Cameroon: SABC sources about 30% of raw ingredients for its brewing operations locally
From January to August 2019, Cameroonian brewer SABC spent more than XAF21 billion to purchase local agricultural raw materials and inputs used in beer production, Business in Cameroon reported on September 16.
According to the company, this is about 29.6% of the XAF71 billion it used to purchase all of the products needed during the period under review.
Overall, it purchased about XAF9.5 billion of sugar and corn grits from local producers. Officially, this represents 29% of the XAF32.5 billion spent on agricultural raw materials. In 2018, the purchase of agricultural raw materials from local producers made up 44% (XAF16.5 billion) of funds used in that segment.
For locally purchased inputs, the company estimates it to be XAF11.6 billion or 30% of its overall purchase in January-August 2019.
With these purchases, SABC had a strong impact on the sales of some local companies. An example is the case of Maïserie du Cameroun (Maiscam), an agribusiness company located in the northern region that supplies 100% of its corn grits (10,000 tons) to SABC, leader of the Cameroonian brewery sector. Same is the case for Société sucrière du Cameroun (Sosucam). Indeed, in a publication made to celebrate the 70th anniversary of SABC, former CEO of Sosucam Louis Yinda revealed that over the past ten years, his company’s turnover has risen by 60% thanks to SABC. According to the executive, this substantial rise is the result of a 58% rise in the sugar purchased by SABC from Sosucam over the past ten years.
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