Employees of Meta Abo Brewery pile their complaints as the company remains silent about its transition and their future. On similar unfolding, BGI is waiting the Ethiopian Trade Competition and Consumer Protection Authority (ETCCPA) to approve the buy out.
Girmachew Mandefro, chairman of the trade union of Meta which has about 340 members from the total of 500 employees informed Capital that the management teams of Meta from Diageo has left the company without giving clear information about the new owners and their agenda for its employees.
As he explains, the employees have not received any information whatsoever on the matter. “Both Diageo and BGI Ethiopia has stayed silent after making agreement on the acquisitions of the company,” Girmachew stated, adding, “we have concerns about our future, on whether they are going to let us continue our job or make us leave.”
BGI Ethiopia which has plans to rejuvenate the brand, in its statement sent to Capital disclosed that after having concluded the agreement to procure Meta Abo Brewery S.C. from Diageo, BGI Ethiopia is now waiting for the approval of the ETCCPA.
As sources from BGI said, though the two companies completed their agreement, approval from the authority has taken more than three months challenging the whole operation of Meta.
“BGI will start communicating with employees and ensuring that the concerns of all key stakeholders are attended to and will launch its investment immediately after securing the approval,” the statement reads.
“In particular, Meta’s employees and the community in Sebeta will continue to enjoy all existing benefits; while they should also expect reasonably significant improvements. This is well in line with BGI’s well-reputed CSR activities that have reached out to communities elsewhere around its breweries and beyond,” the statement further disclosed.
The brewery which is based out of Sebeta, Oromia region has about 3.7 billion birr in government tax debt starting from 2017.
Diageo thus entered into an agreement for the sale of Meta Abo Brewery, to BGI, which is part of the Castel Group. The sale was subject to approval by the conditions of ETCCPA with everything set to completion by early 2022; however this has faced a slight delay.
Following the acquisition, Meta Abo joins BGI’s other five breweries i.e., St. George Brewery in Addis Ababa, Kombolcha Brewery, Hawassa Brewery, Zebidar Brewery and Maychew Northern Brewery with a combined production capacity of 3.6 million Hectoliters of beer annually.
Prior to this, Meta Abo was sold to Diageo in 2012 after privatization at a price tag of 225 million dollars. After acquiring the factory in 2012, Diageo made 119 million dollars in investment for the expansion of the factory, and has since pumped a total of 344 million dollars in investment throughout the years for its expansion with the aim of transforming the brewing industry in Ethiopia. The brewery also supported local communities through provision of clean water.
Meta Abo brewery was established by the Ethiopian government and Ethiopian private nationals in 1963 as a share company. Initially, the production capacity of the brewery was 50,000hl per annum.