IBL PLC 2018 Annual Report

2018

ANNUAL
REPORT
& FINANCIAL
STATEMENTS



Our Dream

Bringing people
together for a
better world

Our Dream-People-Culture
platform is a unique strength
of our company and guides
our performance.

The essence of our culture is
embodied in 10 Guiding
Principles.

Dream People People Culture Culture

01 02 03 04 05
Our shared Dream Our greatest strength is We recruit, develop and We are never The consumer is the
energizes everyone to our people. Great retain people who can completely satisfied boss. We serve our
work in the same people grow at the pace be better than with our results, which consumers by offering
direction: Bringing of their talent and are ourselves. We will be are the fuel of our brand experiences that
people together for a rewarded accordingly. judged by the quality of company. Focus and play a meaningful role
better world. our teams. zero-complacency in their lives, and
guarantee lasting always in a responsible
competitive advantage way.

Culture Culture Culture Culture Culture

06 07 08 09 10
We are a company of We believe common We manage our costs Leadership by personal We never take
owners. Owners take sense and simplicity are tightly, to free up example is at the core shortcuts. Integrity,
results personally. usually better resources that will of our culture. We do hard work, quality, and
guidelines than support sustainable and what we say. responsibility are key to
unnecessary profitable top line building our company.
sophistication and growth.
complexity.

Content

PAGE

Corporate Information

6 Notice of Annual General Meeting

8 Brief History

10 New Brewery, Brand Stories & Social Investments

41 The Board

48 Chairman’s Statement

58 Report of the Directors

72 General Mandate Circular

73 Report of Audit Committee

74 Statement of Directer’s Responsibilities

75 External Auditor’s Report

80 Statement of Profit or Loss and Other Comprehensive income

81 Statement of Financial Position

83 Statement of Equity

84 Cash Flows

85 Notes to the Financial Statements

135 Statement of Value Added

136 Five-Year Financial Summery

Shareholders Information

E-Dividend Mandate Form

Proxy Form

Corporate Information

Company registration number
RC 9632

Chairman Appointed 30 May, 2018

HRM Nnaemeka Alfred Achebe, CFR,MNI

Directors British Resigned 28 February, 2018
Nigerian Resigned 19 March 2018
Mrs. Annabelle Degroot Nigerian Appointed 26 February 2018
Mr. Sunday Akintoye Omole (SouthAfrican) Appointed 23 October, 2018
Mr. Folorunsho Awomolo (SouthAfrican) Appointed 30 May, 2018
Mr. Michael Oerlemans (SouthAfrican) Appointed 30 May, 2018
Mr. Christopher Tyne American Appointed 30 May, 2018
Mr. Zuber Momoniat Nigerian Resigned 31 December, 2018
Mr. Andrew Scott Murray Nigerian Appointed 30 May, 2018
HRM Peter Nwokike Anugwu Nigerian Appointed 30 May, 2018
Mr. Michael Onochie Ajuwku British With effect from 31 December 2018
Ms. Abiye Tobin-West Nigerian With effect from 18 April,2019
Mr. Phillip Redman Nigerian Resigned 19 February, 2018
Otunba Michael Daramola American Resigned 30 May 2018
Mr. Godwin Oche Nigerian
Mr. Richard Rivett-Carnac (SouthAfrican)
Ms. Olutoyin Odulate Nigerian
Mr. Gustav Van Heerden
Mrs. Afolake Lawal

Alternate: (Mr. Folorunsho Awomolo)

Mr. Olugbenga Awomolo

Company secretary/General Counsel Brewery Plants

Mr. Muyiwa Ayojimi Gateway
22/36 Glover road, Km 3 Shagamu- Abeokuta Expressway,
Ikoyi, Flourgate Industrial Scheme,
Lagos Ogun State.

Independent Auditors Ilesa
Lawrence Omole Way,
PricewaterhouseCoopers Omi-Asoro, Ilesa
Landmark Towers Osun State
5B, Water Corporation Road
Victoria Island, Onitsha
Lagos, Nigeria. SABMiller Drive, Habour Industrail Layout,
Onitsha,
Corporate Head Office Anambra

22/36 Glover road, Port Harcourt
Ikoyi, 186/187 Trans-Amadi Industrial layout,
Lagos Oginigba, Port Harcourt,
River State
Email: [email protected]
Website: www.internationalbreweriesplc.com

Bankers Stanbic IBTC Plc.
Standard Chartered Bank Limited
CitiBank Limited Union Bank of Nigeria Plc
Ecobank Plc. United Bank of Africa Plc.
First Bank of Nigeria Plc. Wema Bank Plc.
First City Monument Bank Plc. Zenith Bank Plc.
Guaranty Trust Bank Plc.
Polaris Bank Limited
Rand Merchant Bank Limited

Notice of Annual General Meeting

NOTICE IS HEREBY GIVEN that the 42nd Annual General Meeting of INTERNATIONAL
BREWERIES PLC will hold at the Auditoriuml, Green Legacy Resort, Presidential Boulevard
Road, Oke-Mosan Abeokuta, Ogun State on 20 August 2019 at 10.00.a.m. for the following
purposes:

ORDINARY BUSINESS

1. To lay before the meeting the report of the Directors, the Statement of Financial Position as at
31 December 2018, together with the Statement of Comprehensive Income for the year ended
on that date and the Reports thereon of the Independent Auditors and the Audit Committee.

2. To ratify/re-elect Director(s).

3. To authorize the Directors to fix the remuneration of the External Auditors.

4. To elect members of the Audit Committee.

SPECIAL BUSINESS

5. To approve the remuneration of the Directors.

6. To consider and if thought fit, pass the following resolution as an ordinary resolution of the
Company:
“That pursuant to Rule 20.8 of the Rulebook of the Nigerian Stock Exchange (Issuers Rule), a
general mandate be and is hereby given, authorizing the Company through the directors to
procure goods, services and finances incidental and necessary for its day to day operations
from related, interested companies or parties on competitive commercial terms consistent
with the Company’s Transfer Pricing Policy.”

Dated 17 July 2019.
BY ORDER OF THE BOARD

Muyiwa Ayojimi
Company Secretary/General Counsel
FRC/2013/NBA/00000002667

22/36 Glover Road,
lkoyi- Lagos.

International Breweries Plc.

