Putting a Spin on exports

Party-goers enjoying
a Smirnoff Spin in
Mozambique, Zimbabwe and
Namibia are more than likely
drinking a product made in
Mozambique by British group
Diageo.
Smirnoff Spin, Gilbey’s Gin
and Master’s Choice are bottled
in a facility situated around 30
kilometres north of Maputo in
the village of Marracuene on the
Incomati River.
Included in the Diageo
portfolio are brands such as
Johnnie Walker, Guinness,
Gilbey’s, Smirnoff, J&B, Baileys,
Tanqueray, Gordon’s, Master’s
Choice, Captain Morgan and
Crown Royal.
After 50 years of supplying
the Mozambique market
through exports, the company
in 2013 started work on a
US$20-million plant operated
by Diageo Supply Marracuene
as part of Diageo’s commitment
to economic growth in
Mozambique, according to
Miguel Soto, regional manager
Southern African Emerging
Markets (SAEM).
It is an award-winning
venture. Earlier in 2015
Smirnoff Spin was awarded the
best Mozambican brand in the
alcoholic beverages segment for
the second consecutive year.
Part of the formula for being
recognised as the best brand
is having the best logistics
network in place to ensure that
the product is readily available
and – in the case of Smirnoff Spin
– is cold.
This is no mean feat in
a country where summer
temperatures regularly exceed 40
degrees celsius.
There also has to be a reliable
logistics chain between the plant,
its suppliers and the customers.
It is a supply chain which
stretches in to the rural areas.
“From the
100 000 local
farmers across
Africa that
supply us with
sorghum or
barley, all the
way through
to small local
distributors and
retailers, many
benefit from
opportunities
created as a
result of their connection to
Diageo’s operations in Africa,”
says the company in a brochure
describing its business in Africa.
Diageo’s brands are available in
more than 40 countries, with the
first exports of Guinness to the
mainland (Sierra Leone) dating
back to 1827.
The business employs about
6 000 people across Africa.
“We believe that our approach
to inclusive value chains
stimulates entrepreneurship
and investment, and generates
significant employment.
“It opens access to the
commercial economy and to
capacity-building for agricultural
and other communities,” says the
company.
“The award shows clearly the
hard work of all employees who
directly or indirectly work hard
to deliver the best quality that our
consumers deserve,” says Soto.
“This year’s award is even more
rewarding because it reinforces
our commitment
to local
production, with
Diageo producing
Spin locally since
November last
year.”
Mozambique’s
gain is its
neighbour’s loss
as the production
was moved across
from South
Africa.
The Mozambican plant is
also exporting to neighbouring
countries.
In May 2015 the company
started exporting Smirnoff Spin
to Zimbabwe and Namibia and
expects to continue growing
exports to other countries,
according to Soto.
Despite its relative remoteness
from major sources of raw
materials and other inputs, the
Marracuene plant is producing
world-class beverages, he says.
“Both Gilbey’s and Master’s
Choice are produced in a CUBE,
which is an integrated production
system that incorporates the most
advanced technology that enables
the fabrication of high quality
beverages.
“This innovative production
system (which only exists in two
other countries around the world)
allows Diageo to produce these
two brands at a very affordable
price and with high standards
of quality for the Mozambican
consumers”.
Currently the company supports
around 50 direct and indirect jobs.
It is, however, active in the
community.
In partnership with Water
Aid it has invested in water and
sanitation holes, benefiting over
82 000 people, in the provinces of
Maputo and Zambezia.
“Continuing the worldwide
Diageo capability programme,
the company recently started
implementing a paid training
programme for recent college
graduates. The top students
after three years of training will
immediately be part of the senior
management of the company.
“This year the company will also
continue the MBA 303 barmen
training programme launched
in 2014. In the first launch of the
programme, 300 Mozambican
barmen were trained and graduated
in several modules including
responsible pouring of alcoholic
beverages, which is related to
responsible consumption of
alcoholic beverages,” says Soto.
INSERT
Part of the formula for
being recognised as the
best brand is having the
best logistics network in
place.
– Miguel Soto