BGI Plans Expansion, Merge Subsidiaries in Bid to Reclaim Market Leadership from Rival Heineken

Dec 25 , 2023

BGI Ethiopia, one of the country's top brewers, has announced an aggressive five-year expansion plan, aiming to consolidate its four subsidiaries - Meta Abo, Zebidar, Raya, and Castel - into a single corporate entity under BGI. The strategy, spearheaded by the new CEO, Herve Milhade, is designed to challenge Heineken's current market dominance. The ambitious overhaul signals BGI executives' resolve to reclaim the top position in the brewing industry. The CEO disclosed that the expansion includes doubling BGI's annual production capacity to 10 million hectolitres by the end of 2028. The first phase will see Meta Abo liquidated within a year and relocating BGI's plant in Addis Abeba to Sebeta town in Sheger City and Maichew town in the Tigray Regional State, with both relocations completed in approximately 18 months. During a media briefing at the Sheraton Addis last week, Milhade outlined his vision for BGI, emphasising the importance of his restructuring plan in the company's growth trajectory. However, these changes have stirred concerns among BGI's 5,500-strong workforce, comprising both full-time and contract employees. The CEO assured that the company would focus on expanding its sales network and recruiting new talent post-relocation, offering significantly higher compensation packages to those unable to continue with BGI.