ALGERIA – French beverage company, Castel, has strengthened its diversification strategy by developing green and local production with the acquisition of a 100% of the share capital of the Alver glass factory, a subsidiary of the Condor group based in Oran.
In a statement, Castel said: “Present in Algeria for nearly 20 years and a major player in beverages in Africa, Castel has signed a letter of intent with Condor Electronics for the acquisition of 100% of the capital of Alver spa.”
“This operation confirms Castel’s desire to develop its activity in Algeria, where it already has 3 industrial sites while working to reduce the use of plastic.”
Based in Oran for over 70 years, Alver is one of the leading manufacturers and marketers of glass products in Algeria, focusing on glass bottles and jars for the local beverage and food market.
The Alver glass factory was acquired in 2018 by Condor Electronics from the Italian subsidiary of the French group Verallia.
According to the French group, this investment responds to its desire to promote the independence of its activities concerning imports of inputs and packaging and to reduce the share of PET (Polyethylene terephthalate, a plastic oil-based) while helping to develop returnable and recyclable glass.
Castel said it will start to invest in modernizing the industrial facility and developing the skills of its workforce to support its long-term growth, once the transaction is approved by authorities in charge of the competition.
In line with its goal of promoting economic self-sufficiency in the regions where it operates, the French giant noted that the factory will primarily use locally sourced materials, particularly sand.
The acquisition will broaden the number of glasswork factories in Castel, the number two beer marketer in Africa, to have 4 on the continent after those in Cameroon, Angola, and Morocco.
The group generates nearly 80% of its overall turnover in Africa thanks to its company, Brasseries et Glacières Internationales (BGI).
In addition, the takeover is part of a broader to make Algeria a hub for its beverage shipments to West Africa and Europe.
Glass bottle prices have significantly increased across the globe due to rising demand from the food and beverage industries. Logistics problems, energy prices, and capacity limitations influence prices.
According to Beroe, a global SaaS-based procurement intelligence and analytics provider, due to rising alcoholic and non-alcoholic beverage consumption in all markets over the next one to two years, the global glass container market is predicted to increase at a CAGR of 4-5 percent between 2022 and 2026 and reach around 800 billion units.
Beer, alcoholic beverages, and food are three major market areas where demand will rise. The Firm adds that over the next two years, emerging markets will see an increase in investments in installing and renovating new furnaces.