Tanzania Breweries Limited

Tanzania Breweries Limited, commonly known as TBL, is a Tanzanian beverage manufacturer headquartered in Dar es Salaam. Its principal activities are the production, distribution and sale of malt beer, non-alcoholic malt beverages and alcoholic fruit beverages. The company is widely described as Tanzania's oldest and largest brewer and has operated as one of the country's most significant alcohol-beverage businesses. The business began in 1933 as Tanganyika Breweries in the territory then known as Tanganyika. In 1935 it was acquired by Kenya Breweries Limited, a Nairobi-based brewer. Its operations were combined with those of Kenya Breweries in 1936, contributing to the formation of East African Breweries Limited. Following the political union that created the United Republic of Tanzania, the company adopted the Tanzania Breweries name in 1964. The Tanzanian government first acquired a 45 percent interest in the company in 1967 and assumed full control in 1979 during the nationalization of major industries associated with the Arusha Declaration. The state-owned period was characterized by weak performance and losses. A major restructuring began in 1993 when the government entered a joint venture with South African Breweries International, later associated with SABMiller. The South African partner invested in the company and obtained a 50 percent interest. Under the new operating arrangement, production expanded substantially over the following years. TBL became the second company to list on the Dar es Salaam Stock Exchange when it completed an initial public offering on 9 September 1998. Its shares remain traded under the symbol TBL, and the company is included in the Tanzania All Share Index. Ownership and strategic relationships changed again during the 2000s. East African Breweries Limited acquired a minority stake in TBL in 2002 as part of a regional licensing and market-allocation arrangement involving SAB International. The arrangement also transferred the Kibo business to TBL and was associated with a very high reported share of Tanzania's beer market by 2004. East African Breweries ended the arrangement in 2010. It subsequently exercised an option connected with Serengeti Breweries and sold its 20 percent holding in TBL through a secondary offering on the Dar es Salaam Stock Exchange in 2011. TBL expanded its own Tanzanian portfolio in 2013 by acquiring control of Darbrew Limited, a producer of traditional African opaque beer. The wider group also includes interests in distilling, fixed-asset management and barley farming. TBL operates breweries in Dar es Salaam, Arusha, Mwanza and Mbeya. Its portfolio has included nationally recognized beer labels such as Kilimanjaro Lager, Safari Lager, Castle Lager, Castle Lite, Eagle, Balimi, Ndovu Special Malt and Castle Milk Stout, together with Grand Malta, Bia Bingwa, Safari Sparkling Water and Konyagi. The group also produces spirits through Tanzania Distilleries Limited and traditional African beverages through Darbrew Limited. The company has been recognized in Tanzania for its manufacturing and employer performance and has been described in the supplied reference material as a leading corporate taxpayer through corporate tax, excise duty and value-added tax. TBL's current operations, brand portfolio and ownership structure should be checked against the latest company disclosures because the cited historical material primarily describes the business through the 2010s.

