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Nigerian Breweries invests N78 bln to boost local raw materials

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Nigerian Breweries, local unit of Dutch brewer, Heineken on Wednesday said it has invested N78 billion in backward intergration projects to cultivate raw materials require for some of its products in the country in the past five years.

According to the brewer’s Corporate Affairs Director, Sade Morgan, the company had invested N78 billion in cultivating locally sourced materials as well as sorghum and cassava value chain through commercial purchase and smallholder farming in the last five years.

She noted that the company had prioritised import substitution and accretion for foreign reserve with the N78 billion investment and the cultivation of locally sourced materials.

Morgan added that the company invested N20 billion in sorghum value chain in 2021 through commercial purchase and smallholder farming.

She said the company had attained about 56 percent in local sourcing of raw materials and 100 percent backward integration in packaging.

“We have done about 56 percent in local material sourcing but our packaging material is at 100 percent; the challenge with the raw material is the availability of ingredients that go into making most of our products.

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“So, that is an area where we will continue to pioneer as we did with sorghum with backward integration and investing to realise in Nigeria the products needed essentially for our products.

“But for now we want to be able to satisfy our consumers and give them the same quality of beer that they can get anywhere in the world,” Morgan said.

According to her, the company has injected $114 million in capital investments and expansion projects in Ama Brewery to build a resilient economy.

Also speaking, the new Managing Director, NB, Hans Essaadi, revealed that the company intended to invest significantly in capacity extension to meet its objectives and rising demands in the market.

“We have grown with Nigeria and it is clear that moving forward, we will continue to invest significantly in capacity extension to meet our objectives as well as demands in the market.

“We should expect much of these extensions in the east and northern parts of the country and our majority shareholder, Heineken, is committed to this and this is good as it will bring direct and indirect job opportunities for Nigerians,” Essaadi said.

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