Beer is big business in Sierra Leone. Customer demand is booming for the output of the Sierra Leone Brewery, the nation’s leading supplier of alcoholic beverages. Something of a flagship for the industrial sector, it produces well-known drinks such as Guinness and Heineken, as well as the popular local Star brand.

After being virtually destroyed during the war, it has since undergone intensive reconstruction to regain its footing in the market. The firm now operates full-out in an attempt to keep up with the surging demand of Sierra Leone’s thirsty population.

‘Beer is a very profitable business’ Ivan Carrol

“It’s amazing what happens to a country after war, considering what we went through,” says Ivan Carrol, the brewery’s Managing Director. “Within a short period of time the demand for our products really went up – at this point we are at 100 per cent capacity.”

There are plans to raise production further in order to keep up with demand. These include the replacement of the plant’s bottling line, which is expected to double output by next year. It also means taking on more staff. The company currently employs more than 130 people, mostly locals. Much of the extra production capacity is anticipated to be absorbed by the domestic market, although long-term there could be opportunities for exports to neighbouring states.

The management team is confident that the strength of the home market justifies the additional investment. Prior to the war, the business was operating at just 35 per cent capacity. “If we could increase our production by 20-25 per cent, we could sell that extra beer here,” says Mr Carrol.

Last year was something of a milestone for the Sierra Leone Brewery, which celebrated its 40th anniversary. The story began after the successful completion of feasibility studies in 1957 into the possibility of establishing a local brewery by the United Africa Company and Heineken. The colonial government and the main importers of beer into the country at the time were supportive of the idea.

Construction work was finally completed in 1962 and the company became a key contributor to the national economy, submitting some £5,000 in duties to the government after only its first month.

Today the company is a thoroughly modern enterprise with a transparent structure and state-of-the-art production equipment

Today, the company – whose principal shareholders now include Guinness and Heineken – is a modern enterprise with transparent management and state-of-the-art production equipment imported mainly from Europe. Other shareholders include Peterson Zochoubis, a Greek company with an established presence in Freetown, while around 11 per cent remains in the hands of small Sierra Leonean investors. There is a satellite communications link with Heineken in the Netherlands and an ongoing flow of information between the two continents.

Mr Carrol believes that the total reconstruction of the plant since the war underlines the level of confidence among investors in the brewery and the country. “The re-establishment of the Sierra Leone Brewery is good for the health and spirit of the nation.”

The company has resumed the payment of duties to the government and dividends to its shareholders. But he says it is vital to maintain this level of confidence, which means capitalising on the current high and rising demand, since greater volumes mean greater profits.
“The beer business is a very profitable business, that’s for sure. The more you sell, the more you make, so no matter what the volumes are, the bottom line is that any natural increase automatically gives us an increase in profit.”

Production is being increased to keep up with popular demand

The brewery has a focused management team and a committed and motivated staff. Managers attend the Heineken University, while even the workers are sent out to Nigeria and Ghana for further training.

“We have a first-class management team, very well-trained and very proud of where we are going as a company,” says Mr Carrol. “We have a good marketing and distribution team and we are ready to supply the whole of Sierra Leone.”

The brewery has been described as one of Sierra Leone’s best-kept secrets. The Managing Director says people do not realise how well-organised and efficient the plant really is. The surging demand for beer is also a good barometer of the mood of the nation, which again bodes well for the future of the company, he believes: “There are so many more outlets selling beer – night clubs, shops, pubs, supermarkets and bars.”