SAB sources nearly 100% locally for its beer production

/ PRESS RELEASE / This content is not written by Creamer Media, but is a press statement provided.

South African Breweries (SAB) are on track to source 100% of all their raw materials used in the brewing process from local South African suppliers. This was instrumental in the company achieving Tier 3 B-BBEE status, up from the Tier 4 it hovered at for several years.

“We are proud to source just over 97% of all our raw materials, including barley, hops and corn from local suppliers, many of whom are emerging black farmers and other SMME businesses that we support and help develop through our intensive entrepreneurship and agriculture. programs,” says Zoleka Lisa, VP Corporate Affairs, SAB and AB InBev Africa.

Since the combination of SABMiller and AB InBev at the end of 2016, SAB has focused on radically transforming its supply chain, bringing producer and consumer closer together and thus helping to strengthen the local economy.

While SAB has been a forerunner for many decades in bringing local black suppliers on board, giving them market access and empowering them through business support and development programs, a more robust approach has been taken in recent years. to strengthen these efforts.

“We are a proudly South African company and believe this should be evident throughout our value chain. Thanks to the localization of our company, we are able to bring the producer closer to the consumer and, consequently, to strengthen the local economy, a task for which President Ramaphosa and his government have challenged the private sector to collaborate with them,” says Lisa.

One of the biggest challenges faced in particular by SMEs in South Africa is their ability to adequately service the large corporations in the country. Often overlooked by large organizations, they lack the opportunity to prove themselves as competent service providers.

SAB’s entrepreneurship and agriculture programs are key to supporting Black-owned SMEs. The company has committed almost R1 billion over 5 years to these initiatives through its Public Interest Commitments (PICs) to the South African government during the business combination. The R1-bn goes beyond SAB’s efforts for more than two decades to accelerate the economic inclusion of black entrepreneurs in South Africa.

These programs enable SAB to effectively take small businesses from ideation to growth and then transform SAB’s supply chain.

“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 a large company, we must take the initiative to support and encourage small local businesses that show potential to support our success, always aware that we too were once just a start-up. »

Through SAB’s localization efforts, the company not only identifies suitable local suppliers, but helps build their capacity through comprehensive business support training, agricultural program development and funding and entrepreneurship.

“Investing and developing local suppliers at all stages of life is what allows us to accelerate our localization strategy and get closer to the goal of 100% local,” says Lisa.

SAB’s transformation program is not limited to suppliers alone. His R7.3 billion empowerment transaction, SAB Zenzele, gave part ownership of the business to nearly 30,000 retailers across South Africa and helped transform the lives of some of the most vulnerable people in the country, including people living in low-income areas, people living with disabilities, young people and women, through the SAB Foundation. Introduced in 2010, SAB Zenzele transferred a total of 8.45% of SAB shares to three main beneficiary groups consisting of 40,000 previously disadvantaged people: SAB Employees, SAB Zenzele Holdings Limited which holds shares for the benefit of retailers belonging to of Blacks and the SAB Foundation. which supports entrepreneurial projects targeting local communities.

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