Capital Ethiopia Newspaper

Bavaria buys major share in Habesha Brewery

Habesha Brewery Share Company agreed to sale 35 percent of its shares to Bavaria N.V. a Dutch Brewer, for 87.5 million birr. The sale of shares to Bavaria N.V. heralds the official closing of Habesha Breweries’ share sale to the public. The agreement will make Bavaria the largest single shareholder of the company.

Bavaria N.V. is a family owned brewery group in The Netherlands. It is a company which has more than 300 years of experience in brewing and managing successful overseas investment ventures.The company has a presence in 120 countries.
Established with an authorized capital of 250 million birr, Habesha Breweries has the capacity to produce 500 thousand hectoliters per year. So far, the company sold 162,580 out of the 250 thousand shares valued at 1,000 birr each. 7,858 shareholders bought the shares offered to make the envisioned beer factory a reality.  
Due to the size of its share Bavaria will have a representation both in the board of directors and the management team. This will provide a platform to share technical and managerial know how.
In September 2011 the share company had signed a turnkey contract with Lehui Food Machineries, a Chinese company to erect the plant within 15 months of beginning of construction.
A total of 16 companies initially showed interest in the turnkey project of which eight submitted technical proposals. Three were short listed. Eventually Lehui won the bid.
Habesha Brewery signed a turnkey project worth 510.7 million birr with Lehui Food Machineries, a Chinese company, in 2011. Lehui won the contract for the designing, manufacturing, erecting and commissioning of Habesha’s Brewery on a 7.5hct plot located in Debre Berhan, 130Km north of Addis Ababa in 2011. It had offered the lowest price out of four shortlisted companies. Those in contention for the deal were Ziemann Ludigsburg from Germany, Techno Expo International Businesses Co from Czech Republic and Prj Industry from India.
The technical and financial proposal, comprising 70pct and 30pct of the evaluation respectively, were done by AMS Beverage Engineering GMBH, a German consulting company hired at a cost of 11 million birr, along with Habesha Brewery.
Habesha had insisted that 40pct of the machinery be bought from Germany, including fermentation tanks, bottling machinery, carbon dioxide, waste and water treatment plants and generators.
The beer industry has a 1.3 million hectoliter gap between demand and supply. Ethiopia’s annual beer consumption grows at an average of 24 percent according to research done by Access Capital in 2009. Even though the estimated consumption of four million hectoliters in the country roughly translates into five liters per person annually, it is well below the average consumption of neighboring Kenya (12 liters) and South Africa (59 liters).