Saki Zamxaka (GGCA) (from left), Jérémy Antier of Malteries Soufflet, Midvaal Mayor Peter Teixeira, Heineken Beverages Paul Stanger, Heineken Beverages managing director Jordi Borrut.
Image: Supplied
Soufflet Malt, the world’s largest malt producer, will invest R2 billion (€100 million) to build a malting facility in South Africa under a new supply agreement with Heineken Beverages, signaling a deeper push into the region’s beverage and agricultural sectors.
The facility, set to supply malt for Heineken’s local operations, will be located adjacent to the brewer’s Sedibeng plant near Johannesburg and is slated for completion by mid-2027.
The investment underscores growing confidence in South Africa’s agribusiness potential amid a global surge in demand for beer and malt-based products.
Heineken Beverages, which oversees a portfolio including Heineken, Savanna, Windhoek, and Amarula following its 2023 acquisition of Distell, said in a statement on Friday that the plant will produce 100 000 tonnes of malt annually using advanced trigeneration and solar technology, cutting emissions by 50% compared to industry norms.
“This facility strengthens our supply chain resilience and aligns with our sustainability targets,” Heineken Beverages managing director Jordi Borrut said. “It’s a significant step in localising production and supporting South Africa’s economy.”
The project will create 55 permanent jobs and bolster over 200 local barley farmers, with Soufflet Malt committing to source all barley domestically. The company, a unit of France’s InVivo Group, has spent years cultivating relationships with South African growers, offering training and commercial support to ensure premium barley output.
"To achieve this goal, Soufflet Malt has been working in the region for several years, building long-term partnerships with both commercial and developing farmers. Through training, mentoring, and commercial support, Soufflet Malt is helping them adopt agronomic best practices to grow high-quality, premium barley," Soufflet Malt said.
South Africa’s agricultural sector, a key economic driver, stands to benefit as global maltsters like Soufflet deepen their footprint.
South African agricultural exports rose 3% to a record $13.7 billion last year led by shipments of citrus fruit and grapes, a report released by the Agricultural Business Chamber of South Africa showed. Investments like this could further elevate its role in the global supply chain.
Soufflet Malt CEO Jorge Solis said, “This significant investment by Soufflet Malt, in partnership with our company, marks a monumental commitment to South Africa and is a venture we are immensely proud to be part of. Our company is deeply committed to the region, continuously enhancing our investment in the country. Our focus is on intensifying our support for local production, local sourcing, and job creation. This project is a clear testament to these objectives and aligns with our 'Brew a Better World' agenda, underpinned by sustainable practices and supporting the communities in which we operate."
Soufflet Malt, with 41 plants across 20 countries and an annual capacity of 3.7 million tonnes, dominates the $10bn global malt market. Its parent, InVivo, acquired the Soufflet Group in 2021 for €2.2bn, later expanding its lead by purchasing United Malt Group for A$1.5bn (R74bn) in 2023. The South Africa deal marks its latest move to secure supply chains for major clients like Heineken.
Heineken Beverages, meanwhile, emerged from a transformative $2.2bn acquisition of Distell and Namibia Breweries in April 2023, creating a regional powerhouse majority-owned by Heineken. The new malting plant dovetails with its strategy to localise inputs and reduce reliance on imports, a critical pivot as currency volatility and logistics costs challenge African markets.
Since 2023, Heineken Beverages has made significant investments in South Africa, reflecting its strategic focus on expanding operations, enhancing sustainability, and boosting the local economy.
At the South Africa Investment Conference in April 2023, Heineken Beverages committed to investing R15.5 billion over five years to bolster its operations in South Africa.
In March 2024, Heineken Beverages invested R2.3 billion to expand its returnable glass bottling program, shifting 65% of its beer portfolio, including the Heineken brand, to returnable bottles
The facility’s low-emission design - featuring conveyors to transfer malt directly to the brewery - reflects broader industry trends toward greener operations.
According to TechSci Research report, South Africa Beer Market – By Region, Competition, Forecast & Opportunities, 2030F - the South Africa Beer market stood at $3.6bn in 2024 and is anticipated to grow $5.31b nby 2030 with a CAGR 6.75% during forecast period.
Guillaume Couture, the President EMEA at Soufflet Malt, “Our collaboration with Heineken Beverages marks an exciting chapter for Soufflet Malt to further strengthen the South African malt supply chain. We look forward to deepening our partnership with local farmers, fostering the development of sustainable barley farming across the country and contributing to the long-term prosperity of South Africa through this initiative.
BUSINESS REPORT
Related Topics: