NBL, partners get nod to establish SA joint venture

NAMIBIA Breweries Limited (NBL) and its international partners, Diageo and Heineken, on Friday got approval from the South African Competition Commission to form a joint venture in that country for sales, marketing and distribution businesses.

According to a joint press release at the weekend, the three companies said they were currently in negotiations to finalise the terms of their joint venture. Diageo and Heineken acquired 28,9 per cent of NBL effective from July 2003.Previously Heineken had been distributed in South Africa by South African Breweries (SAB).Namibia Breweries Chairman, Sven Thieme said: “This decision sanctions the commencement of an exciting new phase that will step up the remarkable growth of NBL’s popular premium brands in South Africa.The venture will optimise the synergistic growth potential of the partnership and is proof of our commitment to offer world-class products and service standards to South African customers and consumers.”The benefits the three expect to derive from the joint venture stem from Heineken’s extensive global and African experience and knowledge in the beer sector; Diageo’s world-wide stable of leading alcoholic brands and NBL’s established position in SA’s growing premium beer segment, the statement said.NBL intend to accelerate its expansion on the African continent as part of its growth strategy.A combined business of this nature holds the potential to bring change to the landscape of the South African market in the beverage sector, according to the statement.Diageo’s managing director for Africa, David Hampshire said: “We are delighted to be given the go ahead with this new venture, which creates a strong portfolio of premium brands and brings together some of the best talent in the industry.Our business model provides an excellent platform for growth and will deliver operational and distribution synergies to all three partners.””A lot of hard work has been done over the past year resulting in a great team spirit, which will be the basis of success of this joint venture.I am convinced that the Heineken brand will benefit tremendously from the distribution platform and the sales expertise the joint venture provides,” said Thomas de Man, Heineken’s managing director for Africa.Diageo and Heineken acquired 28,9 per cent of NBL effective from July 2003.Previously Heineken had been distributed in South Africa by South African Breweries (SAB).Namibia Breweries Chairman, Sven Thieme said: “This decision sanctions the commencement of an exciting new phase that will step up the remarkable growth of NBL’s popular premium brands in South Africa.The venture will optimise the synergistic growth potential of the partnership and is proof of our commitment to offer world-class products and service standards to South African customers and consumers.”The benefits the three expect to derive from the joint venture stem from Heineken’s extensive global and African experience and knowledge in the beer sector; Diageo’s world-wide stable of leading alcoholic brands and NBL’s established position in SA’s growing premium beer segment, the statement said.NBL intend to accelerate its expansion on the African continent as part of its growth strategy.A combined business of this nature holds the potential to bring change to the landscape of the South African market in the beverage sector, according to the statement.Diageo’s managing director for Africa, David Hampshire said: “We are delighted to be given the go ahead with this new venture, which creates a strong portfolio of premium brands and brings together some of the best talent in the industry.Our business model provides an excellent platform for growth and will deliver operational and distribution synergies to all three partners.””A lot of hard work has been done over the past year resulting in a great team spirit, which will be the basis of success of this joint venture.I am convinced that the Heineken brand will benefit tremendously from the distribution platform and the sales expertise the joint venture provides,” said Thomas de Man, Heineken’s managing director for Africa.