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International, Highly Commended

SAB Miller plc - Eagle Lager Project - Uganda

Oracle International Award 2005 in association with the International Business Leaders Forum and the Commission for Africa

SABMiller is a large brewing company, 31% of their work force is based in Africa. The Eagle Lager project provides Ugandans with an affordable and healthy quality beer made from a locally-produced primary raw material such as sorghum.

Processes

The Eagle Lager project is a public-private sector partnership between SABMiller and the Ugandan government. The project encourages responsible alcohol consumption, engagement with and investment in local communities and agricultural development.

The project was developed to respond to the very specific characteristics of the Ugandan alcohol market. 60% of Ugandans live on less than US$1 per day. They cannot afford alcohol from the formal market. Many communities therefore make their own crude unrefined alcohol which is high in alcoholic content and unhealthy.

The objectives were to stimulate agricultural research and development into the use of sorghum for brewing and create a permanent and stable market for local sorghum farmers who would be contracted to Nile Breweries which would replace expensive imported brewing ingredients and enable the company to apply for lower excise tax rates.

A recent evaluation of the project with local government representatives in the Sorote District of Uganda has confirmed that it has contributed directly to the Ugandan government’s Poverty Eradication Action Plan (PEAP) which is aligned with the poverty alleviation objectives of the Millennium Development Goals.

The Eagle Lager project demonstrates the benefits of approaching development issues from a commercial perspective and clearly shows the central role the private sector can play in assisting African countries reach the targets set out in the Millennium Development Goals.

Impact

Four years later, the beer is now Nile Brewery’s top brand with a market share of around 20%

The use of sorghum has created a permanent and stable market for 3500 local Ugandan farmers who have contracts to grow the sorghum. As demand increases it is expected that output will increase to 3000 tonnes per year creating more jobs and wealth for Uganda farmers

The business benefits of the Eagle Lager project for SABMiller have been significant. It has resulted in increased sales and improved profitability with Eagle Lager becoming Nile Breweries’ top-selling Ugandan brand with over 20% of the country’s market share