Procurement and Sustainability Strategy in Africa IN ASSOCIATION WITH
Anheuser-Busch InBev Africa
DIGITAL REPORT 2020
AB InBev: Procurement and Sustainability Strategy in Africa 02
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www.a b- i nb ev . com
ANHEUSER-BUSCH INBEV AFRICA
AB InBev harbours significant sustainability goals and is aiming to create a “company to last” through its green approach and initiatives
A
nheuser-Busch InBev (AB InBev) is “building a company to last”, and this claim has historically been backed by its
strong consciousness of the environment and supply chain ethics. As procurement and sustainability have become more central to many businesses’ operations worldwide, so too has 04
their inextricable relationship. AB InBev is one company whose sustainability-driven business ethos hasn’t been born during this new era of climate consciousness; instead, it has been supercharged by it. The realisation of the company’s 2025 Sustainability Goals, informed by reflection on the United Nations’ 17 Sustainable Development Goals (SDGs), relies on the strength of AB InBev’s procurement function in environmental and economic ethics, and in developing robust supply chains that ensure smooth business operations whilst having a positive impact on communities and the natural world. Across its global operations, AB InBev serves and operates in territories across the market readiness spectrum. At AB
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www.a b- i nb ev . com
ANHEUSER-BUSCH INBEV AFRICA
2008
Year founded
$52.3 bn Revenue in US dollars (2019)
breweries and charge an incoming fleet of EV trucks, as an example, there are particular challenges in the Tanzanian market. The breweries in Tanzania, from the facility in the densely populated Dar Es Salaam to the spaciously located one in Mbeya, lack the support structures capable of sustaining large solar panel arrays on their rooftops. In
170,000+ 06
Number of employees
Mbeya, this can be rectified by using a ground-level solar field in the area around the brewery but, in Dar Es Salaam, space limitations and the risk of flooding close off the possibility of
InBev Africa, a microcosm of that spectrum can be seen across the continent’s markets, and rising to the strategic dynamism needed for this environment is a core focus of procurement. AB InBev Africa alignment with the 2025 Sustainability Goals necessitates a region-specific approach to partnering for large-scale projects but, in some African markets, in-country expertise at the standard required can be challenging to source. Using the company’s on-site solar power objectives, namely installing panels at sites to power both the
© Hideki Machida - cleantechnica.com
Ricardo Tadeu, Africa Zone President at AB InBev CLICK TO WATCH
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07 developing a local solar field, meaning technology must catch up with the needs of the Dar Es Salaam plant. This desire to run independently of the grid is compounded by the company’s wider emissions reduction targets, with electric vehicles (EVs) set to replace fleets around the world. AB InBev Africa currently has one operational EV truck in its fleet, but its size limits it to journeys between its facilities and its smaller suppliers and customers. However, in the long-term, AB InBev aims to get a larger vehicle that can be used for the bigger bulk www.a b- i nb ev . com
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ANHEUSER-BUSCH INBEV AFRICA
D I D Y O U K N O W?
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• AB InBev’s 2025 Sustainability Goals are split into five key pillars: Smart Agriculture, Water Stewardship, Circular Packaging, Climate Action, and Smart Drinking. • Smart Agriculture – ensuring farming practices are powered by the latest technology and strategies to maximise yield, minimise spend, and mitigate environmental disruption. • Water Stewardship – exploring novel methods to cut water usage and waste across operations. • Circular Packaging – developing packaging that can be reused and recycled, as well as supporting the infrastructure that is vital to
both encouraging and enabling consumers to return packaging to the manufacturing ecosystem wherever possible. • Climate Action – working to cut greenhouse gas emissions across operations by deploying new energy technologies, developing on-site electricity generation solutions, optimising waste management, and optimising logistics operations to lower fuel consumption and switch to greener alternatives. • Smart Drinking – fostering healthy attitudes to alcohol consumption across the breadth of AB InBev’s employees, partners, and customers.
deliveries to its key customers. The
efficiency, and a new fleet of LNG-
organisation’s overall aim is to source
fueled forklifts has been deployed
less fuel from an organisational point
across its continental operations. The
of view across Africa and reduce its
trial has been successful, with its LNG
carbon footprint in Africa.
forklift performing at 100% the same
Electricity, and the infrastructure to produce and use it sustainably, are
as a diesel equivalent. Having signed a contract with
not the only solutions that AB InBev
Tetra4, 50% of its fleet has been
is deploying for its procurement
converted to LNG, resulting in a 15%
operations in Africa. Its plants, where
CO2 emissions reduction. Forklifts,
necessary, have been relaid to accom-
being nimble and easy to move in and
modate its forklift trucks for maximum
out of facilities, represent a far more 11
www.a b- i nb ev . com
ANHEUSER-BUSCH INBEV AFRICA
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efficient method of transporting loads
higher performance at smaller sizes
around sites than trucks, and LNG
and weights, will be closely watched
itself is easier to store and more dif-
as solutions to energy demands
ficult to spill than diesel. Another key
around AB InBev’s African breweries
advantage over electric units is that
are addressed.
LNG forklifts do not require sizable
The fact remains that, owing to the
batteries and space to store them.
challenges of infrastructure, expertise,
The lifespan of the batteries would
and market readiness, developing
also be an unwelcome additional
sustainable procurement operations
variable, particularly as solutions
in African markets via locally sourced
to the company’s on-site solar ambi-
solutions is a considerable challenge.
tions are still a work in progress.
In order to rise to it, AB InBev has
Battery technology’s incremental
sought to solidify its supply chain
advances, namely in delivering
through a mentorship programme
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for both its suppliers and customers.
capabilities and explaining the value
By developing their skills in business
that expanding those capabilities will
management, and coaching through
have for business growth, they are
operations, AB InBev works to grow
encouraged to seek the investment
the business of its suppliers and cus-
required to diversify their offer-
tomers to increase their capability
ings. In effect, AB InBev creates the
whilst boosting their own profitability.
partners it needs, and the partners’
This approach reaps dividends, with
success in the market is positioned to
more competitive and financially
grow simultaneously.
stable links in the supply chain opening up new possibilities for improved business and more efficient operations. By approaching suppliers with propositions beyond their current www.a b- i nb ev . com
56 GROSVENOR RD BRYANSTON, SANDTON 2191 SOUTH AFRICA T +27 11 407 1700
www.ab-inbev.com
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