AB InBev’s Africa’s plan to grow market share, prospects for SA

AB InBev, the world's largest brewer, recently released its third quarter and nine month results for its Africa operations. Ricardo Tadeu, Zone President for SAB and AB InBev Africa, discussed the company's performance and future plans in an interview with CNBC Africa. Tadeu highlighted the healthy volume growth the company has experienced over the first nine months of the year, with volumes increasing by over 2%. He attributed this growth to the premiumization of their brands, such as Corona, Stella Artois, and Flying Fish, which have shown strong profitability and higher margins. Tadeu also mentioned the company's focus on efficiency and best practices, leading to an overall improvement in business performance. In order to sustain this growth, AB InBev has invested 2.8 billion rand in new production lines in South Africa, the first such investment in over eight years. The company aims to address overutilization of existing capacity and meet the growing demand for its products. Tadeu emphasized the importance of offering consumers more choices, including both local favorites like Castle Lager and international brands, to cater to diverse preferences and occasions. Despite potential challenges like a downgrade in South Africa's business outlook, AB InBev remains optimistic about the country's growth prospects. The company's long-term view, demonstrated through ongoing investments and product launches, reflects its confidence in the market and commitment to sustainable expansion.