28 Jul 2025 Signal Hill Products invests R1bn in new Midrand brewery
New brewery a notable flagging of prospect for Signal Hill Products….
Signal Hill Products, the local brewer behind brands such as Devil’s Peak, Striped Horse, and Miller Genuine Draft, is upping its game with a significant investment in a R1-billion brewery currently under construction in Centurion, Gauteng.
The facility is expected to begin production in August, ramping up the company’s beverage output and solidifying its position in the flavoured alcoholic beverages (FABS) and beer markets.
The new plant will have the capacity to produce 200-million litres annually and will employ around 250 people. While the brewery will manufacture several of Signal Hill’s core products, a major focus will be on Strongbow cider that was acquired from Heineken as part of conditions set by SA competition regulators during Heineken’s acquisition of Distell.
Co-founder Derek Szabo confirms that the facility is being developed to meet these regulatory obligations, with room to package third-party beverages. “It will produce all our brands and have capacity to accommodate external partners as well,” he says.
Signal Hill currently holds licenses to produce and distribute international labels such as Miller and Bavaria, in addition to its own local offerings. The company is now eyeing further growth in the FABS category, where it already has a foothold with its KIX Spritzer brand and the recently acquired Strongbow.
“The FABS market has been growing by over 10% annually for the past decade. It’s a category we can’t ignore,” Szabo notes. “More beer drinkers are shifting toward sweeter alternatives.”
The Midrand brewery marks a major leap in scale for the company, which began as a small operation in Somerset West producing just 10 cases per batch. Over the past 15 years, Signal Hill has expanded steadily, moving through facilities in Salt River and Epping in Cape Town. The new plant is expected to output up to 100,000 cases per batch.
In addition to its own labels, Signal Hill manufactures beers for other brands, including the Fokofpolisiekar band’s Fokof Lager, and operates in partnership with smaller producers like St Francis Brewing Company to craft niche products such as Beach Blonde Lager and Wildside Session IPA.
Despite accounting for just 2% of the national beer and FABS market — currently dominated by giants SAB and Heineken — Signal Hill has established a strong presence in Gauteng and the Western Cape. The company is now looking to expand its footprint into other provinces and regional markets.
Signal Hill exports to six neighbouring countries and has recently entered the Kenyan market through a joint venture with Royal Swinkels, the Dutch brewer behind the Bavaria brand. While Kenya remains a challenging environment dominated by global player Diageo, Szabo remains optimistic about future growth opportunities.
A giant step forward
Founded in 2011 by Szabo and Russell Boltman after extensive travels through Europe and the US, Signal Hill was built on the vision of bringing greater variety to SA beer drinkers. The founders initially bootstrapped the business before attracting external investors to fund their first large-scale brewery in 2017.
Despite interest from potential acquirers in recent years, the company has chosen to remain independent. “We’re focused on sustainable growth and job creation,” Szabo says. “If the right strategic partner comes along to help us scale further, we’ll consider it — but for now, we’re proud of how far we’ve come.”
The South African alcohol industry contributes approximately R226-billion to the national economy and supports half a million jobs. Signal Hill, with its expanding workforce and growing influence, is positioning itself as a notable challenger in a highly competitive landscape.
Source: BusinessLive.co.za