January 2017 | Norland International, Inc.

Month: January 2017

Norland Set to Help Craft Beer Growth in Africa

Driven by rising population, urbanization, and increasing GDP’s, the beer market in Africa is predicted to grow faster than any region in the world over the next five years.  On a year-on-year basis, beer consumption is set to achieve an increase of nearly double digits, according to BeverageDaily.com.

Multiple organizations monitoring global markets are eyeing the African beer market as the future of beer production. Multinational beer companies like AB InBev are already thriving, and the microbrew market, where small breweries and home-brewers compete, is relatively new.

Norland produces all of the brewing equipment you need. Including this Brewhouse.

Enter Norland International’s expertise in the craft beer industry. Over the last 25 years, Norland has helped many African Entrepreneurs establish themselves in the bottled water industry. Today, Norland stands ready to help burgeoning craft brewers.

Norland, through it’s sister company American Beer Equipment, has been designing, building and selling craft brewing equipment across America and around the world since 2013,” said Norland regional sales manager Daren Waters. “We already have a pipeline to and experienced team of technicians based in Africa to help install brewing equipment.”

A Growing Trend

Due to the expanding, African middle-class with disposable income, craft breweries are beginning to grow in popularity as products become more main-stream. As access to modern infrastructure improves and with a burgeoning middle class across Africa, the demand for craft beer is increasing at unprecedented levels.

Demographically, Africa is a major emerging market. It is projected that by 2025, one-fifth of the world’s population will be in Africa, coupled with the highest urbanization and GDP growth rates in the world. These demographics have enabled the African beer market to have the fastest predicted growth rate of any beer market in the world between 2015 and 2020. Market analytics magazine World Finance points out that as the middle class grows, craft beer could be the driver of the market, as a upper end “status symbol.”

“Craft Beer’s popularity has exploded because you can appeal to hyper-local tastes,” Waters said. “If a certain flavor or style is popular in your area it is a lot more economical for a local craft brewer to produce it than one of the larger International beer brands that take a ‘one size fits all’ approach.”

As the saying goes, the early bird gets the worm. With AB InBev ingraining itself in the African beer market through the acquisition of local breweries, the up-and-coming consumer base of middle-class Africans is likely to feed these big players and consolidate the market around their growing monopoly. Africans have shown a preference for homebrewed beer or different alcoholic beverages entirely. Only time will tell if industry giants will consume this new African market, or if local microbreweries will take control, as is happening across Europe and the U.S.

Case In Point

Formerly just for the hipster set, craft beers are taking South Africa by storm, writes Justin Brown of City Press.

The value of local craft beer sales could double over the next year to as much as $1 billion due to changing consumer tastes and boredom with mass-produced lager, said Jason Cedarmore, the owner of Craft Liquor Merchants, recently reports.

Cedarmore, who represents craft beer makers such as Jack Black, Cape Brewing Company and Darling Brew, estimated that local craft beer production stood at between 8-10 million litres, and that the average retail value of craft beer was $50 per litre – so 10 million litres could generate $500 million in sales. In 12 months, Cedarmore expects local craft beer production to more than double, to 20 million litres.

Using a canning or bottling line to package your product can greatly boost profitability.

“The craft beer market is strong, and Craft Liquor Merchants is experiencing strong growth every month. There has been a massive shift in interest. Tastes are changing in the market,” said Cedarmore.

Kevin Wood, owner of Darling Brew in Cape Town, said he was also expecting local craft beer output to more than double in the year ahead. Darling Brew last year spent $52 million on building a brewery so that it could meet growing local demand for craft beer, he added.

There was massive scope for growth in craft beer because the footprint for the production was “tiny”, said Wood. There was a lot of investment being made in the sector to meet growing craft beer demand, he added.

On the other hand…

On the other hand, Standard Bank is forecasting that the local craft beer market will grow by 35% this year, on top of 30% last year. Craft breweries could produce as much as 18 million litres by 2017, to give it a 2.1% share of the total premium and light market of about 790 million litres – from just 0.3% in 2011, Standard Bank reported.

In the US, craft beer makes up 14% of the beer market and has experienced a 20% growth rate since 2012, according to Standard Bank.

Brendan Watcham, the owner of Copper Lake Breweries, said when he started his craft brewery in Lanseria near Johannesburg in 2010 there were between five to 10 microbreweries in South Africa, but that has now grown to more than 150. Copper Lake, which employs 40 people, is selling its beers to 300 outlets in South Africa – mainly in Cape Town, Johannesburg and Durban. “We are growing all the time,” said Watcham. “Our orders have shot up by about 600% over the past year. There is a lot of interest in artisanal beer. “It is a fantastic industry to be in – it is a lot of fun. I love beer. Copper Lake would like to be a big role player.”

Copper Lake opened its first brewpub in Broadacres in Johannesburg in February last year to showcase its eight beers, and is looking at opening other brewpubs in Lynnwood in Pretoria this year. It’s also looking at opening brewpubs in Cape Town, Soweto and Sandton. Watcham said the explosion in local craft beer followed the craft beer trend in the US. Grundlingh said the move to craft beer was not quite a “beer revolution”, but it was going to shake the market up and create massive opportunities for savvy businesses and investors.

