Category: Beverages

Tapping into Africa’s drinks

According to a research report published by Canadean, total consumption of non-alcoholic beverages in Africa in 2013 was 51,559 million litres. Africa has a population of approximately 1.2 billion people and a rapidly expanding middle class will reach 128 million by 2020; resulting in many more consumers with disposable income to spend on discretionary products and services. Food Processing Africa explores the latest beverage and beverage manufacturing facilities launches all over the continent.
Big players
SABMiller Namibia, which previously imported all its beer from neighbouring South Africa, recently opened a newly constructed $33.3 million (R446m), 260,000 hectolitre brewery in Okahandja city, 70km north of Windhoek. The brewery which is modelled on global best practice, is one of SABMiller’s most efficient and environmentally-friendly breweries of its size in the world.
Cobus Bruwer, MD of SABMiller Namibia, says its investments in Namibia,aligns with the government’s Vision 2030 of an industrial nation, “This is a seminal occasion for SABMiller in Namibia and represents the latest investment by the company in the African growth story. Not only will the brewery produce fantastic tasting beers, it will also contribute to the creation of a vibrant local manufacturing sector. This will in turn allow us to accelerate the emergence of small and medium sized Namibian businesses which are so important to the life blood of the economy and help create a growing population of skilled employees by supporting education and providing training.”
According to the brewery, 30 million non-returnable glass bottles have been replaced by returnable bottles since work began at new premises, while cardboard packaging previously used has been replaced with re-usable plastic crates. Says Bruwer: “This, as well as minimised transport requirements due to local production and distribution, has significantly reduced landfill and carbon emissions. In addition, the brewery plans to use 3.25 litres of water per litre of beer in the brewing process – just below SABMiller’s worldwide average of 3.3 litres per litre of beer.”
Bruwer says investments across the African continent underline SABMiller ‘s belief in the continent.
Speaking to the Financial Mail (February 2015) Coca-Cola Eurasia & Africa president, Nathan Kalumbu, supported this view, stating that having Coke products within arm’s reach of desire is an ongoing challenge as markets in Africa continue to grow: “We continue to see a number of societal trends in Africa — improved infrastructure, greater education, positive demographics and increased urbanisation — that represent growth opportunities for Coca-Cola. The region already accounts for about 10% of Coca-Cola’s total revenue and volume, and we expect this to double in less than six years.”
Coca-Cola has most recently injected $17bn (R227bn) in investment in the continent. Along with community focused projects, Coca-Cola is launching an initiative called Source Africa to get its product ingredients locally. The company will also pump money into new manufacturing lines, cooling and distribution equipment and production.
The poor quality of drinking water in both rural and urban areas in some African countries has led to consumers spending more on bottled water, soft drinks and juices. At present Coca-Cola bottlers in West Africa make its products from concentrate derived from a French unit, while a plant in Swaziland provides concentrate to bottlers in the rest of Africa.
Coca-Cola is furthermore cementing its footprint in Africa with the forthcoming merging of its Southern and East Africa bottlers, allowing a leaner expansion with the pooling of resources and manufacturing, distribution and marketing capability across the region.
According to the company, Coca-Cola Beverages Africa (CCBA), headquartered in South Africa, will be the largest Coca-Cola bottler in Africa and 10th biggest in the world. This will happen when SABMiller (owner of ABI, which already bottles 55% of Coca-Cola’s volumes in South Africa) and Gutsche Family Investments (which controls Sabco, a Coca-Cola bottler for the past 74 years) combine their soft drinks operations, following a deal announced in 2014.
