South Africa: Heineken increasing capacity of its Sedibeng brewery

Despite an economic downturn, international beer brewer Heineken South Africa will be expanding its Sedibeng brewery's production from 5.3-million hectolitres to 7.5-million hectolitres a year by 2020, ETRetail.com reported on July 29.

By 2022, production will have increased to eight-million hectolitres a year.

The total investment value of the expansion is estimated at €65-million.

While hosting media for a tour of the Sedibeng facility ahead of International Beer Day, on August 2, Heineken South Africa MD Gerrit van Loo told Engineering News Online that the facility currently produces 1.8-billion bottles and cans of its brands a year.

Electricity supply constraints have become a problem of late, with Heineken having had to buy diesel generators to keep the Sedibeng facility operational during periods of load-shedding.

Considering that this alternative is costlier than the electricity supplied by State-owned Eskom, Van Loo told Engineering News Online that Heineken is considering investing in a solar energy alternative.

Further, as part of the brand's "Brewing A Better World" global sustainability strategy, Heineken is aiming to increase its local sourcing of raw materials to 23% by 2020.

Heineken is in the process of sourcing apple juice, to use in its cider, locally, while also looking at options to grow more barley in South Africa.

Touching on the global sustainability strategy, Van Loo elaborated that the programme advocated for responsible alcohol consumption, with a primary focus on discouraging drinking and driving, binge driving, underage drinking and drinking during pregnancy.

Further, the programme also sets goals for Heineken to reduce the water consumption and harmful emissions from its breweries worldwide, while simultaneously growing with the communities surrounding its operations.

The promotion of health and safety, and ensuring correct behaviour on site, including adherence to life-saving rules, is also included in the programme.

Water is also a key area of the strategy, with the facility currently using between 3.5 litres and 3.6 litres of water for every litre of beer produced.

As part of its 2030 ambition, Heineken is aiming to decrease this to 2.8 litres for every litre of beer produced.

A number of different strategies are in place to reach this goal.

The Heineken portfolio includes brands such as Heineken, Windhoek, Amstel Lager, Stellenbrau and Strongbow.

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