6

Notes

1. Proxy 8 Alhaji Bashorun Street, off Norman Williams,
A member entitled to attend and vote at the S.W. Ikoyi, Lagos. Members are further urged
meeting can appoint a proxy in his/her stead. to advise the Registrars of any change in their
Such Proxy need not be a member of the security records and also, open a CSCS account.
company. A Proxy for a Corporation may vote on
a show of hands or Poll. A Proxy Form is attached 6. General Mandate Circular
to the Annual Reports and Accounts. If the Proxy A circular on the resolution for shareholders’
is to be valid for the purposes of the meeting, it approval of the general mandate for recurrent
must be completed, detached, with stamp duties transactions with related parties which provides
and deposited with the Registrars, Apel Capital the rationale for the mandate sought is included
Registrars, 8 Alhaji Bashorun Street, off Norman in the Annual Report and Financial Statements.
Williams, S.W. Ikoyi, Lagos or the office of the
Company Secretary, International Breweries Plc, 7. Securities Holder’s Rights
registered office not later than 48 hours prior to In accordance with Rule 19.12 of the Nigerian
the time of meeting. Stock Exchange “NSE Rules”, shareholders and
other holders of the Company’s securities have
2. Closure of Register and Transfer the right to ask questions not only at the meeting
Books but can also do so in writing prior to the meeting.
The Register of Members and Transfer Books Such questions and/or concerns, arising from
will be closed from Monday 5 August, 2018 to the Annual Report and Financial Statements
Friday 9 August, 2019 (both dates inclusive) for may be submitted to the office of the Company
updating the Register of Members. Secretary, with a copy to the NSE.

3. Nomination to the Audit Committee
In accordance with Section 359 (5) of the
Companies and Allied Matters Act, Cap.C20, Laws
of the Federation of Nigeria, 2004, any member
may nominate a Shareholder as a member of the
Audit Committee by giving notice in writing of
such nomination to the Company Secretary at
least 21 days before the Annual General Meeting.

4. Change of Address
Members are requested to notify the Registrars
of changes, if any, in their registered addresses
and or other details.

5. Unclaimed Dividend
Members who are yet to claim their previous
dividend(s) are advised to write to or call at the
office of the Registrars, Apel Capital Registrars,

International Breweries Plc.
7

Brief History

I nternational Breweries Plc was Lager, Castle lite, Grandmalt, Eagler Lager,
incorporated in December 1971 under the Stella Artois and Eagle Stout.
name International Breweries Limited.
The Company commenced production of its This increased our
flagship product Trophy Lager in December production facilities to
1978 with an installed capacity of 200,000 4 breweries: In Osun
hectoliters per annum. In December 1982, State - Ilesa, Anambra
the Company embarked on an expansion State - Onitsha, Rivers
programme. The company was listed on the State - Port Harcourt
floor of the Nigerian Stock Exchange in April and recently Gateway
1995. brewery in Ogun State.

In January 2012 SABMiller entered into a
strategic alliance with the Castel group who
were majority shareholders at the time.

In 2016, AB Inbev acquired SABMiller In 2017, AB Inbev
worldwide and by extension, their stakes acquired SABMiller
in Africa. AB Inbev’s majority shareholding worldwide and by
in Intafact Beverages Limited and Pabod extension, their
Breweries Limited (companies with similar stakes in Africa. AB
objects) were merged into International Inbev’s majority
Breweries Plc through a scheme of merger shareholding in
sanctioned by the Court and Regulatory Intafact Beverages
authorities in order to provide for the Limited and Pabod
optimization of efficiencies, leverage on Breweries Limited
economies of scale and shareholder value (companies with
creation amongst others. similar objects)
were merged
This increased our production facilities to into International
4 breweries: In Osun State - Ilesa, Anambra Breweries Plc
State - Onitsha, Rivers State - Port Harcourt
and recently Gateway brewery in Ogun State.
The corporate headquarters of the Company
is located in Lagos. Starting with just two
brands, Trophy Lager and Beta malt, our
brand offering now includes Budweiser, Hero

International Breweries Plc.

8



T he Gateway Brewery is the biggest and Government of the Federation.
most recent brewery in West Africa. The
brewery which sits on an expanse of Green Brewering
land at the Flourgate Industrial Scheme, Ogun
State was built with state-of-the-art facilities. It The Gateway Brewery has extensive eco-
produces all our brands which helps to satisfy our friendly components across its major operations.
increasing consumer demand. The Brewery was Giving the power challenges in the country, we
commissioned on August 28, 2018 by President devlivered plans to effectively surmount the
Mohammadu Buhari who was represented at challenge and consistently grow the buisness.
the event by Boss Mustapha, Secretary to the
The Gateway Brewery produces bio-gas from

International Breweries Plc.

10

Biggest
brewery site
in West Africa.
Sits on 45
acres of land
in Sagamu,
Ogun State.
Commissioned
on August 28
2018

our byproducts to help power our boilers. The levels of Carbon dioxide eliminating the risk of
brewery also utilizes Liquidfied Natural Gas asphyxiation, nausea and seizures which are
(LNG) to power our biolers. LNG is cleaner common with excessive levels of carbon dioxide
(possesses low risk to health) and more efficient. in the atmosphere. The Gateway Brewery was
Our combined heat and power system makes built with the UN 2025 Sustainability Goals in
the brewery the most energy efficient in the mind which is to ensure that “100% of our owned
AB InBev Africa group. Being a green brewery electricity will be from renewable sources and a
is equally important for our employees, the 25% reduction in CO2 emissions across our value
community hosting the brewery and the chain.
environment. Deploying renewable energy has
helped to lower considerably the concentration

International Breweries Plc.
11

Aiding the development of agricultural industries. As a result, the breweries
Agriculture such as ours tend to be more environmentally
friendly when compared to other industries. The
One of the benefits of the new Gateway collection of spent grain from our brewery would
Brewery is the contribution to the development enable these farms save a lot of money in making
and growth of agriculture in Ogun State feed available for their livestock animals and in so
and environs. A significant portion of raw doing maximize profits in the long run.
materials is locally sourced, there increasing
the production of raw materials like Maize in
and around Ogun State. This demand would
considerably increase the level of production
and in practical terms would mean more
cultivation by already existing farmers and a
window of opportunity for new entrants.