Cedarmore said craft beer was catching on, as different styles of beer; in particular ales instead of lagers, which have long dominated in South Africa, were entering the market. Ales are usually described as “robust, hearty and fruity”, while lagers are characteristically “smooth, elegant, crisp and clean”.

“For more than 100 years, one brewer – SABMiller – has dominated the local beer market. It has been a sterile, stagnant, one-dimensional market. Production has been dominated by big corporate manufacturing of beer. Now the guys are starting to brew beer in their back yards and garages. Each beer has a personality, a story. With a craft beer, you can speak to the owner of the craft beer.”

‘Four or five years ago, craft beer was just for the hipsters, but these days its target market has expanded, he said. “The target market for craft beer is people aged from 25 to 40,” said Cedarmore.

If you are looking to get into this exciting business opportunity, Norland  and A.B.E. can outfit you with every piece of equipment you need. For more information, contact Daren Waters.

 

Introducing Prince Paul Ikonne
The importance of quality bottled water

In America, we often take safe drinking water for granted. We turn the tap on in the kitchen, and water is there. We don’t have to worry about if it will be there, or what might be in it.

But there is a different reality in Africa. According to a 2010 World Health Organization (WHO) report, only 51.5 percent of residents in Nigeria have access to “improved technologies” such as piped water, boreholes, tube wells, protected dug wells and tankers and/or vendors. Everyone else gets their water from ponds, streams, rainwater and unprotected wells.

Additionally, the WHO report stated 70 percent of the country’s residents had some level of sanitary risk when it came to public water.

“In addition, only 77 percent of all water supplies nationally were in compliance with the WHO guideline value for thermotolerant coliforms and only four percent of the samples tested had adequate levels of free chlorine. Together, these results raise serious concerns about the quality of water supplied by public agencies, which underscores the need to put in place national water quality standards, backed by an effective enforcement agency.”

Such findings have led a number of entrepreneurs to start their own water-bottling operations across the country.

Finding a partner in Norland

“We started our water business because of the need for good and quality water,” said Prince Paul Ikonne, of Nigeria. “There is an increasing knowledge about the current state of the water quality in our country and how it can impact people’s health.”

Ikonne, who heads the Davaus Group, found Norland International through a Google search and was quickly impressed with what the company could bring to the table.

“We decided to purchase from Norland because of the total package Norland offers for water equipment,” Ikonne said. “It is my belief American water equipment is sound and reliable.”

Indeed, the Davaus group purchased all of the equipment they would need to begin operating a bottle water facility, from a 1,500 gallon per day reverse osmosis system, the DSOZ10 Ozone System with Contact tank, to the SpectraPak 1200 bottling line.

The results quickly spoke for themselves.

“The use of Norland equipment has put our water ahead of any other water in our immediate environment,” Ikonne said.

In fact, Ikonne was so impressed with Norland International’s equipment, he made a pitch to have Norland International establish a permanent presence in the country.

“We suggest that Norland should open a distribution outlet here in Nigeria for easier access to spare parts when needed,” Ikonne said.

More than water…

Bottled water continues to be one of the best-selling beverages worldwide by volume, but you might be missing out on other growth opportunities.

Norland has long met your bottled water equipment needs, from pre-treatment through packaging, but did you know our equipment can also be used for other beverages.

Canning Line

Juices, cold brew coffees, sodas, beer, if you are looking to commercially sell a beverage, Norland has the equipment to package your product.

“People ask me all the time if we have beer equipment,” said Norland regional sales manager Daren Waters. “I confidently tell them not only do we have everything from brewhouses to canning lines, but we also have the engineering staff to customize the equipment to their needs, the technical staff to help them layout the equipment in their facility, and the installation crew to hook everything up once it arrives. Norland covers everything from A to Z.”

Even if you just want to produce and sell other beverages from coffee to juice, Norland can help you with that as well.

Brewhouses

“Our gravity feed bottle fillers can put just about anything into your PET bottle,” said Norland salesman Todd Liberty. “If you would rather can or package in glass bottles, we have a solution for you. Do you need a high speed solution, whatever you’re looking for, we have the answer.”

Quality Engineering

Norland’s team of engineers design and test all of our equipment right in our Lincoln, Nebraska facility. They are constantly striving to improve and enhance Norland’s existing equipment, as well as peer into the future and design tomorrow’s products today.

Install Technicians

“We have a great rapport with our customers and we listen to what they have to say,” said engineering manager Michael Head. “That gives us insights into what they want, then we head to the drawing board to design it.”

Quality Construction

Everything is built or quality tested right here in Lincoln. Norland’s crew of highly skilled craftsman turn their years of experience in metal working, welding, machining and wiring into the

machines that have become famous around the world in the water industry. Today, they are expanding those skills to building additional machines for other beverages.

Committed to your success

Norland’s motto is, “Whatever it takes.” That means we set you up for success during the design and build stages of your equipment. It means our staff is here to assist you long after the point of sale. It means we will do whatever it takes for to give you top quality equipment at reasonable prices that we stand behind. Because when you succeed, Norland succeeds.

LOOKING TO REQUEST A QUOTE ON OUR PRODUCTS?

Feel free to contact us via email or telephone and a representative will respond to your request.

error: Content is protected !!
Loading...