Heineken Beverages to source all malt locally with R2bn Gauteng facility

Heineken Beverages is set to source all the malt for its South African breweries locally after the start of construction on a R2bn malting facility in Midvaal, Gauteng.

The facility is being developed by international malt supplier Soufflet Malt under a long-term agreement to supply malt exclusively to Heineken’s South African operations. Once operational, expected in mid-2027, it will produce about 100,000 tonnes of malt annually, replacing about 1,700 containers of imported malt the company relies on each year.

Barley, a cereal grain used to produce malt for brewing, will be purchased from commercial and emerging South African farmers and processed at the new facility. The malt will then be transported via a conveyor directly from the Midvaal malting facility, which is located adjacent to Heineken’s Sedibeng Brewery, reducing transport and logistics costs.

Millicent Maroga, corporate affairs director at Heineken Beverages; Jeremy Antier, MD Soufflet Malt South Africa Al Bukhari Fournier, Soufflet Malt CFO; Thierry Blandinieres, Invivo Group CEO; Johan van Zyl, supply chain director at Heineken Beverages, senior manager, programme & strategic projects at Heineken Beverages; and Guillaume Couture, president of EMEA. (Supplied)

“This project reflects our approach to local sourcing and supply chain efficiency,” said Heineken MD Jordi Borrut. “By producing malt locally and integrating production next to the brewery we reduce reliance on imports and support South African farmers.”

The construction of the new facility is being managed by Abbeydale Projects, a South African construction firm.

The company said the facility is projected to create 55 permanent jobs, while hundreds more are expected to be supported indirectly across the agriculture, logistics and related sectors.

The project will involve 200-250 farms, covering 30,000ha-35,000ha and is projected to contribute about R750m to South Africa’s agricultural GDP. The company said emerging farmers will be able to access training, mentoring and financial support from the Industrial Development Corporation, including grants and interest-free loans for equipment.

Heineken Beverages was established in 2023 through the consolidation of Heineken’s South African brewing operations with Distell and Namibia Breweries. The company produces brands including Heineken, Amstel, Savanna, Windhoek, Amarula, and Nederburg. While Heineken and Amstel have been sold in South Africa for decades, the 2023 consolidation expanded the business to include wine, cider and spirits, making it one of the larger beverage groups in the region.