The spent grain from our production process
serves as the major raw material used in the
production of feed for Piggery farms. Spent
grain has the most value because of its high
levels of sugars and proteins. Given that these
are by products rather than waste products,
they can be recycled and reused in the food and

Mrs. Annabelle Degroot, Managing
Director, a Stakeholder, the Chair-
man of the Board, HRM Nnaemeka
A. Achebe and the AB Inbev Global
CEO, Mr. Carlos Brito

International Breweries Plc.

12

Increased employment From left, The Global CEO, AB Inbev, Mr. Carlos Brito,
Secretary to the Federal Government, Mr. Boss Mustapha,
Former Governor of Ogun State, Senator Ibikunle
Amosun, Managing Director of IBPlc, Mrs. Annabelle
Degroot and the Chairman of IBPlc, His Majesty,
Nnaemeka Alfred Achebe.

opportunities delivery of our products to distributors and
finally to the end-users in the most efficient and
One of the advantages that emanates effective way. It also possesses the capacity to
from establishing factories is the employment of increase significantly our production numbers,
the people in the locality. Our Gateway Brewery as we continuously strive to satisfy our teeming
has created 600 new direct jobs. We take our consumers.
recruitment exercise very seriously because we
are passionate to identify and nurture the best

talents we can find. We believe that our people

drive our success and performance in the market.

So we continuously hire people who will help to

build a company that will last. The Brewery has

also created well over 2,000 indirect jobs. These

people now have the wherewithal to provide for

their families while also providing income for the

government through taxes.

Improved route to market Former Governor of Ogun State,
Senator Ibikunle Amosun and
It is our vision to make our regional brands Mr. Boss Mustapha, Secretary
into national brands. To this end, our Gateway to the Federal Government of
Brewery stands at a vantage point to aid in the Nigeria

International Breweries Plc.
13

I nternational Breweries Plc. is committed Our Nigerian operations are aligned to
to driving the tenets of sustainability the UN 2025 Sustainability Goals and we
across its value chain. We believe that are developing programmes on ground to
a successful business requires a healthy, contribute to these goals:
natural environment, as well as thriving
communities. Water Stewardship

We are therefore committed to building a Climate Action
company that lasts, bringing people together
for a Better World, now and for the next 100+ Circular packaging
years. That’s why sustainability isn’t just part
of our business, it is our business. Smart Agriculture

International Breweries Plc.

14

The diagram below illustrates our commitment to the UNSDGs.

17 PARTNERSHIPS 3 GAONDODWHEELAL-LBTEHING
FOR THE GOALS

13 5 GENDER
EQUALITY
CLIMATE
ACTION

12 6

RESPONSIBLE CALNEDASNAWNIATTAETRION
CONSUMPTION
AND PRODUCTION

8 7 AFFORDABLE AND
CLEAN ENERGY
DECENT WORK AND
ECONOMY GROWTH

We are contributing to the UN SMART AGRICULTURE
Sustainable Development Goals, Nigeria’s WATER STEWARDSHIP
sustainable development agenda and the CIRCULAR PACKAGING
country’s overall development through CLIMATE ACTION
the building of resilient supply chains, RESPONSIBLE DRINKING
productive communities and a healthier
environment.

International Breweries Plc.
15

Supporting Communities Managers regularly interact with host
communities in the implementation of
To achieve our objective of bringing people intervention activities. This has helped to
together for a better world, we work within foster unity of purpose.
the communities where we operate - and
beyond - touching lives and investing in A major aspect of our corporate citizenship
their socio-economic development. is the employment of both direct and
In relating positively with the people, the indirect employees from communities.
company as part of its corporate social The company presently employs 2,131 full
responsibility, works with community time employees and provides over 5,000
representatives to identify interventions indirect jobs.
that will be beneficial to them and works
with them to execute projects. The projects Water Stewardship
typically cut across our five CSR Pillars:
We brew our beers at the highest level
• Empowerment of water efficiency and we continually
• Education challenge ourselves to do even more.
• Health
• Infrastructural support Water is life. That’s why we’re improving
• Lifestyle (Responsible drinking). water access and security in the
communities where we live and work. We
Our Corporate Affairs & Sustainability look beyond our own operations in order to

International Breweries Plc. Host community
at Gateway Plant

16

improve high-risk watersheds in the areas the water more available to the community
where we operate. as it is a source of their livelihood.
Our ultimate goal is to ensure water access
and quality for both our communities Our Water Leak campaign was aimed at
and our breweries. To demonstrate this, identifying water leakages and promptly
we provided Solar-powered boreholes to fixing them. Due to the success of the
beneficiaries in Ibadan and in Ilesa. program, which was originally part of the
World Water Day celebration, our sites have
Likewise, we constructed two boreholes adopted it as part of the monthly reward and
and presented them to the neighboring recognitions programme. This has resulted
communities of our Gateway Brewery in the engagement of very enthusiastic
in Ogun State. The beneficiaries are the individuals who report leaks and wastage
Logbara Community, as well as the Primary and follow up to ensure they are addressed
Health care centre, located in Owode Local thereby contributing to the Site’s water
Government Area of the state. reduction drive.

Our immediate communities also benefitted Investing in the health of
from enlightenment programmes during our communities
the World Water Day (WWD) promotion. In
Port-Harcourt and Onitsha, we engaged in Health is wealth. Based on the company’s
clearing of weeds around the rivers at our quest to impact positively on our host
host communities, as a support in making communities. We embarked on the

Logbara
community,
Ogun State.

International Breweries Plc.
17

renovation of the only Health Centre in Water
Esa-Odo community. is life.
The renovation, which was done That’s
in conjunction with the “Ësa-Odo why we are
Community in Diaspora” included improving water
replacement of all doors and windows, access and security in
repair of the damaged roof, tiling, the communities where
painting, toilet refurbishment and we live and work; and also
repair of the electrical wiring system. are looking beyond our own
The company also donated several operations and improving high-
hospital equipment and cots risk watersheds in the areas where
we operate. Our ultimate goal is to
ensure water access and quality
for both our communities and
our breweries.

Host community access to sanitation, the company also
constructed a 5-room toilet facility for
With our support, over 4,500 people the pupils of Omi-Asoro primary school.
within the community have access to Over 150 pupils benefitted from this
improved healthcare. initiative. For many years, the school had
To combat poor hygiene and to increase been without toilets. This project has not
only improved the lives of the students
and their teachers, but has assisted in
the prevention of germs, diarrhea and
the protection of the health of the entire
community.

International Breweries Plc.

