03 Nov 2011 SABMiller launches cassava lager in Mozambique

SABMiller (SAB), one of the world’s largest brewers, has announced the launch of the first ever commercial-scale cassava-based beer, “Impala”, to be made by its local subsidiary, Cervejas de Moçambique (CDM), and marks the latest step in SABMiller’s ambition to create a portfolio of high-quality, affordable beers made using locally-sourced raw materials for lower income consumers in Africa.

At an approximate cost of between US$500,000 to $600,000 to set up, Impala is brewed using 70% cassava and is the result of several years of research to overcome the challenges of processing and brewing with cassava, which grows widely across Africa.

Mozambican farmers potentially produced more than enough cassava than was required for domestic consumption, but the surplus had never previously been used to brew beer because of the logistical challenge of collecting the roots from smallholder farmers who were widely dispersed, along with its rapid deterioration immediately after harvesting, the brewer notes.

SABMiller partnered with DADTCO (Dutch Agricultural Development and Trading Company), which pioneered an innovative solution in the form of a mobile processing unit (AMPU) which travelled to the cassava growing regions and processes the root in situ, preserving the integrity of the starch.

Mark Bowman, MD of SABMiller Africa, said: “We estimate that the volume of the informal, unregulated alcohol market across Africa could be up to four times that of the formal market. By using locally-sourced raw materials, we are able to create high-quality, affordable products for consumers who would otherwise be drinking informal or illicit alcohol. At the same time, Africa’s agricultural potential is enormous, but currently under-exploited. The private sector has a critical role to play – by creating market opportunities for subsistence farmers in our value chains, we are able to increase their productivity allowing them to feed their families and generate an income for the first time.”

SABMiller CEO Graham Mackay added that beer in Africa was regarded as an elite product, too expensive for many.

Peter Bolt, MD of DADTCO said: “The rural regions we are targeting are extremely poor and the farmers have previously struggled to sell more than a bag of cassava every two weeks. By creating a sustainable, vibrant market for their crops, buying from them direct and helping them to improve their yields, there is no doubt that this project will have a significant impact on their lives and the local economy.”

Approximately 40,000 tonnes of raw cassava would be used annually in the production of Impala, creating new employment for over 1,500 smallholder farmers and their families, SAB said.

DADTCO would manage the cassava production value chain and the agricultural extension services would be provided by IFDC, a public international organisation assisting farmers across Africa.

In recognition of the potential long-term contribution that the brand will make to agricultural and economic development in the country, the government of Mozambique agreed a reduced excise rate for Impala. This, along with the reduced input costs provided by the use of locally grown cassava, would enable Impala to be sold at a price point equal to 70% of mainstream lager.