Meta Abo Brewery: Creating a Sustainable Value Chain in Ethiopia Case Solution
This is just an excerpt. This case is about GLOBAL BUSINESS
PUBLICATION DATE: December 01, 2016
When the Meta Abo Brewery Company, Ethiopia's second largest brewery based in Sebeta, Ethiopia, was bought from the government by UK-based Diageo PLC in 2012, sustainability of basic material supply, especially barley, was a key concern. At the time of the acquisition, the Meta Abo Brewery was importing all its malt barley. In the same year, Walsh signed the letter of intent committing Diageo to invest US$ 1.5 million scalable value chain project to source barley for the Meta Abo Brewery from about 6,000 smallholder farmers with the potential to scale up to 20,000 metric tons per year by 2016. This would still not fulfill all demands for the malt barley required to produce the malt needed by the Meta Abo Brewery, but it was a step in the right track in terms of increasing local content in a market computing for inputs. How would Diageo and Meta Abo Brewery implement this bold move to partner with 6,000 smallholder farmers to increase both good quality and quantity of local sourced malt barley?
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