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Yahoo
10-03-2025
- Business
- Yahoo
Heineken announces South Africa supply tie-up with Soufflet Malt
Heineken has entered into a commercial partnership with French malting group Soufflet Malt to supply malt for its South African operations. Under the agreement, Soufflet Malt will invest €100m in a new malt production facility in South Africa, set to produce nearly 100,000 tonnes a year. Slated to be operational by the middle of 2027, the factory will be situated next to Heineken's Sedibeng Brewery near Johannesburg, enabling malt to be transported directly via a conveyor system, cutting emissions and costs. In a statement, Heineken said the new site will be the 'most technologically advanced malthouse in South Africa". It will emit '50% fewer emissions than the industry average by using trigeneration and solar energy", the business added. The facility is expected to generate 55 full-time jobs and support over 200 South African barley growers. Jordi Borrut, managing director of the company's South African business Heineken Beverages said Soufflet Malt's cash injection 'marks a monumental commitment to South Africa'. Borrut added: 'Our focus is on intensifying our support for local production, local sourcing, and job creation. This project is a clear testament to these objectives and aligns with our 'Brew a Better World' agenda, underpinned by sustainable practices and supporting the communities in which we operate.' Soufflet Malt EMEA president Guillaume Couture said: 'Our collaboration with Heineken Beverages marks an exciting chapter for Soufflet Malt to further strengthen the South African malt supply chain. 'We look forward to deepening our partnership with local farmers, fostering the development of sustainable barley farming across the country and contributing to the long-term prosperity of South Africa through this initiative.' Soufflet Malt operates 41 malting plants across 20 countries in Europe, Asia, Africa, Australia, and South America. With an annual production capacity of 3.7 million tonnes, the company supplies malt to large breweries, craft brewers and distillers. Heineken expanded its presence in South Africa by establishing Heineken Beverages in 2023 following the merger of Heineken South Africa, Distell, and Namibia Breweries. Later that year, the Amstel brewer announced major capital investment in South Africa to build a brewery and a maltery. The group's South African portfolio includes the brands Savanna Premium Cider, Amarula Cream Liqueur, Bain's Whisky, Nederburg wines, and of course, Heineken beers. For the year 2024, Heineken reported a 1.2% drop in revenue to €35.9bn, while net profit reached €978m, a 57.6% decrease compared to the previous year. Meanwhile, the group's Africa and Middle East net revenue (beia) reached €4.1bn, accounting for 13.5% of the group's total revenue in 2024. Last month, Heineken's operations in DR Congo in central Africa were disrupted as M23 rebel conflict escalated in the east, affecting its facilities in Bukavu and Goma. "Heineken announces South Africa supply tie-up with Soufflet Malt" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.


Reuters
07-03-2025
- Business
- Reuters
Soufflet Malt partners with Heineken on $108 million South African factory
JOHANNESBURG, March 7 (Reuters) - Soufflet Malt and Heineken ( opens new tab have entered into a commercial partnership in which the French grain group will invest 100 million euros ($108.51 million) to build a new malting factory in South Africa to supply malt to the Dutch brewer. The malt factory, which is Souffle's second in Africa, will be located next to Heineken's Sedibeng Brewery near Johannesburg, and is set to be operational by mid-2027. The partnership "means replacing 4,500 containers of barley coming from abroad for local barley from local shops, making sure that we got a shorter supply chain," Heineken Managing Director Jordi Borrut said at the signing event. Right now, Heineken imports all of its barley for its South African operations. Soufflet Malt, one of the world's largest malt makers, will source 100% of the barley locally from South African commercial and small scale farmers and will supply malt to Heineken's operations in the country, Jeremy Antier the managing director of Soufflet South Africa said at the same event. With a production capacity of nearly 100,000 tonnes, the facility will create 55 full-time jobs and support over 200 local South African barley growers, Jeremy said. Jordi said the partnership also forms part of its merger commitments with wine and cider maker Distell to procure key inputs from local suppliers, producers and farmers. ($1 = 0.9216 euros)