In the African beer market, competition remains fierce. Beyond the opening of production units, the sector’s heavyweights engage in the acquisition of companies on different segments of the brewing value chain.
In Algeria, the French group Castel has just signed a letter of intent to acquire 100% of the Alver glass factory’s share capital, a Condor Group subsidiary based in Oran. The announcement was made in a press release published by the French group.
This acquisition, which is still subject to the approval of the authorities in charge of competition, should allow the French beer behemoth to get its hands on a company enjoying a solid position in packaging.
Alver is indeed the leading Algerian producer of glass products with an offer essentially covering the segment of glass bottles and jars for beverages and food products.
“This investment responds to a desire to promote the independence of activities with regard to imports of inputs and packaging and to reduce the use of plastic packaging while helping to develop returnable and recyclable glass”, can -we read in the press release.
More broadly, this approach offers the brewer the opportunity to have a 4th glass factory on the African continent after those in Cameroon, Angola, and Morocco. It is also part of a group strategy to make Algeria a hub for its beverage shipments to West Africa and Europe.
As a reminder, Castel is number two in the beer market on the African continent. The group generates nearly 80% of its overall turnover in Africa thanks to its company Brasseries et Glacières Internationales (BGI).