Serving 12 countries and accounting for over 40% of all Coca-Cola beverage volumes on the continent, the new entity is expected to have revenues of $2,9bn (R38,8bn) and a 17% operating margin.
Industry entrants
A relatively new player in the beverage market is Cape Town based Breva Bev Co, a subsidiary of Bumi Hills Group, which has launched a malt-based drink for non-alcohol drinkers. According to the company, there is a growing demand for alcohol-free malt drinks. The sector has hitherto been dominated by international alcohol companies like Becks and Bavaria.
Says Breva Bevs’ Gladys Mawoneke in a statement, “We have a huge emerging middle class in South Africa that does not drink alcohol. Because of their disposable income they seek a drink that they can drink comfortably as adults when they are out and about and when they are at home – a drink that talks to their image and that they can use to ‘badge’. Containing neither hops nor fermented barley malt, it does not undergo any fermentation process. It somewhat taps into a glamorous image and globalised lifestyle that neither juice nor teas nor colas can offer.”
Manufactured and bottled in Wellington, Cape Town, Breva is packaged in a green flint bottle with a twist-off crown closure. It comes in four flavours that blend well with malt – Passion Fruit, Apple, Peach and Pineapple.
Late in 2014, Namibia Breweries launched Vigo, a premium malt based cooler described as “an invigorating, lightly sparkling soft drink available in two flavours: Marula, which has a sweet-sour, fruity taste, and Wild Orange, which is also known as monkey orange – grapefruit-sized fruits which have a distinctive fresh citrus taste. Namibia Breweries agrees that there is a demand for such beverages: “the launch is in response to the global consumer thirst for a premium malt based beverage option. It is also in keeping with the move towards non-alcohol refreshment, especially for those who are driving, and is an alternative to soft drinks for more sophisticated palates.”
Keeping within the theme of nonalcoholic frothy drinks, Naturex, an international group specialising in natural ingredients, has developed a natural, sustainable and innovative ingredient, UPtaia, which creates foam/froth in non-alcoholic beverages.
“UPtaia is sustainably wild harvested in a 800,000ha Chilean quillaia forest and works in such a manner that it improves the stability of the foam and the cling effect, which then helps the manufacturer to create delicious frothy drinks that consumers love. It is also a great alternative for replacing non-natural solutions like propylene glycol alginates. The level of foam obtained is proportional to the amount of UPtaia in the drink. The optimal usage level, between 40 and 200ppm, will depend on the height of foam expected.”
Taking it a step further, global producer, marketer and provider of technology-based natural ingredients, Döhler recently launched a portfolio of gluten-free malt extracts made from barley. Says the company: “The increasing demand for gluten-free products around the world is presenting the food and beverage industry with new opportunities and challenges. According to our in-house market research, in 2013 alone, over 7,000 new products labelled ’glutenfree‘ were introduced to the global food and beverages market. Through market research and trend spotting across the globe, Döhler detected this trend in its early stages and has conducted intensive research on a new generation of malt ingredients.”
Concluded the company: “We provide both the food and beverage industries with application-specific, gluten-free malt extracts that can be used as specific flavour components and as natural ingredients for a variety of products for natural colouring and sweetening.”
SABMiller: Tel +27 11 881 8492;
Coca-Cola Eurasia & Africa:Tel +27 +27 11 644 0666;
Breva Bev Co: Tel +27 21 434 3887;
Naturex: Tel +33 4 90 23 96 89;
Namibia Breweries: Tel +264 61 320 4999;
Döhler: Tel +27 21 872 4976;;