18

Kickstarting a brigther
future for Nigerian
youths through
entrepreneurship
support

For the past three years, International I got
Breweries has implemented a far to know
reaching and impactful empowerment about
initiative: Kickstart. Kickstart (called Kickstart
Hero Kickstart in the South and Trophy program on
Kickstart in the West), is aimed at the social
creating a culture of entrepreneurship in media and
young people by: enhancing participants’ I applied.
business awareness and skills through
training and mentorship.

Our Kickstart initiative also provides
grants as start-up capital for new
businesses or to support expansion of
existing businesses while also providing
post-investment support through
coaching and mentoring.

Since it was launched, Kickstart has
granted a total of N251,200,000 to 184
youths between 2016 to 2018.

Since I was lucky I passed the screening and my
it was launched, story has changed for the better.

Kickstart has I am into bee farming. IBP Kickstart
provided me with 50 beehives and
granted a total of today, I can boast a turnover of
ten times. Because of the success
N251,200,000 to 116 recorded, I have been able to spread
the business tentacles to other
youths between farmers in the community.
Aside expanding the business
2016 to 2018. In 2018 venture, we have also impacted
the lives of our people through job
specifically, 71 youths across creation. So many people are smiling

Nigeria were empowered with
a grant of N116,399,565 to
start a brighter future of to the banks now, through the help of
IBP kickstart”.

owning their dream - Olumide Ogundimu

businesses.

International Breweries Plc.
19

KICKSTART BENEFICIARIES (2018)

S/N NAME TYPE OF BUSINESS
1. Ike, Finian Eberechunkwu Paint Production
2. Okoye, Chukwunonso Livinus Production
3. Ugochukwu, Augustine Okoye Manufacturing
4. Ifeanyidike, Henry Ugochukwu Farming
5. Nwaji, Emmanuel Nnanna Farming
6. Nwogwugwu, Daniel Samuel Production
7. Eze, Calista Farming
8. Onyeka, Innocent Kenechukwu Cosmetic Production
9. Ajuluchukwu, Ikennaemmanuel Agric
Farming
10. Onjewu Paul Production
11. Omega, Cynthia C. Furniture Making
12. Okosa, Emeka Production/Cosmetology
13. Ugwu, Nwamaka Harriet Plantain Chips Production
14. Olademola, Soares Pharmaceutical
15. Ijoma, Elizabeth Ihuoma Deaf Education
16. Iyowuna Sokari Davis Farming
17. Menyuah, Vivian Chizoba Fashion
18. Otue, Ernest Ifeatu Biogas System
19. Onyema, Malachy Chukwunonso Crude Palm Kernel Oil Production
20. Otubelu, Udoka Riches Prosthesis & Orthotic Rehabilitation Centre
21. Okoro, Uchechi Gideon Spice Production
22. Okpalaeke, Emmanuel C. Music Production
23. Nwobodo, Victor Chidera Laundry
24. Mbagwu, Victor Ugochukwu Production
25. Emezie, Blessing Osinachi Agriculture
26. Akpem, Terese Shadrach Barber Shop
27. Essumai, Michael Uzo Production
28. Nwani, Chidiebere IT
29. Chibueze, Elisha King Services
30. Ofili, Maxwell Madu Agriculture
31. Efiogbere, Elvis Brown Fashion Designing
32. Orji, Nnenna Mary Poultry
33. Mgbeoji, Chiomoma Ebuka Makeup Artist
34. Oyuwe, Enema Chinyere Katherine
20
International Breweries Plc.

35. Aniebonam, Lawrence Ugo Trading Business
36. Francis, Jane Okwuchi Pure Water Production & Distribution
37. Anyanwu, Susan Chioma Fashion
38. Nweke, Jessica Chidinma Fashion Designing
39. Adeoye, Joy Opeyemi Catering
40. Aersaa, Nicholas Ngusha Travel Agent
41. Ubaji Angelica/Brown’s Cuisine Services
42. Ogoun, Grace Timinipre Health Services
43. Ogoko, Chioma Trading
44. Ifesinachi, Angela Adamma Poultry
45. Jamiu Ridwan Babatunde Plantain Farming
46. Oke Olayinka Adesoji Veterinary Products And Services
47. Omotoso Samuel Tope Poultry & Catfish Production
48. Temitayo Mary Balogun Fashion and Accessories
49. Adesina Eniola Tolulope Photography
50. Banji Abisola Olaitan Fashion Designing
Beauty Salon and Production of Organic Hair
60. Oladosu Sefiyat Dasola Cosmetics
Food Processing
61. Dauda Saidat Omowumi Event Planning, Decorations and Special Effect
62. Shobowale Abayomi Isaac Dietary Business
63. Alabi Olufunke Oyedara Catfish Farming
64. Oke Ayoleke Zulkorinaeni Catering and Pasteries
65. Kolawole Elizabeth Olusade Shoemaking and Leather Works
66. Adefirantan Eunice Anuoluwapo Garri Processing
67. Joshua Ajisope Event Decoration an Management Services
68. Fagbamila Oluwatunmise Esther Bag Designer
69. Isola Mobolaji Kehinde Fashion Designing./Ready Made Clothing
70. Oguntoye Tosin Onaolapo Poultry Farming
71. Ayobami Fatokun Internet Services
72. Ayodele Tolulope Oluwatosin Leather Works
73. Olowookere Ifeoluwa ‘Dara Fashion Accessories Design And Production
74. Fadare Abiola Oluyemi Fashion School And Commercial Sewing
75. Olamigoke Moyinoluwa Piggery Farm
76. Oketade Alaba Ebenezer Fashion Designing
77. Oyewumi Bolanle
International Breweries Plc.
21

Promoting responsible plant engaged and educated haulage drivers
drinking and managers on the importance of safe
driving with emphasis on zero tolerance
As a company, we take alcohol responsibility for drinking and driving as well as drugs. In
very seriously, this is in line with our global our Port-Harcourt and Ilesa plants, we also
commitment to reducing and preventing partnered with the Federal Road Safety
the harmful use of alcohol. We work hard Commission (FRSC) to drive responsible
to ensure that our beers are consumed drinking by providing non-alcoholic drinks to
responsibly by adults of legal drinking age participants during the awareness sessions.
of 18+.
Health, safety and
Within the current year, the company environment are our
embarked on a number of initiatives to business priorities
enlighten both its internal and external
stakeholders on the importance of It’s our
responsible drinking. We are a membert responsibility to
of the Beer Sectorial Group (BSG) of ensure a culture
the Manucaturing Association of Nigeria in which safe
(MAN), a group commited to promoting behaviors are
campaigns on responsible drinking and observed, and
sectorial concerns. We partnered with road where people
safety marshals to inculcate the “Say NO to don’t cut corners –
drinking and driving” initiative. This program even with the best
includes the Driver Safety (Courteousness, intentions.
Alertness, Responsive (Awake) and Ensure)
C.A.R.E. campaign, carried out at every
festive period. For example in Onitsha, the

International Breweries Plc.

