Tanzania Breweries Ltd
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stablished in 1930 and originally called Tanganyika Breweries, the company became a union between Tanganyika and Zanzibar in 1964 and changed its name to Tanzania Breweries Ltd (TBL). The company became nationalised between 1967 and 1974 before the opportunity arose to make 50% of the business privatised in 1993. By 2011, TBL had commenced exporting in Zambia and today, a subsidiary of SAB Miller, Tanzania Breweries Ltd claims the title of the oldest brewing company in Tanzania. Maintaining its position as the largest brewer in the country, TBL boasts a 76% market share. The company operates breweries in Dar-Es-Salaam, Mwanza, Arusha and Mbeya, as well as having a malting plant in Moshi. TBL’s best-selling beer brands include Safari Lager, Kilimanjaro Premium Lager, Ndovu Special Malt and Castle Lager.
Industry challenges As experienced by all organisations in the brewing industry, 2015 was a challenging year with a 20% increase in excise duty hitting the sector. TBL though proved to be resilient due to its ability to control costs and offer an unrivalled product mix, ensuring results were not negatively impacted. Its agile response to the changing environment enabled the company to enhance its brand’s positions and strengthen the business for future growth. TBL remain focused on delivering the highest standards to its customers and offering a balanced portfolio that resonates with consumers. It is this attitude that drives TBL to maintain its market leading position, in the competitive environment in which it operates. Sales revenue registered a 10% growth in 2015 with a corresponding operating profit growth of 7%.
The organisation offset lower sales volumes with price adjustments, variable cost savings and a successful range of products. Meanwhile the Tanzania beer industry witnessed a slowdown of 6.5% following the increase in excise duty and overall sales volumes declined. Wine and spirits volumes however registered strong growth and TBL’s exceptional performance from its wine and spirits business boosted its position further. Though the tough conditions in a competitive market may impact the industry as a whole, the quality performance of TBL’s brands remains unmatched and its continuous innovation and improvements helps to ensure it will not lose the lead lightly. Sustainable growth It’s clear the 86 year old organisation is not focused on short term wins but dedicated to long term growth and sustainability. As a subsidiary of SAB Miller, TBL has shared initiatives in place to achieve sustainability. SAB Miller’s businesses across the globe report their performance across five sustainable imperatives through a bespoke management system, the Sustainability Assessment Matrix (SAM). Providing global focus and alignment whilst allowing local markets to respond to local needs; the 5 shared imperatives aim to tackle joint risks in partnership. The following summarises the SAM performance measurements for Tanzania Breweries Ltd: A thriving world: With an objective of accelerating growth and social development, TBL has a 2020 target to support small businesses, focusing predominantly on farmers, suppliers, distributors, retailers and local entrepreneurs.
A sociable world: TBL’s well embedded employee alcohol responsibility training allow its staff to achieve reducing the use of harmful alcohol consumption with over 400 current employees having participated in the training. A resilient world: Securing shared water resources and reducing waste, TBL improved its water efficiency by 4% in 2015. In addition, a water risk assessment was completed or reviewed for two breweries. A clean world: Tanzania Breweries Ltd recycles or reuses 84% of brewery waste and has a programme in place to promote the recycling and reuse of its packaging. In order to achieve its objectives of reducing waste, 91% of TBL’s beer is sold in returnable packaging. A productive world: Pledging to support responsible and sustainable use of land for brewing crops, TBL has a barley farming programme in place. In 2015, a baseline assessment was completed to understand key economic, social and environmental risks relating to the programme. A pint half full Optimistic and confident, Roberto Jarrin, Managing Director of Tanzania Breweries Ltd has a positive outlook on the future. Whilst a significant part of its strategy will rely on the sustainability of the economy, Jarrin believes that a combination of TBL’s actions, commitments and people will ensure the company continues to emerge from the turbulence as a stronger and even more competitive business.
Oliver Moy Publisher For enquiries email okm@aubusinesscoverage.com