Tanzania Breweries Limited traces its origins to 1933, when Tanganyika Breweries was founded in Tanganyika, the territory that later became part of Tanzania. In 1935 the business was acquired by Kenya Breweries Limited. The two operations were merged in 1936, contributing to the creation of East African Breweries Limited and placing the Tanzanian business within a wider East African brewing structure. The company's name changed from Tanganyika Breweries Limited to Tanzania Breweries Limited in 1964, following the political union of Tanganyika with Zanzibar and Pemba that formed the United Republic of Tanzania. The Tanzanian government acquired a 45 percent stake in 1967 and took full control in 1979 as part of the nationalization of major industries under the Arusha Declaration. During the state-owned period, the brewery suffered from poor management and became loss-making. A turnaround began in 1993 when the government entered a joint venture with South African Breweries International. The South African company invested in TBL and received a 50 percent ownership position. The new partnership introduced different management and operating capabilities, and production reportedly almost tripled within three years. TBL's capital-market profile changed in 1998 when it completed an initial public offering on the Dar es Salaam Stock Exchange on 9 September. It became the exchange's second listing and established TBL as a publicly traded Tanzanian company. Regional corporate relationships shaped the next phase. In 2002, East African Breweries Limited acquired a 20 percent interest in TBL as part of an agreement involving licensing, market positions and the exchange of interests between EABL and South African Breweries International. The arrangement included the transfer of the Kibo subsidiary to TBL. The cited reference material reports that TBL held approximately 98 percent of the market by 2004, although the precise basis and period for that figure require verification from contemporary market or company disclosures. EABL ended the arrangement in 2010. It had an option relating to a controlling interest in Serengeti Breweries, Tanzania's other major beer producer, and sold its 20 percent TBL stake through a secondary offer on the Dar es Salaam Stock Exchange in 2011. TBL continued to broaden its domestic operations. On 14 March 2013 it acquired 60 percent of Darbrew Limited, which produces traditional African beverages commonly described as opaque beer. The group structure described in the reference material includes Kibo Breweries Limited, wholly owned and used for the management and leasing of fixed assets; Tanzania Distilleries Limited, in which TBL holds 65 percent and which produces spirits; Darbrew Limited, held at 60 percent; and Mountainside Farms Limited, held at 4 percent and associated with barley farming. TBL itself produces, distributes and sells beer and other beverages through breweries in Dar es Salaam, Arusha, Mwanza and Mbeya. Its reported brand roster includes Castle Lager, Castle Lite, Kilimanjaro Lager, Eagle, Balimi, Ndovu Special Malt, Safari Lager, Castle Milk Stout, Grand Malta, Bia Bingwa, Safari Sparkling Water and Konyagi. The portfolio spans mainstream lager, premium or international-style beer, malt drinks, stout, opaque beer, spirits and non-alcoholic refreshments. The company has also been recognized in Tanzania for employer and manufacturing performance and has been described as a leading taxpayer. Because the available source material is primarily historical, present-day ownership, leadership, brand availability and operating results should be confirmed through current exchange filings and company publications.

1. 2017Manufacturer of the Year recognition

   The supplied material records another Manufacturer of the Year award.

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2. 2016Further industry recognition

   The company is again recorded as receiving employer and manufacturing awards.

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3. 2015Recognition for employer and manufacturing performance

   The reference material records TBL as receiving Employer of the Year and Manufacturer of the Year recognition during this period.

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4. 2013Darbrew becomes a controlled investment

   TBL acquires 60 percent of Darbrew Limited.

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5. 2011EABL exits its TBL investment

   EABL sells its 20 percent TBL holding through a secondary offering on the Dar es Salaam Stock Exchange.

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6. 2010Regional market arrangement ends

   EABL ends its agreement with TBL and receives an option connected with Serengeti Breweries.

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7. 2002East African Breweries acquires a minority stake

   EABL acquires 20 percent of TBL under a regional licensing and market arrangement.

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8. 1998Dar es Salaam Stock Exchange listing

   TBL completes its initial public offering and becomes the second company listed on the exchange.

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9. 1993Joint venture with South African Breweries International

   A joint venture and investment by South African Breweries International begins a major operational turnaround.

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10. 1979Full nationalization

    The government assumes full control during the nationalization of major industries.

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11. 1967Government acquires a minority stake

    The Tanzanian government acquires a 45 percent interest in the brewery.

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12. 1964The company adopts the Tanzania Breweries name

    The name changes after the political formation of the United Republic of Tanzania.

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13. 1936Operations are combined into the East African brewing structure

    Tanganyika Breweries and Kenya Breweries operations are merged, contributing to the formation of East African Breweries Limited.

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14. 1935Acquisition by Kenya Breweries

    Kenya Breweries Limited acquires Tanganyika Breweries.

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15. 1933Tanganyika Breweries is founded

    The predecessor business of Tanzania Breweries Limited is established in Tanganyika.

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A broad Tanzanian beverage house built around mass-market and premium beer, supported by malt drinks, traditional opaque beer, spirits and other refreshment products. Its positioning is closely tied to national brewing heritage, extensive distribution and a multi-brand portfolio.

