Alcoholic Drinks in South Africa
Euromonitor International's Alcoholic Drinks in South Africa market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 162 | Publication date: Mar 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Beer; Cider/perry; RTDs/High-strength premixes; Spirits; Wine
Executive summary
Premiumisation puts value ahead of volume
Desire for premium brands continued to be the most widespread theme shaping consumer choices across alcoholic drinks in 2007, pushing current value growth ahead of volume growth. While the majority of consumers show an aspirational mindset, new consumers and those trading up from lower price levels ensured that sales of mid-priced and economy alcoholic drinks also remained healthy.
Aspirant middle income consumers continue to dictate to manufacturers
Despite the greater economic pressures placed on consumers, the majority size and impetus created by the new middle-class led the performance of manufacturers and distributors. Companies sought to fulfil the desire for premium products while being increasingly mindful of consumers’ limited disposable income and this is set to become paramount going forward into the forecast period.
Manufacturers focus on top brands
With alcoholic drinks remaining fairly stable and most products performing well, companies have little incentive to develop new products. Instead, they focused on supporting or developing existing product ranges. Within the current environment, brands that become iconic within each product area have the greatest chance of continued success and marketers are thus focused on boosting brand equity.
Supermarket-affiliated specialists gain ground
Supermarket retailers with wine licenses and specialists affiliated to supermarket chains took a greater share of total volume sales in 2007, with this share set to grow further during the forecast period. With supermarkets/hypermarkets expanding into traditional townships and more rural areas, affiliated liquor specialists have a keen consumer base, which they can easily attract by offering a wide range of products at competitive prices.
Economic slowdown will limit growth going forward
The South African exchange rate is set to make it more difficult for local distributors to maintain prices of imported brands during the forecast period. Meanwhile, consumers are showing signs of declining disposable income levels, due to a number of socio-economic factors. Regardless of consumers’ desire for premium products, companies will increasingly compete for share of throat with consumers typically hankering for products they cannot afford.
Table of contents
ALCOHOLIC DRINKS IN SOUTH AFRICA : MARKET INSIGHT
EXECUTIVE SUMMARY
Premiumisation puts value ahead of volume
Aspirant middle income consumers continue to dictate to manufacturers
Manufacturers focus on top brands
Supermarket-affiliated specialists gain ground
Economic slowdown will limit growth going forward
KEY TRENDS AND DEVELOPMENTS
Black mid-income group continues to spur growth
South Africans seek out premium brands for image and quality
Consumers following global trends
Polarisation bodes well for private label development
Spectre of a marketing black-out is not top of mind for manufacturers
Specialist Retailers
Summary 1 Leading Specialist Retailers 2006
Market Merger and Acquisition Activity
MARKET BACKGROUND
Legislation
TAXATION AND DUTY LEVIES
Table 1 Taxation and Duty Levies on Alcoholic Drinks 2007
Table 2 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2007
Table 3 Selling Margin of a Typical Domestically Produced Beer Brand 2007 – The South African Breweries Ltd’s Carling Black Label
Table 4 Selling Margin of a Typical Domestically Produced Wine Brand 2007 – Distell Group Ltd’s Nederburg
Table 5 Selling Margin of a Typical Imported Wine Brand 2007 – Edward Snell & Co’s Moët & Chandon
Table 6 Selling Margin of a Typical Domestically Produced Spirits Brand 2007 – Distell Group Ltd’s Klipdrift
Table 7 Selling Margin of a Typical Imported Spirits Brand 2007 – Brandhouse’s Smirnoff
OPERATING ENVIRONMENT
Contraband/parallel trade
Duty free
Cross-border/private imports
MARKET INDICATORS
Table 8 Retail Consumer Expenditure on Alcoholic Drinks 2002-2007
MARKET DATA
