Brewers Build Brands in Growing African Beer Market

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April 15 (Bloomberg) -- In today’s “Global Outlook,” Miguel Azevedo, head of Africa investment banking at Citigroup, talks with Guy Johnson about the growing market for beer in Africa on Bloomberg Television’s “The Pulse.”

We should spend more money there.

This is a africa's biggest market.

This is one of the few markets that is very big in the world.

It is still growing.

The population is growing at five percent.

Disposable income is growing at six or seven or eight percent.

I would say the same thing for can you.

They cannot make something that they are african it?

Cannot make it work for them?

Why are non-african companies have in a better footprint?

It is not easy to operate in some of these countries.

It does take time to build a presence.

They were not as fast as others.

They are catching up on the continent.

They do have a good partnership.

They are very present in other markets.

I am sure they are covering that right now.

Business travel to the rest of africa?

Does it not work that way question mark --? they have strong brands with good recognition.

The markets are very branded driven.

What you are also seeing is some of these companies bring the top brands.

They also bring local brands to sort of fight in the lower segment of the market.

They have two cards to play in the market.

You go in and buy these local brands, is that where the fight is now in africa?

To buy up these?

In asia that has been the story for the less the -- last few years.

You don't really have big local brands as of now.

They're very small.

In kenya, there is a small producer.

It is indigenous and a very small brewery.

It was a very effective brand.

She is making it out of nothing.

I can see this happening more.

I can also see these companies emitting independent, to be honest.

If we have access to the equity capital market, i can see these companies playing a role in africa.

Not at any price?

This is of the few untapped markets left in the world for the brewing industry.

There has got to be a big fight and prices will go up.

Companies are trading on the private arc it.

Those numbers are unheard of in developed markets.

Growth is the reason.

If i were an entrepreneur in africa, i would develop the brand for a few years more and get access to the market to the equity market.

I would develop the business and then when i am on the 15% market share, that is the time to cash in.

Can we develop pan african brands?

Are we going to see pan african brands being developed?

Will companies in nigeria be better at it than companies in nigeria?

Brands will travel well.

Not necessarily because they are african.

Western africa is very different from eastern africa.

In all seriousness, if you walk into the room with the ceo of sab, what with the advice be?

This is in your own backyard and you need to get a bigger footprint.

There is a scarcity of brands out there.

How do you play it?

What is the right strategy?

Who is going to do well?

The right strategy is to buy on the ground operation.

That is faster.

Right now, it will be operated in a different practice.

Sometimes brand don't want to buy a local operator.

If you want to be on the market, buying is probably the best problem.

In other markets, you don't have anybody on the ground.

You have to develop them scratch.

That is a very common feature as well.

Thank you very much.

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