EGYPT - Al Ahram Beverages Company (ABC), a fixture in Egypt’s beverage industry for over 120 years, has announced a €30 million (US$33.1 million) investment aimed at expanding its operations. 

As part of this initiative, the company is relocating its headquarters from Al-Obour to the MIVIDA business complex in New Cairo, effective September 1, 2024. 

This move marks the first time in 18 years that ABC has shifted its operational base and is seen as a crucial step in its continued growth.

The new office, situated in Cairo’s emerging business hub between New Cairo and the New Administrative Capital, has been designed with modern and flexible workspaces to portray contemporary working styles. 

“Our new office is not only distinguished by the strategic location, but it was also carefully designed to inspire our colleagues and visitors. It offers a vibrant and modern working environment that encourages collaboration,” Nikolay Mladenov, Managing Director of Al Ahram Beverages Company, emphasized the importance of this shift.

The new headquarters will feature a range of sustainability initiatives, including sensor-based lighting systems to reduce electricity consumption, a paperless office model, and the elimination of single-use plastics in favor of reusable materials. 

These steps are part of ABC's commitment to creating an eco-friendly workspace. 

“We aim to make this space not only functional but also a reflection of our sustainability goals,” Mladenov added.

Investment for capacity growth and sustainability

As part of its expansion efforts, ABC has increased its investment to €30 million (US$33.1 million) in 2023.

The funds have been allocated for the new headquarters and expanding capacity at the company’s Sharqiya production facility. Two state-of-the-art production lines were added to the Sharqiya plant, increasing its production capacity to 3.7 million hectoliters (MHL) and creating new job opportunities.

The Sharqiya plant, known for producing the popular Fayrouz malt beverage, has seen notable upgrades as part of these investments.

“These new production lines enhance our ability to meet growing demand while also maintaining our commitment to innovation and quality,” Mladenov noted.

ABC has also initiated a study to explore decarbonization across its operations, aiming to achieve Net-Zero targets for scope 1 and 2 emissions by 2030, with a broader goal of reaching Net-Zero across its entire value chain by 2040.

Environmental initiatives and water conservation

Over the past five years, ABC has invested more than EGP 50 million (US$1.03 million) in various environmental projects, including a waste management program in the 15th of May area and efforts to improve water sources in Siwa, through a protocol with the Ministry of Environment. 

These initiatives align with the company’s broader sustainability agenda, which focuses on environmental stewardship and corporate social responsibility.

In 2023, ABC surpassed its water balancing targets set for 2030, achieving more than 100% water balancing across its production sites. 

The company also optimized water usage, reaching consumption rates of 2.8 hectoliters per hectoliter (hl/hl) for malt beverages and 4.15 hl/hl across its total production.

Commitment to the Egyptian market

ABC's recent investments showcase its confidence in the Egyptian market, where the company has operated for over 120 years. 

With a workforce of more than 1,600 employees, ABC continues to prioritize local sourcing, contributing to the development of small farmers and small-to-medium enterprises (SMEs) in Egypt.

The company’s growth strategy emphasizes the importance of partnerships between the public and private sectors, as well as civic society, to support sustainable development. 

“We see a significant role for the private sector in driving economic growth and fostering collaboration for sustainable progress,” Mladenov said.