Zambian Breweries: Bottling Success For Zambia

Since its founding in 1963 Zambian Breweries has been at the heart of the country’s beverage industry. The company is famous for its clear beers such as Mosi Lager, Castle, Carling Black Label, Eagle, Flying Fish and Castle Lite.

The brewery’s recent take-over by Belgian drinks giant AB InBev has allowed production to continue to grow. Combined with the New Dawn government’s pro-business stance, this allows Zambian Breweries to invest in supporting local businesses through backward-linking supply chains.

Zambian Breweries was originally formed in 1963 via a partnership between South African Breweries and Labatt Breweries of Canada. Following this, the company was nationalised in 1968, during which time it operated out of two production facilities in Lusaka and Ndola.

Later, during the privatisation programme initiated by the government in the 1990s, the brewery was once again privatised with its assets and liabilities split into two newly incorporated companies: Lusaka Breweries Limited and Northern Breweries. Lusaka Breweries then went on to become Zambian Breweries.

Photo: Zambian Breweries

Fast forward to 2016 and the company was bought by AB Inbev, becoming part of the company’s global initiative to “bring people together for a better world through our products, brands, and investment in our communities.”

AB Inbev is the world’s largest beer brewer by both volume and revenue. It operates more than 600 beer brands in 150 countries and employs more than 170,000 people throughout its operations. The company made $54.3 billion last year, having seen profits grow even during the pandemic. The company owns household names such as Stella Artois, Corona and Budweiser.

Earlier this year Zambian Breweries announced an $80 million capital investment to expand its Lusaka factory and create 5,000 jobs. The investment is set to target the supply side of the business: improving technical services, brewing and enhancement of their cellars.

Additionally, the investment will unlock further innovation opportunities in the industry. At the moment, 90% of the investment will be in high-tech equipment to make operations more sustainable. Specifically, the investment will include enlargements of the company’s agriculture out-grower schemes and offer procurement opportunities to local suppliers.

Further, it will also see the Mungwi Road factory double its production capacity over the next year, creating jobs and improving productivity to meet the company’s growing demand.  Other upgrades include replacing the factory’s clean-in-place (CIP) equipment; installation of a more efficient boiler; and establishing a new milling plant.

Photo: Zambian Breweries

Michelle Kilplin, Zambia Country Director for AB InBev, praised the investment as a triple win for the community, government and company. She said, “This investment has been enabled by the pro-business and pro-investment climate being promoted by the government. We are encouraged by what we have seen so far and we as a business intend to be a big part of the economic recovery and growth of the Zambian market.”

Additionally, Albert Malunga, Lusaka plant manager, said the government had helped the company make the investment decision through its emphasis on sustainable business. He specified that the creation of the Ministry of Green Economy will help businesses to meet their green goals.

“Our response as a business is to prepare ourselves for the future by investing in new technologies which will be environmentally friendly and will help us care for the environment by reducing carbon emissions,” he said.

Zambian Breweries’ expansion is expected to have multiple positive knock-on effects for supply chains; benefiting retailers, transporters and suppliers. Moreover, government support packages - such as the 50% suspension of excise duty on clear beer and the decrease in excise duty on locally produced clear beer from 10% to 5% - has meant that more companies can now get involved in this growing industry.

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