22

A focus on recycling A commitment to Safety, Health and
at our plant Environment, is the foundation of
a sustainable business – hence the
Waste management many initiaves across our operations
initiatives in our to demonstrate our commitment
to this way of life. We monitor
Ilesa Plant our leading and lagging safety
indicators with the aim of improving
resulted in improved on our safety performance.
recycling rates from
August 2018 to Our SHE programmes have been
expanded to involve not only our
by year-end. employees but also our communities
and stakeholders. In the year
under review, our employees from
Onitsha made a number of visits
to distributors to engage them on
safe work practices such as manual
handling, compliance to safety
procedures, road risk assessment
was also carried out which helps to
educate drivers on safe driving.

During the Safety Week and World
Safety day in Port-Harcourt, the

International Breweries Plc.
23

company partnered with the Federal daily SIO by employees, contractors, partners
Road Safety Commission, FRSC, and the and visitors. Safety awareness is consistent
Federal Fire Service, to tutor employees and continious on our sites to make the
and community leaders on ways to carry workplace a conducive environment.
out personal risk assessments. We also
flagged off the leadership behaviors and Deserving workers are recognized and
focus behaviors for departments, in a bid rewarded both in safety and environmental
to aid easy report of safety incidents and performance. As a result of our varying
observations (SIOs). At our Gateway Plant, safety initiatives, there were no fatalities
our health and safety initiatives encompass within our breweries under review.

We brew our beers at
the highest level of water
efficiency and we contin-
ually challenge ourselves
to do even more.

International Breweries Plc.

24



International Breweries Plc. THE

KING

COMES TO
NIGERIA

B udweiser, the American-style pale
lager and the most valuable beer
brand in the world was first introduced
in 1876 by Adolphus Busch and it is
enjoyed in 74 countries. The global
expansion of the beer to countries like Nigeria
and its sponsorship of the World Cup increased
its sales portfolio worldwide by 5.3%.

History was made in March 2018 when Budweiser
the King of Beers released a series of activities
leading up to its official launch in April. As it is
customary with Budweiser in terms of uniqueness
and innovation in all its dealings, a never before
seen commercial activity – A Cavalcade was
organized in some of the most iconic streets of
Lagos to heighten excitement and expectations.

Budweiser also introduced the Hand of the
King contest which went viral on social media.
The contest provided an immense platform to
engage with potential consumers online. The
successful contestants were invited to party
with celebrities and influencers at ‘The Bud
Hotel’ where Budweiser was officially unveiled.
The Bud Hotel is our own unique concept of
creating a hotel experience using Z-depth visual
mapping effect.

26

International Breweries Plc.
27

BudX debuts in

Lagos and Abuja

BudX is Budweiser’s trademarked creative
platform geared towards the development of
electronic music as a tool of social cohesion
and empowerment. A first-of-its-kind, 2-day
exclusive events were organized in Lagos and
Abuja in celebration of electronic music and
trend-setting African youth culture. Guests at
both events had memorable sessions with Chi
Modu, the legendary hip-hop photographer
renowned for his work on many hip hop icons.

The opportunity to view a collection of never-
before-seen images of hip-hop legends like
Tupac, Eazy E, Notorious B.I.G, Nas, Snoop
Dogg, alongside several other iconic images
was a sheer delight for the guests.

BudX also had exciting capacity building booth where guests were captured defying
masterclass sessions, panel discussions and gravity at an upside-down Budweiser bar.
live performances of artistes. The event The photo studio was extremely popular
had in attendance special and legendary with guests, with many capturing their
artistes, such as MI, NaetoC, Ill Bliss and new BUDX experience there. Guests also had
generation artistes, such as Marz and Barzini, the opportunity to shop exclusive limited-
POE, Dremo, Dice Ailes, Kwesi Authur and an edition pieces inspired by BudX and Chi Modu
amazing assemble of some of the best DJs by Nigerian street wear brands Garm Spot
which included Aye, Smallz, DJ Yin, DJ Wayne and Waffles n Cream. The experience was
among others. intriguing and worthwhile for the guests who
attended the sessions.

The incredible Budweiser “against-gravity”
photo studio/illusion room was an exciting

International Breweries Plc.

28

Budweiser Budweiser opened 24
amazing spiritual homes in
Spiritual Homes premium hubs across key
locations in Lagos city in
Lighting up the World Cup 2018. The spiritual homes
are tastefully branded to
The most popular sporting event across the excellent standards, giving
continents of the world is the World Cup. The consumers an opportunity to
experience is awesome for those viewing at experience the full breadth of
home and even more for those who watch the Budweiser’s quality offerings
live matches. Football is a passion point for the in a relaxed but stimulating
world over and presents a unique opportunity environment. The spiritual
for brands to connect with customers and homes are where the brand
consumers. Here in Nigeria, the World Cup brings its heritage, identity
afforded us, through our parent company’s and meaning to life.
sponsorship of the FIFA 2018 World Cup in
Russia, a significant amount of airtime in front
of a massive audience.
Leveraging on our global equity as the official
Beer sponsor of the 2018 FIFA World Cup,
Budweiser enhanced its premium positioning by
connecting with football fans across the country
when it organised over 2,500 activations and
hosted 50 viewing parties in strategic locations
across the country. These brought the unique
taste of Budweiser to the lips of Nigerians most
of whom were enjoying the King of Beers for
the very first time. These samplings have helped
in recruiting new and loyal consumers making
Budweiser the fastest growing premium beer in
Nigeria.
Budweiser also took its brand influencers to
Russia to watch the Nigerian Super Eagles
play live at the World Cup! It was an awesome
experience for the influencers who kept
their socail media followers abreast of all the
happenings in Russia.

