The growth of SAB from a small brewer into one of the leading companies in South Africa, has been rooted in the belief that we need to invest in our country and our local communities, in order to grow and develop.
Today, we are a major force in the South African economy, with our beer and soft drinks divisions providing employment and income to hundreds of thousands of households at the same time as making a significant contribution to government’s tax revenue. This is part of our commitment to demonstrate leadership in every dimension of our business.
Ultimately, we are committed to investing in South Africa because we believe in our country. Throughout the value chain, we seek to deliver superior value to three key constituencies in a manner that supports economic development:
- South Africa retailers
Over the years, SAB has supported South African agricultural initiatives, particularly those that promote rural development. This in turn has supported local economies through the number of jobs created by the commodities we buy, including malting barley, hops and maize.
A recent study showed that particularly SAB’s beer operations have positively affected employment in South Africa, with SAB providing 1.9% of the total employment in the country in 2013. 283 187 jobs were created by being either directly or indirectly connected to the beer industry.
Key components in our supply chain include maize, hops and barley. By investing in the local agricultural sector, we have particularly provided direct and indirect employment opportunity to rural communities. This is in line with government’s National Development Plan (NDP).
We have a particularly strong focus on developing emerging black farmers, with initiatives such as SAB’s Taung Barley Farmers programme in the Northern Cape, a project that began in the early 1990s encouraging local barley production. This had a dual purpose in that it created a broad based supply chain for SAB, as well as a sustainable source of income for local farmers and smallholdings. The initiative has particularly since grown to support over 120 barley farmers.
KZN Maize Procurement
In partnership with the Agriculture Department, SAB set up a joint venture in 2011 that particularly saw the company procuring locally grown maize from farmers in Bergville, KZN. The project has since expanded to the uThukela and Amajuba districts of KZN, giving opportunity to local farmers.
SAB also started the Go Farming initiative that particularly supports the company’s future requirements for locally sourced barley. The initiative supports the development, growth and sustainability of emerging and small-scale barley farmers, assisting them in developing a sustainable, reliable and competitive local agricultural supply-chain for the company.
In order to provide the future malting capacity required to meet consumer demand for our brands and to particularly reduce the volume of imported malted barley, we are building a R700-million maltings plant next to our Alrode Brewery in Gauteng. The construction of the new plant will see the company increase its requirements for locally sourced barley by more than 30%.
Coleus Packaging (Pty) Ltd
SAB is proud to own a particularly 60% share of Coleus Packaging (Pty) Ltd; South Africa’s sole metal crown manufacturer and supplier for the beverage industry. Coleus has a manufacturing plant in South Africa that provides a number of job opportunities for the local community, as well as a joint venture operation in Uganda called Coleus Crowns. Both plants supply the twist off and pry off caps that all local beverage consumers have become accustomed to.
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Hop harvest 2014 success...
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