Nigerian Breweries (NB) is improving its local sourcing of inputs and packaging materials while strengthening competition in the drinks market.
At the annual general meeting (AGM) held last week in Lagos, Jordi Borrut, managing director, said hundred percent of the brewer’s packaging materials come from Nigeria while 60 percent of its raw materials are sourced locally.
“We work closely with the farmers and integrate them through our own technical assistants that help these farmers. This encourages better yields,” he said.
He said NB took the lead in the beer and malt sections of the Nigerian market last year while coming second in the stout category with Legend and Turbo King brands. He added that in a bid to solve the mobility of products and increase market reach, plans are in the pipeline to expand distribution centres to increase the number of distributors above the current 1,500.
Borrut also said in a bid to maintain a healthy competition in the market and drive consumer satisfaction, various decisions will be carried out on all the products, ranging from brands to bottle, with consumer satisfaction and revenue being the determinants.
Martin Kochl, supply chain director, said that NB, in its partnership with local farmers and vendors, has improved the process of sourcing raw materials locally. He said that sorghum constitutes 70 percent of the company’s raw materials but plans are on to explore other substitutes like barley which can be found in the northern part of the country. He further explained that plans and research are ongoing to incorporate the use of barley as an alternative.
“Every product and brand has a difference, which is determined by the type of raw materials and natural resources used during production. Customer satisfaction is the goal,” he said.
Nigerian companies are exploring local inputs to reduce overdependence on foreign raw materials.
According to the Manufacturers Association of Nigeria, local raw-materials sourcing in the manufacturing sector averaged 60.29 percent in 2018, as against 63.21 percent recorded in 2017. Raw materials sourcing above 50 percent signifies expansion in that segment while any number below 50 means contraction.
Sade Morgan, NB’s corporate affairs director, said the brewer is working on reducing carbon emission in its production process, explaining that the company works on doing that every year.
“We monitor our production process and seek to drive down carbon emission and also reduce the amount of water usage and see that for the future generation, we are very efficient in our water usage,” she said.
“Although Nigeria is blessed with abundant resources, including water, water is still a very precious resource. We are focused on driving this down and as of last year we had driven down our water usage by 41 percent,” she disclosed.
She added that some of the company’s goals include sustainability, safety and health of consumers and host communities, adding that NB puts in place policies that align with its aims while being conscious of consumer’s needs.
Odinaka Anudu& Gbemi Faminu
