Contents

1 BGI Ethiopia back ground.........................................................................................................................2

Value........................................................................................................................................................2

Goal.........................................................................................................................................................2

2 Firm products...........................................................................................................................................3

3 SWOT analysis of the company................................................................................................................3

3.1 Strengths...........................................................................................................................................3

3.2 Weaknesses.......................................................................................................................................3

3.3 Opportunities....................................................................................................................................3

3.4 Threats...............................................................................................................................................4

4 Type of industrial firm..............................................................................................................................4

5 Components of BGI Ethiopia.....................................................................................................................5

6 Nature of demand....................................................................................................................................5

7 PESTEL......................................................................................................................................................5

Summary.................................................................................................................................................6

Reference................................................................................................................................................7

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1 BGI Ethiopia back ground
B.G.I ETHIOPIA PLC is a company located in Addis Ababa, Ethiopia. The company is mainly
working in Beer Factories business sectors.
BGI has three brewery factories around the country including Addis Ababa, Kombolcha and
Hawassa and is currently undertaking the construction of winery around Zeway. BGI is a large-
scale brewery and beverage production wing of Group Castel, operating in over 53 countries.
Since 1998, BGI Ethiopia has been operating in the production and distribution of beer, wine and
other beverages. BGI owns six breweries including the iconic St. George Brewery in Addis
Ababa, the Kombolcha Brewery, the Hawassa Brewery, Zebidar Brewery, and Maychew
Northern Brewery, and quite recently Meta Abo Brewery producing more than 4 million
Hectoliters of beer (bottles and draft) annually. BGI Ethiopia P.L.C. also owns and manages the
Castel winery and vineyard located in the town of Zeway. Established in 2012, the winery
produces 12,000 Hectoliters of different wine varieties annually under the brand names Acacia
and Rift Valley. BGI Ethiopia's products are distributed by partner agents in all corners of the
country and exported internationally to North America (USA and Canada), Europe (UK, Italy,
France, Germany, Switzerland, Belgium, Netherland, etc.) Middle East (Israel and UAE),
Australia, Africa (Kenya, Tanzania, South Africa, South Sudan, Djibouti, etc.) Asia (China,
Japan, etc.)

BGI Ethiopia is a private company that has been in the industry for 25 years. The company
currently specializes in the Food & Beverages, Distillers, Brewers and Wineries areas. The
position of the CEO is occupied by Laurent Lescuyer. Its headquarters is located at Addis Ababa,
Addis Ababa, Ethiopia. The number of employees ranges from 1.0K to 5.0K. The BGI Ethiopia
annual revenue is estimated at < 1M. To connect with BGI Ethiopia employee register on Signal
Hire.
 Website https://bgiethiopia.com/ 

 Industries Food and Beverage Services
 Company size 1,001-5,000 employees
 Headquarters Addis Ababa, Addis Ababa
 Type Partnership
 Founded 1998
 Specialties Beer, Malt Drinks, and Wine

Value: - to provide exceptional General Contracting, Construction Management and Design-

Build services for our partners. BGI CSR activity giving back to our community is a core value
at BGI Ethiopia

Goal: - to allow students to build their future careers.

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2 Firm products
 St. George Lager Beer Lager - Pale.
 St. George Amber Beer Lager - Amber / Red.
 St. George Panach' Shandy / Radler.
 Castel Beer (Ethiopia) Lager - Pale.
 Doppel Brown Beer Brown Ale - Other.
 SEN'Q Malt Beer Non-Alcoholic Beer - Other.

3 SWOT analysis of the company

We are in a highly lucrative market in a rapidly growing economy. We foresee our strengths as the ability
to respond quickly to what the market dictates and to provide quality brew in a growing market. In
addition, through aggressive marketing and quality management we intend to become a well-respected
and known entity in our respective industry. Below are the summarized strengths, weaknesses,
opportunities and threats.

3.1 Strengths
 Strategic market segmentation and implementation strategies.

Diversified market segments: ensuring the lack of dependency on one particular market.

Combination of skills in directorship. The directors intend to jointly develop business strategy and long-
term plans, having wide experience in product and business know-how.

 Quality Uniqueness- flavorful and fresher tasting product

 reputation of manufacturing comparison to our competitors.
 High profit margin
 Exclusive image

3.2 Weaknesses
 Higher price than mass-production beer
 A limited financial base compared to the major players in the industry.
 Lack of clear-cut channels of distribution.
 Establishment on the Internet will produce technological challenges.

3.3 Opportunities
 Specific niche: Appreciation for high-quality brew, enjoyment, and refreshment (and integration
therein).
 The new generation of individuals and families has a far greater appreciation of attractive
packaging (image conscious).
 Sales volume increased

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  Less number of competitor with the different target market.
 Beer industry- high growth. low failure. Low market concentration

3.4 Threats
The present growth in the market may result in market saturation, through competition. This competition
could emerge from a variety of given sources including:

 Established mass-market companies’ development of new lines and vertically integrating so as to

be totally in control of supplies and products being sold on the respective markets.
 New marketing strategies and tactics by established products and companies.
 Existing competition.