• Kilimanjaro LagerLager beer

  A core TBL lager brand associated with the Tanzanian market and included among the company's principal beer offerings.

• Safari LagerLager beer

  A major lager in TBL's portfolio, positioned as a nationally distributed beer brand.

• Castle LagerLager beer

  A lager brand listed among TBL's key commercial offerings.

• Castle LiteLite beer

  A lighter beer variant within the Castle family represented in TBL's reported portfolio.

• EagleBeer

  A beer brand included in the company's reported set of key brands.

• BalimiBeer

  A TBL beer brand identified in the historical portfolio listing.

• Ndovu Special MaltMalt beverage

  A special malt product included among TBL's key brands.

• Castle Milk StoutStout

  A stout offering in the Castle portfolio marketed through TBL's Tanzanian business.

• Grand MaltaNon-alcoholic malt beverage

  A malt-based non-alcoholic beverage listed among TBL's key brands.

• Bia BingwaBeer

  A beer label included in the historical TBL brand portfolio.

• Safari Sparkling WaterSparkling water

  A non-alcoholic refreshment brand associated with the Safari portfolio.

• KonyagiSpirit

  A spirits brand listed in the TBL group portfolio; the reference material also identifies Tanzania Distilleries Limited as the group's spirits business.

• 2013Acquire control of Darbrew LimitedM&A

  TBL sought to expand its beverage portfolio beyond conventional packaged beer.

  What changed. TBL acquired 60 percent of Darbrew Limited, a producer of traditional African opaque beer.

  Aftermath. Darbrew became a controlled company within the TBL group.

  Acquisition consideration. TSh 8,816 million for a 60 percent interest (14 March 2013)

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• 2002Participate in a regional licensing and market-allocation arrangementStrategy

  The East African brewing sector was being reorganized through relationships among TBL, East African Breweries and South African Breweries International.

  What changed. EABL acquired a 20 percent interest in TBL, while the broader arrangement included licensing commitments and the transfer of Kibo to TBL.

  Aftermath. The cited material associates the arrangement with TBL reaching a reported 98 percent share of the Tanzanian beer market by 2004.

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• 1998List the company on the Dar es Salaam Stock ExchangeOther

  TBL sought access to public capital and a broader shareholder base.

  What changed. The company completed an initial public offering on 9 September 1998.

  Aftermath. TBL became the second company listed on the Dar es Salaam Stock Exchange.

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• 1993Enter a strategic joint venture with South African Breweries InternationalStrategy

  TBL had experienced poor performance and losses during the state-owned period.

  What changed. The Tanzanian government formed a joint venture with South African Breweries International, which invested in TBL and received a 50 percent ownership interest.

  Aftermath. The reference material reports a rapid turnaround and nearly threefold production growth over the following three years.

  Investment by South African Breweries International. US$22.5 million investment and 50 percent ownership (1993)

  Source

• 2013TBL acquires control of Darbrew

  Tanzania Breweries acquired 60 percent of Darbrew Limited, a Dar es Salaam producer of traditional African opaque beer.

  M&A
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• 2011East African Breweries sells its TBL holding

  After the regional arrangement between the businesses ended, East African Breweries disposed of its 20 percent interest in TBL through a secondary offering on the Dar es Salaam Stock Exchange.

  M&A
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• 1998TBL completes Dar es Salaam Stock Exchange initial public offering

  Tanzania Breweries Limited listed on the Dar es Salaam Stock Exchange on 9 September, becoming the exchange's second listed company.

  Other
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• 1935Tanganyika Breweries is acquired by Kenya Breweries

  Kenya Breweries Limited acquired the young Tanzanian brewing operation, which was subsequently combined with its operations.

  M&A
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• 1933Tanzania Breweries is established as Tanganyika Breweries

  The brewing business that later became Tanzania Breweries Limited was founded in Tanganyika.

  Other
  Source

1. Tanzania Breweries Limited