One Billion Rand Bet by Heineken that More Will Switch To Its Beer

Heineken is one of many beers enjoyed by sports enthusiast when they sit down to enjoy a great game. Some opened the first beer when they placed their bet on their favourite team, while others light a fire and enjoy a beer while they wait for the fire to ready for a steak or two. In the sunny country, there is always a reason to have a cold beer, after work, all weekend long or you could share a couple with your friends on the beach. This is maybe one of the main reasons why Heineken decided to announce its action of betting a billion; this is to prove that more South African’s will drink its beer than any other beer.

25% Brewing Capacity Increase

Heineken, a Dutch beer company together with its partner in Namibia, decided to increase its brewing capacity in the Sebideng plant situated just outside of Johannesburg. The increase of 25% will cost the beer company R1 billion. The beer brewed at Sebideng will also be distributed to other neighbouring countries, although Heineken said in a news conference that it loves the looks of the market in South Africa.

More South Africans Switch To Amstel and Heineken

As a global company, Heineken as a company showed results that South Africa is a powerful driver of its growth internationally. Beer drinkers in the country are switching to Heineken and its other brand Amstel. With things the way they are in the state, it might be a huge risk to take, but Heineken feels it can make this large bet that the beer shifting trend will continue. The project to increase the brewing capacity at Sedibeng not far from Johannesburg started in 2010. It will cost €65 million, a cost confirmed by Heineken this week, due to exchange rates it is the equivalent of just over one billion South African rand.

€65 Million Investment in South Africa’s Sebideng Brewery

What the beer brewing company plans is to produce about seven million hectolitres of beer. The ocean of beer will be exported to countries such as Malawi and Zambia. At the moment, the company has 18% in the market share in South Africa and sees much room for growth. Based on the country’s beer performance over the past three years, the company is hugely optimistic. It identified itself as a country that will play a significant role in Heineken’s growth international strategy. The brand enjoys a high level of acceptance by the consumers in South Africa.

Heineken beer enjoyed double-digit growths in the country, so did its Amstel beer and Strongbow Apple Cider also had a considerable increase in the country. When the company looked at the numbers of each country, South Africa was one of the top performers and one of the countries that shows the highest growth percentage over the past couple of years.