Nigerian Breweries Plans to Source 60% of its Materials Locally

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The Nigerian Breweries PLC (NB)‎ has announced plans to increase sourcing of  local raw materials to 60 percent by 2018.

The Manager, Corof localmmunications and Brand Public Relations of NB Plc, Mr. Patrick Olowokere, stated this during a factory tour of one of the firm’s major raw material suppliers in Ado Awaiye in Iseyin area of Oyo State, Nigeria.

“Our global target is to achieve 60 percent by 2020, but we have said to ourselves that by 2018 we can achieve that target.”

“By 2020, Nigerian Breweries would have finalised plans to increase its sourcing of raw materials from 57 to 60 percent, the margin is small but apt.‎”

He further explained that the company was sourcing about 57 percent of its raw materials locally and that it had started partnering with local farmers in different parts of the country to increase the percentage.

‎”The Company was always looking at ways to partner with local farmers and processors to develop agricultural value chains that will strengthen the economy and save foreign exchange.‎”

“Over 250,000 sorghum farmers benefited in the Northern agronomical zones as at 2013, producing over the 100,000 tons the company needs annually.‎”

The company is currently sourcing about 99 percent of its packaging materials locally and is keen to work with more indigenous companies to boost local food production.

Olowokere said that this covered locally manufactured cans, crown corks, crates, bottles and labels among others, which were all part of strategic partnerships with local manufacturers.

“Before now, we used to source our canning materials from Europe and as time went by, we realised that it was not sustainable.‎ We decided to look at backward integration which is the only way to promote sustainability and local content development.”

We decided to look at backward integration which is the only way to promote sustainability and local content development.

“NB then partnered with a company called GZ International for the production of cans for its canning lines, while other packaging materials are also sourced locally at a cheaper cost.

“Now, we are at 99 percent sourcing our packaging materials from local manufacturers with an assurance from NB that it will buy the materials they produce,” he said.

Mrs. Yemisi Iranloye, the Managing Director of Psaltry International Company Limited, one of the firm’s major supplier of cassava starch, said that NB Plc, is the biggest buyer of its cassava starch,

“NB is one of our major client off-taking 60 percent of our Food Grade Starch used as binding agents in producing most beverages, foods, cosmetics and pharmaceuticals.

According to her, the country has started benefiting from its investment as the import substitution policy of the Federal Government in cassava starch has earned it $4 million in the 2016 financial year.

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