Heineken is considering building a new brewery in the South African province of KwaZulu-Natal. The Dutch brewer has already shortlisted from 80 potential locations two sites in eThekwini and KwaDukuza close to South Africa’s third most populous city Durban, The Citizen reported today and cited a local official. Gerrit van Loo, Managing Director of Heineken South Africa, did not want to confirm this information.
Heineken has identified South Africa as one of the markets with the highest potential for further growth since the country is the second largest economy in Africa behind Nigeria and is the only African member of the G20 group. With a market share of only 18 percent in South Africa compared to more than 80 percent of South African Breweries (SAB) which is part of AB InBev, Heineken considers itself still a “challenger company” with room to grow.
Just two months ago, Heineken announced to invest ZAR 952 million (USD 66.51 million) in its Sedibeng plant outside Johannesburg/South Africa to enlarge it from 5.3 million hectoliters to 7.5 million hectoliters by 2020 (inside.beer, 2.8.2019).
"We are hugely optimistic about South Africa based on our performance in the last three years," said Gerrit van Loo at that time. "South Africa is identified as a country that can play a role in our international growth strategy. Our brands, both in beer and cider, are enjoying a high level of acceptance by South African consumers."