International Breweries Plc.
29

THE Beta malt first launched in 1980s
ONLY remains one of the best selling malt
WAY drinks in Nigeria. In 2018, the volume
IS UP of Beta malt produced increased by
significantly when compared to the
previous year. The malt is made from the
finest natural ingredients such as barley
malt, hops, caramel, vitamins and a host
of others. Beta Malt elevates the food
and dining experience of consumers.

In 2018, Beta malt launched a new
and more appealing label that
the nourishment derivable from
consuming the brand. This new brand
communication and attractive look has

International Breweries Plc.

30

positively impacted the perception of the brand which in-turn
improved its patronage in the market.

Stock Keeping Units
Beta Malt understands its consumers and how their needs ought
to be met. This knowledge is based on its continuous research
and understanding of local market dynamics. In October 2018,
Beta malt added two new stock keeping units package to the
already existing glass bottle and can.

Offering new ways to experience Beta malt
We got closer and created long lasting experiences for
consumers through a series of activations organized in open
markets, schools, events and online platforms. The activations
were unique experiential promotional activities for the brand
which helped it connect with consumers in ways they have not
experience the brand before.

#Betamusicchallenge

Beta Malt
elevates
the food
and dining
experience
of consum-
ers.

We developed an online session with one of Nigeria’s
music contest to engage finest hip hop artiste, Ice
with our teeming consumers. Prince.
Participants recorded
individual songs using all
our key words - Beta malt,
Beta mind, nourishment just
got better, Beta you and the
only way is up. The recorded
were uploaded on our Twitter
platform using the hash tag
#Betamusicchallenge, and
tagging @betamaltng. The
winner of the music challenge
got a studio recording

International Breweries Plc.

31



GRAND MALT: M alt-based drinks have developed a
reputation over decades for their
The Award nutritional value, a message that has
Winning attracted consumers’ patronage in today’s
Malt Drink climate of increasing health awareness.
In this regard, Grand Malt our premium
brand stands out in the marketplace for its
quality and nourishment.

Grand Malt is a successive winner of taste
and quality award at the international
Monde Awards. Originally produced only
in our Pabod Brewery in Port-Harcourt,

but now produced in all our brewery sites. Grand Malt took the
bold step in extending its portfolio when it added two new Stock
Keeping Units. This brings the total number of packaging of the
brand to four unique SKUs.

Grand
Malt is a
successive
winner of
taste and
quality...

International Breweries Plc.
33

International Breweries Plc.

34

One of the highlights of 2018 was the 40th anniversary brewed with
celebrations of our premium lager beer, Trophy. Trophy is high quality
widely accepted as the ‘honourable’ beer that is deeply rooted ingredients
in socio-cultural values and loved by consumers because of its such as malted
distinctive taste and quality. The beer has remained a market barley, hops,
leader in its category. maize...

Trophy was first brewed in 1978, becoming our very first brand
launched into the market. The beer has consistently been
brewed with high quality ingredients such as malted barley,
hops, maize and it is best known for its “Crisp Refreshing”
taste. Trophy is accessible because it has an affordable price
point and as a result, it is constantly recruiting new consumers
who throng recreational facilities to consume the product.

Trophy lager has gone through several metamorphosis
culminating in a series of enhancements of the bottle and label.
In 2012, Trophy introduced a can version as an alternative
stock keeping unit packaging.

International Breweries Plc.
35

Making consumers

millionaires
Trophy celebrated its rewarded with cash prizes Trophy is a brand that would
loyal consumers with a and consolation prizes. The continue to avail consumers
sales promotion as part of promotion tagged ‘Honourable the best quality of beer in the
activities to celebrate its 40th Millionaires Promo’ was our market.
anniversary. The promotion way of saying thank you to our
made loyal consumers consumers for staying true to
millionaires on a weekly basis. our brand all these years.
Over 400 consumers were

International Breweries Plc.

36

Connecting with consumers through

music concerts

Hosting our loyal consumers to Music is a
electrifying music performances by connector;
rave making artistes via concerts was it reflects
another way Trophy celebrated its people’s
anniversary with loyal consumers. The reality
concerts, organized in Ibadan and
Ilesa were attended by thousands of
our consumers.

Music is a passion point for Nigerians
and it presents a unique way of
connecting consumers with our
brand. Music has a connector; reflects
people’s reality, lifestyle, politics and
issues in the community which makes
it a perfect ally for Trophy, a beer that
is deeply rooted in the socio-cultural
values of the society.

International Breweries Plc.
37





THE BOARD

THE
BOARD

THE BOARD

HIS MAJESTY NNAEMEKA A.
ACHEBE

CFR, MNI

Chairman

His Majesty Nnaemeka A. Achebe, Obi of Universities in the U.S.A and an alumni
Onitsha, had a 30-year career with the of the National Institute for Policy and
Royal Dutch Shell Petroleum Group of Strategic Studies, Kuru. He is currently the
Companies in Nigeria and overseas. Chairman of Unilever Nigeria Plc.

He is the Chairman of the Anambra State
Traditional Rulers Council and Chancellor
of Ahmadu Bello University, Zaria. He
was educated at Stanford and Columbia

MR. SUNDAY AKINTOYE OMOLE
Non- Executive Director

Sunday Akintoye Omole is a member of America. Mr. Omole has acquired wide
of the Association of Chartered and working experience both locally and
Certified Accountants U.K and holds an internationally. The scope of his working
MBA specialization in Human Resources life include accounting, audit and tax
from Everest University, United States practices, restructuring, commodities,
futures market analysis, financial services
and human resources management.
Mr. Omole is on the Board of Directors of
a few other Companies in Nigeria and the
United States.

International Breweries Plc.
41

THE BOARD

MRS. ANNABELLE DEGROOT
Managing Director

Prior to Annabelle’s appointment as degree in Economics and a Master of Arts
Managing Director, she served as Managing degree in Economics from Cambridge
Director, at Zambian Breweries. She University. Annabelle is a qualified
has about 20 years of experience in Chartered Accountant with the Institute of
Commercial, Audit and Finance functions in Chartered Accountants, England and Wales
her working career in the United Kingdom (ICAEW). She is a Fellow of the Zambian
and Zambia. She holds a Bachelor of Arts Institute of Chartered Accountants (ZICA)
and the Institute of Directors, Nigeria.

HRM IGWE PETER ANUGWU
JP, OFR.
Non-Executive Director

Igwe Anugwu is a private entrepreneur. He
holds a Diploma in Agricultural Engineering
from the School of Agriculture, Umudike in
Abia State.

