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HEINEKEN SUBSIDIARY in Rwanda, Bralirwa Ltd, is set for a change at the top when Jonathan Hall takes up the managing director slot on January 16, 2012 from Sven-Erik Piederiet who joins food processing firm Salentein Argentina as chief executive.
Heineken International, a Dutch brewing company has a controlling 75 per cent in Bralirwa with the rest of the shares held by the public after the initial public offering at the end of 2010.
Bralirwa chairman Jean-Paul van Hollebeke said of Mr Piederiet: “Under his strong leadership he has significantly improved Bralirwa’s performance and substantially increased shareholder value.”
High profile
Piederiet has been managing director of Bralirwa since June 2011, when his role changed from that of general manager, a post he took up in January 2009 after serving as finance director from 2007.
From 2007, Bralirwa’s net earnings have jumped almost threefold from Rwf2.7 billion ($4.6 million) to Rwf 10.3 billion (about $18.7 million).
Industry analysts say Mr Hall’s major challenge will be to maintain the company’s blue chip status and its current estimated 94 per cent market share.
Bralirwa Ltd’s monopoly as the sole soft drinks and beer maker came to an end in 2007 when the East African Breweries Ltd formally entered the Rwandan market steadily posing formidable competition.
Bralirwa has maintained its profitability and market share with the brewery generating $17.5 million in cash from its operations in its half year to June 2011 — a 45 per cent rise compared to the same period to June 2010.
Tough times ahead
However, with the increasing competition coupled with rising cost of inputs as seen this year, analysts expect Bralirwa’s performance to be affected in 2012. Risks are mostly linked to the cost of inputs across the globe particularly wheat and barley which have been on the rise.
Bralirwa products are largely exported to DRC while fewer quantities are exported to Burundi and Uganda.
Mr Hall will arrive in Rwanda from St Lucia, where he has been managing director of Heineken-owned Windward and Leeward Brewery. He has held senior management positions across Heineken’s business in Asia-Pacific and Western Europe.
In June, Bralirwa increased beer prices for its household drinks Primus (72cl) and Mutzig (65cl) by 16.6 per cent and 5.8 per cent respectively, citing increased input and business costs for the company.
The price of Primus (72cl) was increased to Rwf 700 ($1.180) from Rwf600 ($1.011) while the price of Mutzig (65cl) was increased to Rwf900 ($1.511) from Rwf850 ($1.42).
While analysts expect the company to maintain its market lead and growth, increasing prices of mainly its inputs such as wheat and barley are emerging threats to the profit margin.
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