South African Breweries (SAB) used the annual State of the Beer Economy event, held at its agriculture research and development centre in Caledon, Western Cape, to showcase its significant impact on the agricultural economy.
Attended by the Minister of Agriculture, John Steenhuisen, the event provided an in-depth examination of the beer sector’s shared value and its pivotal role in fostering economic growth.
SAB’s CEO, Richard Rivett-Carnac, emphasised the importance of the beer industry to South Africa’s agricultural economy. “At SAB, we pride ourselves on making beer that is local, natural and inclusive, relying on a thriving agricultural sector,” he said, adding that SAB sources 95% of its raw materials locally.
“Beer is not just a beverage of moderation, it’s a critical driver of economic growth. By empowering our value chain, including commercial and small-scale farmers, we are not only strengthening our supply chain but also investing in South Africa’s future through our agricultural impact,” said Rivett-Carnac.
Steenhuisen applauded SAB for its strong partnership with the farming community and its commitment to inclusivity. “SAB plays a vital role in agricultural development, given how essential crops are to brewing beer,” he said.
“SAB’s investment in local farmers, particularly emerging farmers, directly influences our ability to deliver impressive harvests year after year. Beyond crops, this investment has been crucial in job creation, economic growth, and building a more sustainable future for our nation.”
The beer sector supports 38 000 households in the agricultural industry, demonstrating its integral role in localising production and growing the sector. Major beer producers such as SAB are key enablers of economic transformation, fostering growth and development throughout the agricultural value chain.
SAB’s emphasis on local sourcing has led to notable achievements:
- Barley production: Since 2017, local barley production has increased by 60%, with 324 000 tonnes produced in 2023. This growth has contributed R1,4 billion to GDP across the Western Cape, Northern Cape, North West and Limpopo.
- Hop cultivation: SAB has developed nine hop varieties for local and international markets, with 409 hectares cultivated in the George region of the Western Cape.
- Non-GMO maize: SAB sources 230 000 tonnes of locally farmed non-GMO maize for beer production, contributing R754 million to GDP.
These figures underline SAB’s strategic investment in local agriculture and its substantial economic contributions.
SAB has also invested in expanding its commercial barley malting facilities in Alrode and Caledon and its hop processing facility in George. These facilities cater to local and regional markets, supporting SAB’s mission to localise its supply chain.
Additionally, the Caledon research and development centre is piloting new farming techniques, technologies and crop varieties, accelerating agricultural innovation and providing support to farmers across South Africa.
Aron Kole, managing director of FarmSol Holdings, highlighted the critical role of partnerships between SAB and the agricultural sector. “Partnering with major beer producers like SAB is essential to driving transformation in South Africa’s agriculture,” he said.
“Through these collaborations, we help developing farmers supply high-quality raw materials to the industry and assist in developing these farmers into sustainable, future-ready enterprises. This partnership improves farmers’ yields and access to commercial supply chains, while enabling the food and beverage sectors to source premium-quality materials from a diverse network of local farmers.”
SAB has redefined what a beer company can be, anchored in a powerful brand purpose: “We dream big to create a future with more cheers”. For SAB, it’s always about more than the beer; the company is driven by its passion to demonstrate the unique power of beer in propelling South Africa forward.
Since its inception over a century ago, SAB has grown to become South Africa’s largest brewer, a powerful economic contributor, a leader in sustainability and a champion of responsible consumption.
The company operates seven breweries and 42 depots in South Africa, employing about 5 000 people and supporting a beer economy that encompasses more than 250 000 jobs. Its portfolio includes leading brands such as Castle Lager, Carling Black Label, Corona, Brutal Fruit, Stella Artois and Flying Fish, catering to a wide range of consumer preferences.
SAB’s commitment to supporting the agricultural sector from “seed to sip” continues to shape the future of the beer industry and the broader economy.