He is a traditional ruler of the ancient the World Conference of Mayors.
Mbaukwu Kingdom in Anambra State and
Member, State Traditional Rulers Council He is the Chairman of the Board of Directors
and the Elders Council of Anambra State. of Julius Berger Services Nigeria Limited.
He is the holder of various congressional
Honors, Proclamations and Keys from
several cities in the United States of America
and a director of the board of directors of

International Breweries Plc.

42

THE BOARD

MR. MICHAEL AJUKWU extensive business experience in Africa
Non-Executive Director and particularly in Nigeria.
He has been an Independent Non-
Mr. Michael Ajukwu is an astute Executive Director at Tiger Brands Limited
professional with combined expertise and and Sterling Bank Plc respectively. Mr.
contribution to Stakeholder engagement, Ajukwu holds a B.Sc. in Finance from the
risk advisory, general management, University of Lagos and MBA in Accounting
corporate finance spanning over three and Finance from New York University
decades.

He is currently an Independent Director
on the board of Sterling Bank Plc. He
served as an Executive Director, Corporate
Banking with United Bank for Africa. Mr.
Ajukwu has over 21 years of experience in
the banking industry with specialty in the
Energy and Multinational sector. He has

ABIYE TOBIN-WEST
Non-Executive Director

Abiye Tobin-West is a seasoned Public West has cognate experience in corporate
Sector Administrator with several years governance and served on several
of experience. She is currently the Boards of corporations as a Government
Permanent Secretary of Ministry of Finance representative. Some of which include the
Incorporated (MOFI), Rivers State. Board of Internal Revenue Service, Rivers
State Tourism Development Authority,
As an astute Public Administrator, Tobin- Rivers Microfinance Agency, Nigeria
Engineering Works and RIVERSCOOP
Limited.
Abiye Tobin-West is a life member of
Economic Society of Nigeria, a fellow
of Chartered Institute of Taxation,
and a member of Institute of Cost and
Management Accountants.

International Breweries Plc.
43

THE BOARD

MR. OLUGBENGA AWOMOLO
Non - Executive Director

Gbenga Awomolo currently an Executive Limited, Nigeria, as an Immigration
Director (Operations) at Alumaco Plc and Consultant at Midwest Immigration
sits on the Board of several companies Consultants, in the United States and as an
particularly in the manufacturing sector. Operations manager at Midwest Staffing
He has worked in different capacities as an Group, USA. He also holds a Law degree
Investment Executive at Newco Investment from the University of Wales, Cardiff.

MR. ZUBER MOMONIAT
Finance Director

Zuber is a Chartered Accountant of close
to two decades of cognate practice. He
holds a National Diploma in Biotechnology
from the Witwatersrand Technikon in South
Africa, a BCom in Accounting as well as
BCom Honours in Financial Accounting
from the University of Witwatersrand in
Johannesburg, South Africa.

Zuber began his accounting career with He was the Finance Manager at PABOD
PriceWaterHouse Coopers “Pwc” in 2003 Breweries Limited (Subsidiary of ABInbev)
and went on to join the then SABMiller from where he was appointed as the
group as group reporting manager for Finance Director of the Company.
SABMiller Africa and Asia and later Finance
Manager for SABMiller Africa.

International Breweries Plc.

44

THE BOARD

MR. ANDREW MURRAY
Non-Executive Director

Budgeting and Business Performance
group focused on the financial results and
budgeting at the global headquarters.

Andrew Murray is currently the Vice Prior to joining ABInBev, Andrew worked
President, Finance for AB InBev Africa, at Bain & Company, a global management
leading the finance function across Africa consulting firm for approximately 7
operations, based in Johannesburg, South years. Andrew has a BA in Mathematics
Africa. Andrew joined ABInBev in 2013 as and Economics from Williams College
Director of Global M&A based in New York. and an MBA from The Kellogg School of
Management (Northwestern University).

In 2015, Andrew worked in ABInBev’s global

MR. RICHARD RIVETT-CARNAC
Non-Executive Director

Plc. Group (“SABMiller”) where his previous
roles were as the General Manager of
The SAB Thrive Fund, District Manager
of District Johannesburg Central (Sales
and Distribution) and a manager in the
Corporate Finance and Development team
based in the United Kingdom focusing
on global mergers and acquisitions for
SABMiller.

Richard Rivett-Carnac is the Mergers and Prior to joining SABMiller in London in
Acquisitions Director for AB InBev Africa 2009, Richard qualified as a Chartered
based in Johannesburg, South Africa. Accountant (SA) in Johannesburg and
then worked in London for seven years in
Richard joined AB InBev from SABMiller Investment Banking.

International Breweries Plc.
45

THE BOARD

OTUNBA MICHAEL DARAMOLA
Corporate Affairs Director

the setting up of an electro-mechanical
company with advisory bodies in the U.K.

Michael Daramola attended the prestigious Otunba Daramola has considerable
Kings College Lagos. He studied Industrial experience in the manufacturing industry
Economics in the then Soviet Union in 1986. and International Breweries Plc spanning
At different times he worked with L.M almost two decades. He is a member of
Ericsson Nigeria Limited and later, MicCom the National Economic Summit Group and
Cables & Wires. He was instrumental to serves on the boards of several Companies
and Agencies in Nigeria.

GODWIN OCHE
National Sales Director

Godwin has a background in Chemical
Engineering and holds a Post Graduate
Diploma in Business Administration and an
MBA from the Enugu State of Science and
Technology Business School.

He is a member of the Nigerian Institute of
Management and the Institute of Personnel
Management.

Godwin brings with him to the Board, was the Trade and Marketing distribution
about two decades of sales and marketing area manager at British American Tobacco.
experience with continental and merit
awards. Prior to joining the Company, he

International Breweries Plc.

46

THE BOARD

OLUTOYIN M. ODULATE
Independent Non-Executive
Director

Olutoyin is a seasoned Consumer Goods L’Oreal, MTN Nigeria & Accenture and most
and FMCG senior management professional recently as Regional Director Anglophone
with over 16 years of multi-national West Africa at Danone ELN where she
corporate experience in retail management worked for the past 6 years. She is
& distribution, supply chain optimization, currently the Founder & CEO, Olori Beauty
strategic development, operational Enterprise LTD, an African multi-brand
planning, risk management, business cosmetics manufacturing start-up, based
development, product development, out of Lagos, Nigeria.
branding and marketing across the
telecoms, management consulting & Toyin is also a Non-Executive Director at
consumer goods /FMCG industries. She has Afrinvest West Africa Limited. She holds
held past senior roles including missions at a Bachelor of Science degree in Civil &
Environmental Engineering from Temple
University in Philadelphia, Pennsylvania
and a Master of Business Administration
degree from INSEAD (France & Singapore)

MUYIWA AYOJIMI
Company Secretary/General
Counsel

was legal adviser to a handful of private
companies and has practiced extensively
before superior courts of record in Nigeria.

