Beer deal gets 'em hopping

22 April 2016 - 02:19 By ©BDlive 2016

Additional conditions imposed on the merger of Anheuser-Busch InBev and SABMiller were revealed yesterday by Economic Development Minister Ebrahim Patel. In his budget vote speech in the National Assembly, Patel said that AB InBev had committed R1-billion to benefit farmers and suppliers of inputs in "the largest financial commitment yet by a company in merger proceedings".At least R610-million would be used to support the development of 800 emerging farmers and 20 commercial farmers producing brewing ingredients barley, hops, maize and malt. The intention is to create at least 2600 jobs in agriculture."The company [wants] to turn South Africa from a net importer of hops to a net exporter of hops and value-added malt," Patel said.AB InBev has agreed not to retrench any worker involuntarily as a result of the merger."The company also agreed to maintain its workforce in the beer and cider divisions - roughly 5900 permanent employees - at current levels for the next five years," the minister said.Other terms of the agreement dealt with economic empowerment, keeping its African headquarters in Johannesburg, giving small brewers access to fridges and cooler space in retail spaces, and promoting alcohol-free and low-alcohol products...

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