvements.

6 | Africa Outlook issue 95

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TANZANIA DISTILLERIES LIMITED FOOD & DRINK

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Salute Finance Limited is the Financial Services arm of the Karimjee Jivanjee Group (Est 1825). Since launching in 2012 SFL has become the leading leasing company providing tailor-made lease solutions in Tanzania, and now expanding across East Africa.

Driven by its dedicated team of financial experts SFL’s key areas of strength and value are its unmatched customer experience, transparency and professionalism. This has been built on the principals of Honesty, Trust & Integrity.

The parent company of SFL; KJL Group with its presence for 196 years has positioned itself as one of Tanzania’s successful companies. The group is committed to growing and enabling, expanding and diversifying its portfolio, currently operating in five business sectors in E. Africa with flagship brands such as Toyota Tanzania, Sterling generators and Salute Finance Limited.

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TDL has established itself as a reliable and responsible exporter of spirits, thereby contributing to Tanzania’s export drive and foreign earnings. The company’s Konyagi flagship spirit brand has been doing exceptionally well in the export business.

Africa Outlook issue 95 | 7

TANZANIA DISTILLERIES LIMITED FOOD & DRINK

AFRICA OUTLOOK: HOW DID YOU BECOME INTERESTED IN THE FOOD AND BEVERAGE INDUSTRY? TIMEA CHOGO, COMMERCIAL DIRECTOR: “I would say I probably stumbled upon it. I say this because there were two experiences early on in my career where I wanted to change jobs, and the opportunities advertised were in the fastmoving consumer goods (FMCG) industry.

I was rejected for not having any FMCG experience, and this really frustrated me as I kept asking myself, ‘how do they expect me to get any FMCG experience if they won’t give me the opportunity to gain some?’.

“From then on, I was determined to take this on as a personal challenge, to not only land myself a career in the FMCG industry, but also to ensure that it was a renowned multi-national organisation. I used this to fuel my career aspirations because I believed in myself, I had the potential, and I knew that if I kept working hard the opportunity would present itself when the time was right. Because of that perseverance, I landed an opportunity with Unilever.

“I recall that when I received the opportunity back then to join Unilever, I mentioned that I was surprised to be considered for the opportunity and it was reiterated that the organisation seeks people with the right potential and culture fit, and that they train for the rest. At that point, I knew I had made the right choice.

“This experience enabled me to be where I am today and heading for the commercial function for TDL under TBL is one of those life-long ambitions I have always aspired to have.”

“TBL is committed to employing sustainability at each stage of the brewing process from, ‘seed to sip’,” Chogo continues. “For this reason, we pour ourselves into our work.

From farm to brewery, and brewery to market, we take pride and ownership in every step of our business. We are paving a road for a better tomorrow that we’re all proud to be part of.

“Our first sustainable goal is Smart Agriculture, in which 100 percent of our direct farmers will be skilled, connected and financially empowered by 2025. As the largest consumer of grapes in the country (at 70 percent) we are committed to work directly with grape farmers to grow natural 8 | Africa Outlook issue 95

ingredients using good agricultural practices. Providing agronomic and financial support, we therefore ensure the quality of our products while actively supporting livelihoods of farming communities.

“For us, being a key partner in the socio-economic development of Tanzania starts at the seed.”

ANSWERING MARKET DEMAND According to Chogo, TDL has been a part of an industry that is currently experiencing a positive and steady growth, one that comes down to the diversification of consumers buying across the various business segments of high-end, mainstream and mass products.

On top of this, the increase in locally produced spirits in Tanzania also being introduced into the market in recent years, and the subsequent rise in consumption, had led to an expected annual market rise of 7.2 percent (CAGR 2012-2025).

“It is definitely an exciting space to be working in at the moment, not only with respect to business growth but also with regard to working for a globally renowned organisation such as Anheuser-Busch InBev, where the consumer is at the centre and heart of everything we do,” Chogo

TANZANIA DISTILLERIES LIMITED FOOD & DRINK

informs us. “It is a privilege to be able to work with an organisation where our brands connect and bring people together to celebrate life every day.

“But as well as this, being the first female to lead TDL since its establishment over 40 years ago adds to the excitement of turning around the business, reclaiming number one market leadership position, as well as an opportunity to leave behind a legacy I can be proud of.”

TDL has established itself as a reliable and responsible exporter of spirits, thereby contributing to Tanzania’s export drive and foreign earnings. The company’s Konyagi flagship spirit brand has been doing exceptionally well in the export business.

“We currently export Konyagi to Zambia, Rwanda and Kenya and are looking to expand to more countries within and outside the African continent,” Chogo says. “In addition to our flagship brand, we intend on expanding our other brands in the TDL portfolio, namely Zanzi Cream Liquor and Valuer Brandy into these export markets.

“Currently, Tanzania has two grape varieties locally, white - Chenin Blanc, and red - Makutupora red. As a key partner to the government, our

ambition is to introduce and develop other international grape varieties in the grape industry so as to explore and expand the export market, and to increase our competitiveness in the wine industry as well.”

TANZANIA DISTILLERIES Tel: +255 (22) 2860510/2 www.ab-inbev.com Africa Outlook issue 95 | 9

TANZANIA DISTILLERIES

TANZANIA DISTILLERIES Tel: +255 (22) 2860510/2 www.ab-inbev.com PRODUCED BY AFRICA OUTLOOK MAGAZINE