The use of local raw materials in beer brewing: Heineken in Nigeria

This paper critiques the attempt by Nigerian Breweries Plc (NB, a subsidiary of Heineken) to increase its use of local raw materials for beer brewing. It argues that the greatest threat to this initiative has been the inconsistent Nigerian Government policies, especially with respect to promoting and encouraging the cultivation of local raw materials for beer production. Policy reversals in this direction have helped to slow down the backward integration initiative of the Nigerian Government aimed at replacing imported barley with local sorghum as the main ingredient for beer production in the country. While NB can help to fund research into the development of high yield sorghum hybrids, the task of ensuring the widespread and proper use of such seeds by local farmers will depend on the existence of a supportive and effective national agricultural policy. The development and operationalization of such a policy cannot be outsourced to multinational beer companies by the Nigerian Government.