Beer license brewing business in Africa’s test-tube

The South African company now thinking about bringing brand nines (J. & J. beers) to the continent has revealed it may export to East Africa and was also hoping to set up a distribution…

Beer license brewing business in Africa's test-tube

The South African company now thinking about bringing brand nines (J. & J. beers) to the continent has revealed it may export to East Africa and was also hoping to set up a distribution network in Uganda and Rwanda.

With the advent of new brewing companies in the region, the beer trade here was put to test in recent years. Following the withdrawal of Amul, SABMiller Limited made local announcements in early 2012 that it will not be entering the East African market.

After months of negotiations, the suspended Amul has re-started on a limited basis in two wholesale outlets in South Africa. The negotiations between the producers of the lager beer brands Snl and Amul should soon extend to a formal licence for imported brand nines.

Absa Investment Advisors were contacted for their thoughts. According to the firm’s member Trevor Russell, there have been licensing discussions between Amul and AMBI Capital B.V. – which has ownership in the brand nines licence.

“Initially, Amul was interested in securing a licence where it can sell their brand and it doesn’t have to be the Amul version. It could be a relationship with AMBI for it to distribute their brands in Africa. The talks have been ongoing for a while but have not been completed,” says Russell.

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