Coffee exports exceed target for 2014/2015 fiscal – Uganda

Banyankore Kweterana Cooperative Union (BKCU) Ltd has been ranked among the best performing unions in Uganda, having processed and exported 43 containers (825.6 metric tonnes) of coffee in the financial year 2014/2015. The new tonnage surpasses the target of 31 containers (595.2 metric tonnes).
The chairman of the BKCU Board of Directors, Geoffrey Beingana, said the share capital was projected to increase by Shs 66 million but went up to Shs273.7 million. The union has 350 primary cooperative societies from Ankole subregion.
Says Baingana: “The good progress is being affected by competition where many coffee buyers in the market bother less about the quality of coffee.”
BKCU general manager, Nelson Niwahebwa, revealed that the best coffee deliveries were recorded from
cooperative societies of Ijumo Ruhinda in Mitooma District (309,912 kg), Nyamirima Mutegaya in Ibanda District (248,060kg), Kyabandara in Sheema District (180,609kg) and Kanyansheko in Ibanda District (49,475kg). Niwahebwa additionally requested government to fully release the remaining balance of war
loss compensation worth Shs985m to enable the union to operate fully.
– The Monitor

Fairview’s journey towards achieving a carbon neutral footprint

The Fairview Cheesery in the Western Cape began its quest to achieve a carbon neutral status in 2009. Management says this was a response to the negative environmental effects of man-made climate change and because 75% of global greenhouse gas (GHG) emissions are generated by businesses.
Now, Fairview Cheesery has been recognised by the Carbon Protocol of SA as the first carbon neutral cheesery on the continent.
A comprehensive assessment of its carbon footprint by Promethium Carbons revealed that the cheesery initially had an annual footprint of 1,743t/CO2e associated with the production of its cheese products.
The Fairview team thereafter embarked on an emissions reduction project to offset this footprint via emission avoidance and sequestration.
Under the guidance of Earth Patrol, a South African carbon management consultancy, the cheesery became involved in two primary carbon offsetting projects: planting trees on the Fairview farm, at local schools, an old age home and a park; and a project to install energy-efficient compact fluorescent light (CFL) bulbs in the homes of Fairview farmworkers and in a number of areas across KwaZulu-Natal and Gauteng (including low income and subsidised housing areas and special needs centres such as old age homes, orphanages and shelters).
Furthermore, the cheesery erected solar panels to reduce energy consumption. An economiser was installed in the company’s factory. This involved the use of steam to heat water in the boiler which reduced boiler fuel consumption by approximately 130 litres a day.
Fairview’s owner, Charles Back, said the company is continuing its efforts to become a greener, more environmentally aware business.
“We will strive towards innovation and education in the interest of protecting the environment for future generations,” he said.
Fairview is a third generation family owned farm. Back says there is a strong relationship between those who own and work the vineyards and the land that provides raw materials.
The company had previously implemented various measures to ensure that farming and production practices were on par or even exceeded the standards set by local and international authorities, he said.
“South Africa is a country rich in natural resources and biodiversity, which is one of the key areas of attraction for international tourism. However it is also a country that has traditionally been strongly agriculture oriented and reliant.”
The key challenge going forward lies in managing the future sustainability of natural resources and biodiversity,  said Back.
Many groups within the South African wine industry have recognised this “challenge” and been pro-active in pursuing eco-friendly farming methods and practices.
Back noted that 10 of Fairview’s farms have Fairtrade accreditation. Fairtrade is an international organisation focused on ensuring equality and sustainability in agriculture in Africa, Asia and Latin America. The organisation promotes fairer trading conditions for small-scale farmers and workers.
In order to bear the Fairtrade logo products are required to meet stringent social, economic and environmental standards. Products are also required to undergo rigorous annual audits to ensure continued compliance.
Back selected Fairview’s most established and successful wine range to carry the logo – “and maximise the benefit to the community”.
“Goats Do Roam is our largest wine brand, established 15 years ago. It is well established and recognised in 35 countries across the world,” he said.
The Goats Do Roam 2013 range was the first of Fairview’s beverages to be produced using Fairtrade-certified grapes. A percentage of the funds generated from the sale of these wines will be put into various community development projects.
“Through this process workers learn, practice and acquire invaluable life, leadership and management skills – this is truly empowering,” said Fairview’s Fairtrade officer, David Loos.
Fairview is also a member of a South African initiative, the Integrated Production of Wine (IPW), which ensures that grape and wine producers are responsible for their immediate natural environment. The IPW involves an extensive set of vineyard and cellar standards that are regularly monitored by means of internal audits and/or independent auditing.

Nature conservation
In 2008 Fairview partnered with Cape Nature to implement a conservation management programme on the farm and surrounds.
The project commenced on the Paarl Mountain, where Fairview teamed up with the Working for Water social and environmental rehabilitation programme to clear an alien pine forested in an attempt to restore part of the mountain’s natural vegetation (predominantly fynbos).
Fairview’s alien vegetation removal efforts now also include the removal of major environmental concerns such as blue gum, port Jackson and black wattle (which grow across the neighbouring farms and surrounds).

The future
From the 2010 vintage onwards, Fairview wines all carry an integrity and sustainability seal.
“This certifies that we are committed to the agreed standards set by the four organisations involved,” says Back.
Fairview is committed to:
•    Upholding the standards set by the participating organisations.
•    Using environmentally-friendly products, in both its vineyards and cellars.
•    Continuing the eradication of alien vegetation both in agricultural and natural areas.
•    Planting indigenous grasses and plants in its vineyards to prevent soil erosion, improve soil condition and create corridors for the safe movement of natural fauna.
•    Reducing carbon emissions in its vineyards and cellars.
•    Ensuring safe working conditions for all its employees.
•    Continuing water conservation.
•    Keeping records of the indigenous fauna and flora on its property.
•    Continuing participating in similar initiatives among the business’s contractors.
•    Furthering education and training.
Fairview Cheesery: Tel +27 21 863 2450;;

Expo and conferences focus on cost savings and efficiencies

Messe München International and its subsidiary MMI South Africa are hosting the inaugural Food & Drink Technology Africa trade fair and conference at the Gallagher Convention Centre, Johannesburg, on 18-19 March.

Cottage scale fruit juice enterprises –

The wide availability of fresh fruit in tropical Africa and the simplicity of producing and selling simple fruit juices creates real opportunities for micro-businesses.

WILD sees potential for beverages in Africa

German company WILD, which focuses particularly on beverage flavours, sees Africa as having huge potential in beverage developments.