Brewery Business Plan

Sedibeng Breweries produces and markets several products. There are three main products currently in its production line. These are:

1. X Beer
2. Y Beer
3. Z Beer (Note: Z comes in different flavors):
   • B
   • P
   • C
   • S

All products are periodically taken for testing to the National Food Laboratory for quality checks so as to ensure that they conform to required quality standards.

3.1 Product Description

Sedibeng Breweries produces products of high quality and impeccable taste. The company currently produces three main lines of products, namely X beer, Y beer and Z beer. All three have unique properties that will enable them to excel on the market. We will also be watching for technological developments in South Africa and overseas, allowing us to be first on the market and produce high-quality products through cost effective means. In addition the company will select suitable products for production under license.

Our current product listing is as follows:

1. X Beer
   Although similar in appearance to the only other product available in the market, our beer has the superior flavour and texture, smooth, with no rough solids. This stems from (discussion removed for confidentiality).
2. Y Beer
   This refreshing drink has the unique feature that it can be enjoyed both as an alcoholic or non-alcoholic drink, depending on the fermentation period after production. If consumed fresh, that is, within the first week of production, it contains only traces of alcohol, typically even less than that found in medication (discussion removed for confidentiality).
3. Z Beer
   This traditional food product is widely consumed as a substitute for regular meals and energy booster, whenever available. Up to now it has only been available in two sources, namely home prepared or more commonly bought from a shop having a fridge to keep the product refrigerated.

This denies the people in rural area access to these delicious and nutritious foodstuffs. In fact, it is so wholesome that a growing child is able survive on one litter of this per day, as it contains protein, starches, calcium, vitamins and other essential trace elements. We have the ability to produce a long life Z that needs NO refrigeration, which can be sold from the shelf in the same fashion as Ultra Mel and similar products. This means that it can be bought by consumers who might not always have access to cooling or refrigeration facilities, to be consumed later, as a food whilst way from home, or as an emergency food supply. This is available in several flavors, such as x, y, w, t, s and other xx flavors that the market might want. It is also a good product to use in school feeding schemes and similar projects.

3.2 Competitive Comparison

Identifying competition in terms of companies that fill the same needs that we do, our competitors are few in our main product lines, though dominant in the market. Hence there will be a need to strongly differentiate ourselves from these other businesses. However on a broader scale our competition comes in several forms:

1. The most significant competition is that of XX Breweries, which is arguably the market leader. Having been on the market for a relatively long period of time added to the fact that they are backed by Y Breweries’ financial, technological and human resources acumen. They have a wide and established distribution network that they utilize to their advantage. Our key advantage in competition with XX Breweries is that we are accessible in extremely remote areas. We intend to vigorously undertake new channel and distribution development in addition to deploying aggressive marketing strategies. Also, strategic alliances shall assist in our attainment of goals and objectives.

2. Other manufacturers of traditional brews including homes and local bars will also constitute our competitors. They often have access to the local and remote areas and knowledge of these areas. However the product is not constantly of high standard, which we shall fully exploit.

3. On a larger scale manufacturers of other beverages including soft drinks and coffees also constitute competition, but of a generic nature, as people have to choose between them as refreshments. These products being marketed in supermarkets are often advertised on an extensive basis. To this end we intend to implement a strategy that will integrate the various promotional elements or tools such that our products are well known and appreciated on the market.

3.3 Macro-environment

Over the last few months abnormal weather has affected many parts of Southern Africa, including Botswana, during the key summer season. It has been extraordinarily severe with heavy rainfall, flooding and there definitely promises to be low temperatures, particularly in the winter season. This is likely to have an adverse effect on our initial financial performance, though marginal as consumption levels may decrease slightly.

At a large scale, market research demonstrates that the brewing industry market is growing and changing. Generally there is a trend toward more appealing and attractive brews as potential customers either are moving to the urban areas as a result of urbanization or are satisfied with an existing brew in their area. Research indicates that those in the rural areas are often satisfied with the existing brew due to lack of access to other higher-quality brews, whilst the new generation of executives being more educated and aware of the global environment wants to be seen drinking something attractive and recognized by others–status recognition. In addition this same market is not only more image conscious but appreciative of a quality brew as it is more selective. Therefore with the emergence of this generation of individuals, the appreciation of quality brews and packaging, dictates that our product lines will be popular.

Private sector development has been recognized as a vital ingredient in creating employment and training opportunities, and realizing the national goal of sustainable economic diversification. In addition to the country increasingly becoming a tourist destination, we foresee the demand for our products especially in the resorts and lodges where it will be promoted. Through undertaking of our professional business activities we foresee that it should not be too difficult to gain market acceptance provided we deliver the final product on time, of good quality, and at competitive prices.

3.4 Technology

Sedibeng Breweries will strive to maintain the latest and most efficient assembly technology so as to ensure quality-brewed beverages, and maintain low production costs ultimately benefiting the consumer. Keeping abreast with technological developments will ensure we gain and maintain a competitive advantage utilizing the latest production techniques.

3.5 Future Products

In putting the company together we have attempted to offer enough products to allow us to always be in demand by our customers and clients. The most important factor in developing future products is market need. Our understanding of the needs of our target market segments shall be one of our competitive advantages. It is critical to our effort to develop the right new products. We also intend to have what we call a “core product engine” that will be the foundation of future products. This shall be established in time as we determine our core product. In the future, Sedibeng Breweries will broaden its coverage by expanding into additional markets (i.e., the whole of Southern Africa) and additional product areas. In doing so we will strive to ensure that it is compatible with the existing products and assembly technology.

3.6 Fulfillment

1. The key fulfillment and delivery will be provided by the principals and values of the business. The real core value will be the provision of a thirst quenching refreshing brew, provided by a combination of quality ingredients, good production techniques, hard work, and education (in that order). Hence we intend to ensure that the products we produce are always of high quality and standards, and available to the relevant target market.

2. We will turn to reliable farmers, suppliers and distributors who will assist in ensuring that the products are delivered timely and are of the highest quality. We will also rely on these stakeholders for relevant information on the market situation (trends, consumer tastes, feelings and comments amongst other things).