Ayojimi is a Barrister and Solicitor of the He is a member of the Institute of Chartered
Supreme Court of Nigeria with over 15 Secretaries and Administrators, Chartered
years of Law practice with considerable Institute of Arbitrators, International
experience in providing experiential Corporate Governance Network, Society
advisory in Corporate restructuring. He for Corporate Governance, Nigerian
Institute of Management and the Nigerian
Bar Association.

International Breweries Plc.
47

CHAIRMAN’S STATEMENT

Fellow Shareholders and commitment that ensured the suc-
cessful birth of our strategic initiatives.
I t gives me great pleasure to welcome
you to the 42nd Annual General Global/Nigeria Economic Outlook
Meeting of our Company, International
Breweries Plc.

I am indeed honoured as this is the first Globally, 2018 was a very positive year,
meeting of our shareholders since my riding on the back of robust growth
appointment as Chairman of the Board notwithstanding fears of recession and
of International Breweries Plc. economic slowdown. Commodity prices
impacted investments and growth in
2018 was transformational and marked many economies. The oil industry also
the first full year of our new amalgamat- performed below expectation.
ed Company. We have built a formidable
platform to project our value creation for On the local front, the economy started
our stakeholders and shareholders. well in 2018, as it rode on the back of
the outstanding capital market perfor-
I sincerely thank our shareholders and my mances which grew by 42%, the third
fellow directors for their lasting support best in the world and the best in Africa.

International Breweries Plc.

48

CHAIRMAN’S STATEMENT

The early growth gave optimism that the

year would be great. The optimism did According to the IMF World Economic

not last though because by the end of the Outlook report released in July 2018 the

first quarter of the year, the growth spurt Nigerian economy was projected to grow

had dampened. This set the tone for the by 2.1 per cent in 2018. However, due to

remainder of 2018, as growth became a unfavorable developments in the econo-

see-saw, rising in one quarter and falling my, this growth rate was downgraded to

in the next. While the economy has exit- 1.9 per cent later in the year under review.

ed recession, growth remained subdued This was specifically due to reductions in

as recovery continued, driven mainly by oil production and contractions in the

non-oil receipts. Stability experienced agricultural sector, a consequence of

in the macro environment allowed the the so-called farmers-herders clashes,

economy to grow mar- among others. Similarly,

ginally year-on-year. the Nigerian equities

The Central Bank of 2018 was market was in decline due
Nigeria remained reso- to political uncertainty,

lute to curtail inflation a very with investors losing over
as it held the Monetary positive N700 billion as at Sep-
Policy Rate, the bench- year, riding tember 2018. These were
mark rate, at 14% while clear signs of a troubled

bolstering stability and on the back economy.
liquidity in the foreign of robust In the last quarter of 2018,
exchange market.

In June, the Federal growth the nation’s external
reserves fell from $47.8

government signed into billion to $43.97 billion,

law a new tax regime for indicating a seven-month

the industry. An incremental excise duty low, despite rising international oil prices.

was introduced as part of government’s

efforts to boost its declining income. Our business environment was certainly

not immune to these macro-economic

realities, which formed the bedrock of

Operating Environment our numbers.

In its assessment of the first quarter 2018, Business Performance/Results for
the Nigeria Bureau of Statistics (NBS) the year
indicated that the country’s economic
growth slowed to 1.95 percent in first Our core brands performed well in 2018.
quarter of 2018, from 2.11 percent record- We leveraged our capacity expansion
ed in the fourth quarter of 2017. It stated at the Gateway Plant in Ogun State to
that real GDP as at end March 2018 was deepen market penetration. We also im-
N16.106 trillion as against the nominal plemented a deliberate route to market
GDP figure of N28.464 trillion.

International Breweries Plc.
49

CHAIRMAN’S STATEMENT

plan to increase volume delivery. Our People

The business delivered consistent top- Our people remain our greatest strength.

line growth. Revenue growth increased Several changes were made in the critical

significantly with continued premiumiza- functions/departments as well as promo-

tion and revenue management initiatives. tions during the year using the tools from

However, our production expansion in- our excellence program. Senior leader-

creased our gearing ratio thereby impact- ship positions were created to capture

ing on our profitability. The decisions of organic growth opportunities within our

the Board on borrowings were desperate business. We have a brand-new team of

measures in desperate times and were in Executive Directors in Marketing, Human

the interest of the Company. The Board Resources, Technical, Procurement, Trade

is firmly committed to ensuring Return and High-end marketing.

on Investments in no In line with our prin-

distant time. Our core ciples, employees are
brands growing at the pace of
We enjoyed healthy performed their talent and being
volume, revenue and well in 2018. rewarded accordingly.
market share growth We leveraged Employees are also be-
even in unprecedented our capacity coming conversant with
markets. Our frontline expansion at the new ways of working.
brands- , Trophy and the Gateway
Hero, continued to make Plant in Ogun Corporate Social In-
new inroads into the State vestments
hearts of consumers. Our

premium beer-, Budwei- The Corporate Social

ser, delivered strong Investments undertaken

performance in line with the category by the Company are contained in this

expansion framework. Budweiser was Annual Report.

the most “talked about” brand on digital

and social media during the 2018 FIFA I would like to highlight one of our social

World Cup Russia™, with an estimated investment initiatives, which is impacting

five billion social media impressions. It positively on the environment in which

was the biggest commercial campaign we operate. Our Kickstart programme

in our company’s history, with activa- - an entrepreneurial project targeted at

tions across more than 50 markets and youths to support/kickstart their busi-

565,000 points-of-consumption. We ness dreams. In the year under review,

were successful in building brand aware- 71 youths were empowered with a grant

ness in many of our new markets and are of N116,399,565 to start their businesses.

using this awareness to propel the brand A significant number of the applicants

toward future growth. were graduates and the project sum

award shows our commitment to sup-

porting the government in the reduction

International Breweries Plc.

50