Page 9 - AB INBEV 2018 Case Study 2

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1. Updated Market Forecasts For Brewery Companies in Nigeria:

Brewery companies in Nigeria Current Forecasted market share
Market
2019 2020 2021 2022 2023 and growing at
12% onwards
No. of batches of drinks produced and sold (in millions) 20 24 32 39 45
Diageo (Guinness Nigeria Plc) 21.2% 22% 22% 19% 18% 15%
Heineken (Nigerian Breweries Plc, Consolidated Breweries ) 60.5% 59% 55% 52% 49% 49%
SABMiller (Pabod Breweries, Standard Breweries, Voltic) 10.6% - - - - -
Castel (International Breweries) 5.1% 6% 6% 5% 6% 5%
AB In Bev (Newco) 0% 11% 15% 23% 26% 30%
Others 2.6% 2% 2% 1% 1% 1%
Total 100% 100% 100% 100% 100% 100%
Source: Hypothetical construction of The CharterQuest Professional Education Institute

2. HR Report For The Top Brewery Companies In Nigeria

Company name Total no. of Labour Average Profit Average Performa Average
employees in Turnover (1) salary sharing days/holida nce spend per
Nigeria (US$) scheme y/year related year per
pay employee
($S$)
Diageo (Guinness Nigeria Plc) 3850 7% 22,500 Yes 25 Yes 1,250
Heineken (Nigerian Breweries Plc, 4200 8% 23,000 Yes 23 Yes 1500
Consolidated Breweries )
SABMiller (Pabod Breweries, 4300 12% 24,000 No 20 No 1000
Standard Breweries, Voltic)
AB InBev (Global) 100 1% 26,000 Yes 19 Yes 1700
Source: Hypothetical construction of The CharterQuest Professional Education Institute

1) Labour number is the number of Brewery Process Engineers and Sales Representatives leaving in the last year as a percentage
of the number employed at the beginning of the year (Ignore data about all other staff categories).
 Brewery Process Engineers (BPEs) – BPEs are considered critical skills: they manage and execute all projects related
to brewing, packaging, and quality processes. These processes include milling, conveying, mashing, brewing,
cleaning, fermentation, kegging, bottling, labeling, canning, packaging, palletizing, and water/waste water operations;
 Sales Representatives (SRs) –SRs are also considered critical skills: they manage key B2B account relationships,
securing orders from major supermarkets, and coordinate delivery to them by interacting with production (mainly
BPEs), depots (warehouses) and distribution centers.

3. SAB Miller Exit Interviews (from survey of staff leaving SAB Miller Nigeria in the last year)
1 ‘There is no point in doing a good job, because you get paid no more than doing an ordinary one. Average 26%
work is tolerated here.’
2 ‘This is the first place I have worked where learning new skills is not encouraged. There is no incentive to 24%
improve yourself. The company seems to believe that employees who gain new skills will inevitably leave,
so they discourage learning.’
3 ‘The real problem is that the pay structure does not differentiate between good, average and poor 23%
performance. This is really de-motivating.’
4 ‘Waiting for AB InBev takeover may expand career opportunities but here, the heightened uncertainty and 27%
loss of management focus -and yet, better prospects at competitors, is simply too hard to ignore.’
Source: Hypothetical construction of The CharterQuest Professional Education Institute

The CFO Case Study Competition 2018 (Grand Finale Pack)
www.charterquest.co.za | Email: thecfo@charterquest.co.za