Heineken has entered into a commercial partnership with French malting group Soufflet Malt to supply malt for its South African operations.
Under the agreement, Soufflet Malt will invest €100m ($108m) in a new malt production facility in South Africa, set to produce nearly 100,000 tonnes a year.
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Slated to be operational by the middle of 2027, the factory will be situated next to Heineken’s Sedibeng Brewery near Johannesburg, enabling malt to be transported directly via a conveyor system, cutting emissions and costs.
In a statement, Heineken said the new site will be the “most technologically advanced malthouse in South Africa”.
It will emit “50% fewer emissions than the industry average by using trigeneration and solar energy”, the business added.
The facility is expected to generate 55 full-time jobs and support over 200 South African barley growers.
Jordi Borrut, managing director of the company’s South African business Heineken Beverages said Soufflet Malt’s cash injection “marks a monumental commitment to South Africa”.
Borrut added: “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 EMEA president Guillaume Couture said: “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.”
Soufflet Malt operates 41 malting plants across 20 countries in Europe, Asia, Africa, Australia, and South America.
With an annual production capacity of 3.7 million tonnes, the company supplies malt to large breweries, craft brewers and distillers.
Heineken expanded its presence in South Africa by establishing Heineken Beverages in 2023 following the merger of Heineken South Africa, Distell, and Namibia Breweries.
Later that year, the Amstel brewer announced major capital investment in South Africa to build a brewery and a maltery.
The group’s South African portfolio includes the brands Savanna Premium Cider, Amarula Cream Liqueur, Bain’s Whisky, Nederburg wines, and of course, Heineken beers.
For the year 2024, Heineken reported a 1.2% drop in revenue to €35.9bn, while net profit reached €978m, a 57.6% decrease compared to the previous year.
Meanwhile, the group’s Africa and Middle East net revenue (beia) reached €4.1bn, accounting for 13.5% of the group’s total revenue in 2024.
Last month, Heineken’s operations in DR Congo in central Africa were disrupted as M23 rebel conflict escalated in the east, affecting its facilities in Bukavu and Goma.
