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Nile Breweries acquires Rwenzori Beverages

By Vision Reporter

Added 18th February 2010 03:00 AM

MARKET INTELLIGENCE

SABMiller, through its subsidiary Nile Breweries, has bought mineral water bottler, Rwenzori Beverages, an official has said.

MARKET INTELLIGENCE

SABMiller, through its subsidiary Nile Breweries, has bought mineral water bottler, Rwenzori Beverages, an official has said.

MARKET INTELLIGENCE

By James Odomel

SABMiller, through its subsidiary Nile Breweries, has bought mineral water bottler, Rwenzori Beverages, an official has said.

Nick Jenkinson, the Nile Breweries managing director, said the Rwenzori bottled water business would be complimentary to SABMiller’s beer business in Uganda.

“This acquisition is in line with the company’s Africa strategy of building full beverage portfolios,” he said.

It was not clear how much the brewer paid for the leading bottled water firm.

However, an industry source intimated that the deal was above $18m.

The company boosts of about 70% share of the bottled water market in Uganda and also sells water in the Democratic Republic of Congo and Tanzania.

It produces 1.2 million hectolitres annually.

“The new company will trade as Rwenzori Bottling Company Limited and will continue to be managed as a stand-alone business,” he added.

Rwenzori had sales of about $18m in its latest financial year, he said.

Recently, Mark Bowman, the head of SABMiller, said they had bought water operations in Ghana, Nigeria and Ethiopia to take advantage of the market for safe drinking water in Africa.

Water business in Uganda is seen as profitable and has attracted about 13 companies over the past five years or so.

Soft drink manufacturers, Pepsi-Cola and Century Bottling Company, makers of Coca-Cola products, have also jumped into the fray to have a share of the lucrative business.

Pepsi produces the Peak mineral water brand, while its competitor has Dasani water made from its Tanzanian factory.

Nile Breweries acquires Rwenzori Beverages

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