ETHOPIA – BGI Ethiopia, the second-largest brewer by production volumes in Ethiopia, has divested its headquarters building and relocated its plant to its recently acquired facility, Meta, located in Sebeta town.

The relocation follows an expansion investment of over 500 million Birr (US$9.3 million) to the recently acquired plant that allows the brewery to be reequipped with modern machinery.

Market analysts viewed the acquisition as a boon to the Ethiopian brewer, which seeks to extend its presence to over 50 percent market share of the country’s beer market.

The decision to relocate the plant aligns with BGI Ethiopia’s long-term vision of doubling its business within the next five years and represents a pivotal moment for BGI as it aims to fast-track its aggressive growth ambitions.

BGI, the brewing arm of France’s Castel Group, said it has embarked on a mission to secure the necessary resources to drive sustainable growth and unlock new opportunities.

“We believe that this strategic decision will position BGI Ethiopia for accelerated growth by unlocking current capacity constraints and double the business by 2027,” Herve Milhade, the CEO of BGI Ethiopia said.

“The proceeds from this transaction will be directed towards expanding our current capacity in Meta and acquiring a new greenfield.”

In March, the brewer also announced the resumption of operations in Raya Brewery after 2-year hiatus due to the Tigray War in the Tigray regional state that lasted.

 BGI entered the Ethiopian beer market in 1997, building the seventh brewery and acquiring the nation’s first, St George Brewery, a year later.

As the market opened up, local breweries launched and foreign investors, including global majors like Heineken and Diageo, tapped into it through both acquisitions and greenfield investments.

According to Fitch Solutions, Ethiopia’s beer market dominates the formal alcoholic drinks segment in the country, accounting for 98.9% of total consumption in the sector in 2022.

Although the brewery sector has been hit by challenges within the last three years, the introduction of new products and continued investments are an indication that it is a resilient market.

Should consumer demand stay strong, Market Research projects that the beer market in Ethiopia will grow to US$3.12 billion in 2025, registering a CAGR of 10.25% per annum.

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