Cheers! Brewer close to sourcing 100% local for its beer production
31 July 2019 | Web Article Number: ME201915658
THE South African Breweries (SAB) is well on its way to sourcing 100% of all its raw materials used in the brewing process from local South African suppliers. This has been instrumental in the business’ achievement of a Level 3 B-BBEE status, up from Level 4 which it hovered at for a number of years.
“We are proud to source just over 97% of all of our raw materials, including barley, hops and maize from local suppliers, many of which are emerging black farmers and other SMME businesses who we support and help develop through our intensive entrepreneurship and agricultural programmes,” said Zoleka Lisa, VP Corporate Affairs, SAB and AB InBev Africa.
She added that a critical focus of SAB since the business combination between SABMiller and AB InBev at the end of 2016 had been the radical transformation of its supply chain bringing the producer and consumer closer together and in turn helping to strengthen the local economy.
“We are a proudly South African company and believe that this should be evident throughout our value chain. Through localisation of our business we are able to bring the producer closer to the consumer and in turn strengthen the local economy, a task that President Ramaphosa and his government have challenged the private sector to collaborate with them on.”
Lisa said SAB’s Entrepreneurship and Agricultural programmes were fundamental to supporting black-owned SMMEs. The business has committed close to R1-billion over 5 years towards these initiatives through its Public Interest Commitments (PIC) made to the South African government. The R1 billion is over and above SAB’s efforts for more than two decades fast tracking the economic inclusion of black entrepreneurs.
“In South Africa, small businesses are important drivers of economic growth and transformation. We believe they are catalysts for real change in our society and what our national government wishes to achieve. As big business we need to take the lead in supporting and nurturing those local smaller businesses who show potential to support our success, always aware that we too were once simply a start-up.”
Lisa said SAB’s transformation programme was not limited to suppliers. Its R7.3-billion empowerment transaction, SAB Zenzele, has given part ownership of the business to close to 30,000 retailers across South Africa and helped transform the lives of some of the country’s most vulnerable, including people living in low income areas, people living with disabilities, youth and women, through the SAB Foundation.