Overview of SABMiller Africa
In 2015, SABMiller Africa stood as a colossus in the continent’s brewing landscape. With extensive operations spanning 19 countries and contributing approximately $3.7 billion in revenue – around 14% of the group’s total – the division was home to 21,000 employees. It was a period of strong growth, fueled by increasing beer consumption in emerging markets across key countries including South Africa (SAB Limited, its largest market), Tanzania, Zambia, Mozambique, Uganda (Nile Breweries), and a strategic focus on expanding in Nigeria.
Beyond its considerable scale, SABMiller was globally recognized for its leadership in operational efficiency, cost optimisation, supply chain excellence, and capability building, adeptly applying best practices to its operations. The strategic focus on Africa was underpinned by the region’s potential for growth, driven by a young population, rising incomes, and rapid urbanization. The company successfully targeted the growing market of lower-income consumers by offering affordable beer consumer electronics and innovating with options like cassava-based beers, which offered cost advantages. Furthermore, SABMiller demonstrated a strong commitment to sustainability through initiatives focused on water conservation, promoting local sourcing of raw materials, and supporting community development. This position of strength and growth culminated in its acquisition by Anheuser-Busch InBev in 2016.
CCI-GrowthCon as a strategic partner to SABMiller Africa
In 2007, the performance of SABMiller Africa’s 26 breweries lagged behind many of their international counterparts. Recognizing this, and with a clear focus on building robust local capability to manage the breweries domestically, SABMiller Africa sought to rapidly implement their globally recognized “Manufacturing Way” principles to drive improvement.
Mark Bowman, SABMiller (Africa) Managing Director at the time, articulated the strategic imperative, stating, “we believe that by focusing on sustainable growth, investing in our people, and understanding the needs of our consumers, we can continue to build a successful and responsible business in Africa.”
This ambition marked the beginning of a strategic partnership with CCI-GrowthCon. The formal implementation of the Manufacturing Way was launched at the MD’s conference in April 2008, with the first three plants commencing work practice implementation in August 2008. CCI-GrowthCon was instrumental in supporting the systematic rollout, integrating the program into three “new” plants every six months, eventually leading to all 26 beer and carbonated soft drink plants in Africa actively implementing the Manufacturing Way.
The period between 2008 and 2012 was dedicated to intensive capability building through leadership alignment, goal deployment, and work practice implementation. To facilitate this transformation and drive change management, three additional resources were embedded within each plant. The core principles guiding the rollout included achieving alignment and buy-in from all stakeholders through intensive discussions and debates on the Manufacturing Way and its implementation plans for Africa.
Organizational Design Workshops were critical, held to discuss and debate design principles and develop realistic end-state structures for each operation. Following these, detailed implementation plans and communication/change management strategies were developed. A comprehensive approach included in-depth employee talent audits at each plant to assess current employees for suitability and development potential within these new structures. These audits also provided valuable insights to inform a more realistic rollout plan tailored to the specific context of each country.
A strong joint partnership between the manufacturing and HR functions was key to re-establishing and reinvigorating the organizational competence and capability program and its enablers in each country. This involved providing refresher training on performance management, competency acquisition, and change management. A Learning and Development framework was also initiated to enhance core technical competence in key business areas.
By 2012, the dedication to the Manufacturing Way began yielding tangible improvements. Excellent results were observed in machine efficiency, with the first six breweries achieving 85%. There were also significant reductions in water and energy usage and improved cost management across implementing plants.
The lasting impact of the Manufacturing Way initiative and the strategic partnership with CCI-GrowthCon was clearly demonstrated by the time SABMiller was acquired by ABInBev in 2016. At this point, Africa boasted two breweries ranked among the Top 15 best in the world, with Uganda and Tanzania recognized for their leadership and excellence in applying the Manufacturing Way. Nile Breweries in Uganda, a testament to the program’s effectiveness, surged from 35th to 4th position out of 120 breweries in the SABMiller global portfolio. Across Africa, the program delivered an average 9.2% increase in line efficiency across 44 lines and a significant 15% reduction in water and energy usage.
The implementation of foundational Work Practices in each country followed a structured four-phase plan led by CCI-GrowthCon:
Phase 1: Assessment
Phase 2: Planning and Awareness
Phase 3: Pilot Implementation
Phase 4: Roll out.
This comprehensive journey, from identifying the need for performance improvement to the systematic implementation of world-class manufacturing principles with a strategic partner, illustrates SABMiller Africa’s successful drive towards operational excellence and capability building across the continent.