4 Type of industrial firm

BGI Ethiopia is Original equipment manufacturers (OEM) they buy different ingredients and
bottle of different beverage company and produce their beer and wine by the following process:-
I. Malting:
Beer is produced from barley grains.
Barley grains are first cleaned and then soaked in water for about 2 days. Then excess
water is drained away and the barley are incubated for 4-5 days to allow germination
The germination steps allow the formation of highly active α-amylase, β-amylase and
proteases enzymes as well as various flavor and color components
II. Kilning:
The germinated seed are then killed by slow heating at 80° this process is called kilning.
The kilning temperature must not harm amylase enzyme. Furthermore, if kilning
temperature is higher, darker will be the beer produced.
III. Mailing:
The dried barley grains are then crushed between rollers to produced coarse powder
called grist
IV. Mashing:
Grist is mixed with warm water and the resulting materials are maintained at 65°C for
about 1 hour.
In doing so, starch is hydrolyzed by amylase enzyme to produce single sugar, maltose,
dextrose etc. similarly, protein is hydrolyzed by proteolytic enzymes into small fragments
and amino acids.
V. Boiling of wort:
The filtrate is then boiled with stirring for 2-3 hours and hop flowers are added at various
intervals during boiling.
VI. Hops:
Hops are dried female flower of hop plant Humulus lupulus. Approximately one quarter
pound of hop flower is added per barrel of beer and up to 2 pound per barrel of ale.
VII. Fermentation:
Beer production utilizes strain of Saccharomyces carlsbergens and S. varum which are
bottom yeast and S. cerevisiae which is top yeast.

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VIII. Finishing, Ageing, Maturation and Carbonation:
The young and green beer is stored in vat at 0°C for several weeks to several months.
During this period, precipitation of protein, yeast, resin and other undesirable substances
take place and beer become clear.

5 Components of BGI Ethiopia

 Customers of the company is Ethiopian community which are use the products of beer
 Suppliers are farmers for agricultural products that can use for ingredient for beer or wine
and other suppliers are bottle suppliers from different countries distributes
 The company use types of distribution channel which is whole sealers and retailers are
the main role player in the beverage companies

6 Nature of demand
The products of BGI Ethiopia are very demanded specially St. Gorge beer is mostly have high
sales volume but it affected by different factors for the demand the first is the price of beer in the
current situation all most all beer products have the same price so it cannot affect the demand of
the produce second the buyers income and the overall influence of country economy and the
taste and the preferences of the products are highly affect the demand of company.

7 PESTEL
 Political affect: - the political situation of the counter directly affects the distribution
process and the price of the produce for example in the current situation northern part of
Ethiopia is very difficult to distribute and the price is very high if you can find any BGI
products by any chance.
 Economic affect :- as I discussed in the demand nature the country economy is directly
influents the buyers behavior because beer are most likely luxury goods or substitute
goods that are not important to have it or not because of that most people reduce the
consumption level because of their economic standard and the country economic
inflations.
 Social affect: - in our community drinking beer or wine are allowed in some level but
when the consumer is became fuddle and addiction on it community become attainment
them from all social activities and give them a nick name. In other hand the company
bulled different infrastructures for the society.
 Technological affect :- it directly affect the manufacturing process when new technology
is drive that is use to facilitate the manufacturing process the company most buy the new
machine and face to cost again and again.
 Ecological affect: - the west of the manufacturing is having negative impact on the
surrounding environment and the community that lives in the manufacturing and the
smoke of the company create air pollution.
 Legal affect: - in our country there is no advertising for any alcohol drink it directly affect
the company sales volume and the other issues id tax and tariff that deduced from
beverage companies as a whole.

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Summary
B.G.I ETHIOPIA PLC is a company located in Addis Ababa, Ethiopia. The company is mainly
working in Beer Factories business sectors.
BGI has three brewery factories around the country including Addis Ababa, Kombolcha and
Hawassa and is currently undertaking the construction of winery around Zeway

The company produce product like St. George Lager, Beer Lager – Pale, St. George Amber Beer
Lager, - Amber / Red. St. George Panach' Shandy / Radler, Castel Beer (Ethiopia) Lager – Pale,

BGI Ethiopia is Original equipment manufacturers (OEM) they buy different ingredients and bottle of
different beverage company and produce their beer and wine

Customers of the company is Ethiopian community which are use the products of beer. The
company use types of distribution channel which is whole sealers and retailers are the main role
player in the beverage companies

The products of BGI Ethiopia are very demanded specially St. Gorge beer is mostly have high
sales volume but it affected by different factors for the demand the first is the price of beer in the
current situation all most all beer products have the same price so it cannot affect the demand of
the produce second the buyers income and the overall influence of country economy and the
taste and the preferences of the products are highly affect the demand of company.

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Reference
1 https://bgiethiopia.com/ 
2 https://bgiconstruction.com