CHAPTER ONE
1.0 INTRODUCTION:
1.1 HISTORICAL BACKGROUND OF NIGERIAN BREWERIES:
Nigerian Breweries Plc was founded in 1946 and since then has matured to become the absolute pinnacle of corporate Nigeria. Today, Nigerian Breweries most recent extension, the new Ama Brewery, has taken the company into a new chapter in its history. Nigerian Breweries: more than half a century of efforts to achieve world class status in Africa. Over a period of slightly more than fifty (50) years, Nigerian Breweries has had success after success and has succeeded in anchoring itself firmly in the Nigerian beer market, the business community and indeed in the very hearts of Nigerian themselves. The “Rising Star” or Nigerian Breweries has, for many decades now, been synonymous with success, quality and commitment. The organization can boast a wide portfolio of brands that cover the three segments of the Nigerian beer market (Larger, Stout and Malt): Star, Gulder, Heineken, Legan Extra Stout, Maltina, and Amstel malta. In 1949, three years aer its foundation, the first bottles of star were being filled on the bottling line of the brand new brewery in Lagos. Three more breweries have been founded since then: Aba, Kaduna and Ibadan. Enugu brewery was acquired in 1993. For decades, Nigerian Breweries had tow large shareholders, one of which, Heineken had always focused on providing the breweries with technical support. In year 2000, Heineken seized the opportunity of acquiring a 54.2% majority interest in Nigerian Breweries, a decision which underlined Heineken’s commitment to the African continent.
Thanks to the process of democratization that started to emerge towards the close of the 1990s, plus the brewery’s alert anticipation of what would happen in the new situation. Nigerian Breweries successfully managed to accelerate a growth in sales from 2.5 million hectoliter in 1998 to 5.5 million hectoliter (hi) in 2003. This was so successful in fact that a luxury problem arose: the demand for Star, Gulder, and Maltina started to outstrip actual supply. Nigerian Breweries and Heineken therefore started up the LAKIE output optimization project (Lagos, Aba, Kaduna, Ibadan, Enugu). An investment of 280 million euros in new bottling lines and brewing plants substantially increased the capacity of these breweries. The experts were more than aware that an expansion of the existing breweries alone would be insuicient to meet the constantly increasing demand for Star and Gulder. And because of the rose-coloured prospects in the medium term, early in 2001 Nigerian Breweries and large shareholder Heineken decided to build an ultra-modern brewery fitted with the latest innovations and the most up-to-date plant equipment. A world-class brewery befitting a world-class company. The entire brewing community is envious of the new Ama brewery near Enugu. The construction of a high-tech brewery, in corporating the absolute latest in technological developments and major innovations in a rural tropical environment is a feat which has never before been achieved in the brewery industry. Nigerian Breweries assigned Heineken Technical Services to design and develop the new brewery and to supervise the construction of this 220 million euro (30 billion naira) project.