heading
Welcome to the World of
Presentation to AGRIFORUM
Cape Town June 2009
headingContent
1. Our Product: Beer
2. Our Market Environment
3. Heineken and Society : Agricultural projects Africa
4. Heineken South Africa
headingAll Natural Ingredients
• Nature provides us with beer’s 4 basic ingredients
• All these ingredients can be varied in endless combinations
• Some estimate there are around 40.000 different beers in the world!
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• No Additives; No Preservatives
• No Fat
• Vitamins B 1, 3 and 11
• Minerals
• Antioxidants
Our Beers are 100% NaturalStorehouse of Nutrients
headingRelatively Low in Calories
headingContent
1. Our Product: Beer
2. Our Market Environment
3. Heineken and Society : Agricultural projects Africa
4. Heineken South Africa
headingHeineken’s five operating regions
•* = the part of the total group volume that relates to beer
125 breweries in more than 70 countries
56,000 employees
Group Beer Volume*: 162 million hl (2008)
headingThe brewing industry: top 10
headingHeineken®The International Leading Brand
headingContent
1. Our Product: Beer
2. Our Market Environment
3. Heineken and Society: Agricultural projects Africa
4. Heineken South Africa
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We work hard to put social and environmental sustainability at
The heart of the actions that support Heineken’s priorities.
Our Role in Society
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1. Energy
2. Water
3. Safety
4. Agriculture
5. Supply Chain Responsibility
6. Responsible Beer Consumption
7. Our Impact on Developing Markets
Sustainability Agenda: 7 focus areas
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Secure the quality and availability of raw materials in a sustainable
way:
And try to localize as much as possible
4. Agriculture
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a new development assistance model: a way to combine the
strengths of the 3 sectors
helping reach the Millennium Development Goals
create stakeholder alliances along the value chain
What are Public Private Partnerships, what do they offer?
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Technical and managerial expertise
Access to (private) financial resources
Innovation is part of the culture
Long-term interest in the market
Ability to organise sustainable supply structures
Strengths of the Private sector
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Ability to provide supportive regulatory environment
Ability to mobilize resources for improved infrastructure
Ability to maintain law and order
Ability to “upscale” sucessful pilot projects
Strenghts of the Public sector
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Ability to reach marginal groups/consumers/suppliers
Commitment to food security, human rights
Ability to mobilize support from public sector and private
charitable sources
Ability to organize communities/reducing transaction costs
Strenghts of the NGO sector
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Burundi - Brarudi - Sorghum
Rwanda – Bralirwa – Maize
DRC - Bralima – Rice
Egypt – ABC – Barley / Malt
Algeria – Tango – Barley / ( Malt )
Sierra Leone – SBL – Sorghum
Ghana – GBL – Sorghum
Nigeria – NBPlc – Sorghum / Malt
RSA – Sedibeng – Barley / Malt
Agriculture projects Sorghum, Mais, Rice, Barley
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SORGHUM.
The agro project is assisted by EUCORD for collaboration with
the public and private agro sector in Burundi as well as countries
that are willing to subsidise such projects.
Recently a subsidy was granted by the Dutch Government.
Aim is to be able to produce 250 k hl.of 100% sorghum beer.
5000 farmer families involved.
$ 1.5 m. injected in rural communities.
5000 children access to primary education.
20 schools receive support.
Burundi - Brarudi
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Maize.
Minimex delivers maize grits to the brewery. The installations are
new and state of the art.
To secure quantity, quality and GMO free maize Bralirwa has put
up a company Bramin together with Minimex.
300 ha is available to produce maize this year.
Extra funds are applied for from the EU. a.o.
Rwanda - Bralirwa
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Rice.
Project also with assistance from Eucord.
Schokland funds were applied for and obtained.
Progress. In 2008 the rice project was installed in 2 provinces. In
2009 up to 7 provinces.
In 2008 – 1.600 T. Need 9.000 T.
In 2009 – 6.300 T. Need 11.000 T.
In 2010 – 10.000 T. Need 13.000 T.
Total budget for 3 years 6 m.US $. One third subsidised.
DRC - Bralima
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Sorghum.
NBPlc has decades of experience with sorghum growing and
brewing since the ban on malted barley imports in 1988.
Sorghum is produced by many small scale farmers through
Regional Production Coordinators. ( 50 farmers per RPC )
NBPlc requirement = 60k Tons of malted- and 15k.raw sorghum.
NB provides technical, technological support and a guaranteed
market at competitive prices.
In cooperation with several institutes hybrids are developed with
good growing/malting and brewing qualities. Ambition is to reach
a yield of 5 tons /ha. Present yield is 2 – 2,5 t./ha.
Nigeria - NBPlc
headingNigeria - NBPlc
2006 5,500 hectares
2007 8,500 hectares2008 10,000 hectares2009 12,000 hectares
2010 (plan) 25,000 hectares
Most farmers are small scale – ca 2 hectares per farmer.
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Barley / ( Malt )
The RSA has large barley growing potential. It’s grown in the
Western Cape on dry land and in the Northern Cape under
irrigation
Farmers work in cooperations that supply breweries / malteries.
A major South African cooperation is investigating a venture with
Sedibeng, building a maltery in proximity to the Sedibeng
brewery.
Alternative variety are considered.
RSA - Sedibeng
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Infrastructure
Availability and quality of water
Security of crops
Continuity
Prices / costs ( versus world market prices )
Weather changes.
Competition with the food chain.
Vulnerability / Threads to Agro projects Africa.
headingContent
1. Our Product: Beer
2. Our Market Environment
3. Heineken and Society: Agricultural projects Africa
4. Heineken in South Africa
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Heineken’s 1st export of beer to Africa - 1900
1st local operation in Central Africa - 1923
Expansion in Central Africa
-DRC [1923] / Burundi [1956]
-Rwanda [1959] / Congo [1960] / Lubumbashi (2008)
Local operation West Africa
-Nigeria [1946] / Ghana (1962) / Sierra – Leone [1963]
Growth/Expansion – MENA
-Egypt / Gulf / Lebanon / Tunisia / Algeria
Namibia (2004)
South Africa (2006)
Historical Landmarks
iHistorical landmarks
headingBeer volume by region
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Top 5 Breweries in Africa
5 %
18 %
2 7 %
16 %
3 3 %
3 %
11%
17 %
4 8 %
2 0 %
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Others
Guinness
Castel-BGI
SAB Miller
HeinekenInc South Africa
Ex South Africa
Competitive situation in Africa
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