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Breweries Makes World Class Beer
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Nile Breweries Limited is a top class beer company in Uganda
that deserves space in out on-going ‘Market Leaders Series’.
Today, we talk to its Managing Director, Mr. Nick
Jenkinson, who proudly reveals that Nile Breweries Limited has led the beer
market in Uganda and beyond through its numerous beer products currently on the
market. These brands have made it a world class winner in the Gold category over
the years.
In the following interview, Jenkinson tells it all and
reveals why Nile Breweries has transformed many urban and rural livelihoods and
will thus remain a ‘Market Leader’ for a very long time.
Red Pepper:Nile Breweries is undoubtedly a market leader
in the brewing industry. What is your market share?
Managing Director: For the past 18 months, our observation is that the
market share of the two breweries in Uganda has been very evenly matched in a fiercely
contested market. We have dominated the value-for-money beer category through our brands:
Eagle Lager and
Eagle
Extra, and the mainstream strong beer category with
Nile Special. Our competitor
has dominated the mainstream mild beer category through Bell Lager, but our own Club Pilsener is a strong challenger. Uganda Breweries is
also a longer established player in the smaller premium beer category, but we
have strengthened our position in this arena with the launch this year of
Castle
Lager & Redd’s Premium Cold in one-way 330ml bottles.
RP:
What do people love about your products?
MD: Feedback from consumers in research suggests our brands are admired for their
taste and flavour consistency, no matter what time of year, and what location.
Secondly, they appreciate the fact that we try to keep our brands relevant in a
changing society. Our brands move with the time, and out consumers.
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RP:What about the awards? What is the secret in Nile
Special that helps it keep winning global awards?
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MD:Nile Special is a truly rewarding beer with a full body and
rich flavour, brewed at the source of the River Nile. Being part of a global giant called
SABMiller has greatly helped to give us deep insight into what “world class” truly means.
This is all because we have access to world class standards. Nile Special is as
good a beer as you can find – in any country in the world. |
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RP:What other brands has Nile
Breweries started, to make its beer accessible to the majority of Ugandans?
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MD: In 2002, Eagle Lager was launched. This was brewed from indigenous sorghum and
as a result, attracts lower taxes. This saving has been passed directly onto the
consumer, who can now enjoy a high quality bee at an affordable price.
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| In 2004, Eagle Extra was launched, and has been Uganda ’s most popular beer for two successive years. Many consumers are enjoying a standard, hygienic ‘clear beer’ for the first time ever. |
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RP:What is your commitment to keeping your product available at all times?
MD: We have invested approximately $6 million in the past year in new equipment and
containers. This is to achieve both quality and capacity improvements. We also
intend to invest over $10 million next year to further enhance out capacity and
quality.
RP:Do we have enough beer in stock for this season?
MD:As for this peak season, we have sufficient beer available but our challenge
will be ensuring sufficient containers. Everyone is aware of the huge volumes of
beer crossing into Southern Sudan which is creating a shortage of containers in Uganda. But rest assured, our customers will have sufficient beer this Christmas.
RP:What impact on the rural economy has been made by such brands as Eagle Lager and
Eagle Extra?
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MD:The impact has been very significant. Direct income for farmers and their
families has risen from Ush 440 million in 2003, to over Ush 2 billion in 2006.
A further Ush 1.6 billion was disbursed for industry related services
such as transport and storage this year. Over 8,000 farmers were
involved in growing sorghum on more than 10,000 acres of land in the
last season. The income for them and their families has been truly
transformational. |
| It has allowed them to supplement traditional subsistence farming with a cash crop whose market and price is assured, thereby giving them access to schools, proper medical care,
and many other facilities that would otherwise have been beyond their reach. |
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RP:Your company has been undertaking a “Drink Responsibly Campaign”. Has any progress been registered? |
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>MD:This is the start of a long journey for to encourage responsible use of our
products by our customers. In the long run, we will protect these very customers
and the general public from harm associated with the misuse of alcoholic
beverages. |
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We have been instrumental in bringing together many
other alcohol beverage producers too from the Uganda Alcohol Industry
Association, whose main objectives are self-regulation of the industry towards
the responsible marketing and consumption of alcoholic beverages, as well as a
representative body to lobby government and other stakeholders on alcohol
issues. The Uganda Alcohol Industry Association (UAIA) was officially launched
on the 28th November 2006 by the Minster of Health and seasonal
campaigns to educate the public on responsible drinking are in high gear through
print and outdoor media. |
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We have also been working closely with government and
other stakeholders on the formulation of an alcoholic policy framework for Uganda.
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RP: You are part of a multi-national beer company. Can you briefly explain your global stake?
MD: We are a subsidiary of SABMiller plc., which is a based company, listed on both the
London and Johannesburg stock exchanges. SABMiller is currently the number 2 brewer globally by volume,
and has a presence in 60 countries, spread in five continents, and brews over
200 brands. We are very proud to be part of this global player.
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RP: How has this global positioning been beneficial to your operations in Uganda?
MD: As we have said already, it has given us immediate access to world class
standards and learning. It is the best thing that could have happened for the
company, its employees and value customers.
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RP: You were named Best Employer for the years 2004 and 2005. What is your magic?
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MD: Developing and executing a consistent Human Resources Strategy contributed to
this success. Over the years, we have improved activities that contribute to our
employee value proposition so as to attract, develop and retain high calibre
employees.
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These activities include strategic people resourcing, skill
development, Human Resource policies, health care and lifestyle practices. At
the heart of our organisation, performance management drives our vision, mission
and values, translating these into strategies, plans and goals, which are used
to guide and co-ordinate team and individual performance across the business. We
regard our employees as our most important asset and our enduring advantage of
business. |
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RP:What should Ugandans expect from Nile
Breweries in the coming year?
MD:We will continue to reward our consumers with consistent world class beers, and
on this journey, endeavour to improve the quality of life of thousands of valued
sorghum farmers, their families and their communities.
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Reproduced with the kind permission of Red Pepper
Published: Monday, December 11, 2006 |
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