Table 9 Sales of Alcoholic Drinks by Sector: Total Volume 2002-2007
Table 10 Sales of Alcoholic Drinks by Sector: Total Value 2002-2007
Table 11 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2002-2007
Table 12 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2002-2007
Table 13 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: Volume 2007
Table 14 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: Value 2007
Table 15 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: % Volume 2007
Table 16 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: % Value 2007
Table 17 Company Shares of Alcoholic Drinks by Global Brand Owner 2003-2006
Table 18 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2007
Table 19 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2007
Table 20 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2007-2012
Table 21 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2007-2012
Table 22 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2007-2012
Table 23 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2007-2012
DEFINITIONS
Sources
Summary 2 Research Sources
LOCAL COMPANY PROFILES - SOUTH AFRICA
BRANDHOUSE - ALCOHOLIC DRINKS - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Brandhouse: Key Facts
Summary 4 Brandhouse: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 Brandhouse: Competitive Position 2006
DGB (PTY) LTD - ALCOHOLIC DRINKS - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 DGB (Pty) Ltd: Key Facts
Summary 7 DGB (Pty) Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 8 DGB (Pty) Ltd: Competitive Position 2006
HALEWOOD INTERNATIONAL LTD - ALCOHOLIC DRINKS - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Halewood International Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 Halewood International Ltd: Competitive Position 2006
NMK PREMIUM GLOBAL BRANDS PTY LTD - ALCOHOLIC DRINKS - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 11 NMK Premium Global Brands Pty Ltd: Key Facts
Summary 12 NMK Premium Global Brands Pty Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 NMK Premium Global Brands Pty Ltd: Competitive Position 2006
THE COMPANY OF WINE PEOPLE (PTY) LTD - ALCOHOLIC DRINKS - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 14 The Company of Wine People (PTY) LTD: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 15 The Company of Wine People (Pty) Ltd: Competitive Position 2006
BEER IN SOUTH AFRICA
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager price band methodology
Summary 16 Lager by Price Band 2007 (off-trade)
SECTOR DATA
Table 24 Sales of Beer by Subsector: Total Volume 2002-2007
Table 25 Sales of Beer by Subsector: Total Value 2002-2007
Table 26 Sales of Beer by Subsector: % Total Volume Growth 2002-2007
Table 27 Sales of Beer by Subsector: % Total Value Growth 2002-2007
Table 28 Sales of Beer by On-trade vs Off-trade split: Volume 2002-2007
Table 29 Sales of Beer by On-trade vs Off-trade split: Value 2002-2007
Table 30 Sales of Beer by On-trade vs Off-trade split: % Volume Growth 2002-2007
Table 31 Sales of Beer by On-trade vs Off-trade split: % Value Growth 2002-2007
Table 32 Beer: Production, Imports and Exports: Total Volume 2001-2006
Table 33 Beer Exports by Country of Destination: Total Volume 2001-2006
Table 34 Beer Exports by Country of Destination: Total Value 2001-2006
Table 35 Beer Imports by Country of Origin: Total Volume 2001-2006
Table 36 Beer Imports by Country of Origin: Total Value 2001-2006
Table 37 Company Shares of Beer by National Brand Owner 2002-2006
Table 38 Company Shares of Beer by Global Brand Owner 2002-2006
Table 39 Brand Shares of Beer 2003-2006
Table 40 Forecast Sales of Beer by Subsector: Total Volume 2007-2012
Table 41 Forecast Sales of Beer by Subsector: Total Value 2007-2012
Table 42 Forecast Sales of Beer by Subsector: % Total Volume Growth 2007-2012
Table 43 Forecast Sales of Beer by Subsector: % Total Value Growth 2007-2012
CIDER/PERRY IN SOUTH AFRICA
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 44 Sales of Cider/Perry: Total Volume 2002-2007
Table 45 Sales of Cider/Perry: Total Value 2002-2007
Table 46 Sales of Cider/Perry: % Total Volume Growth 2002-2007
Table 47 Sales of Cider/Perry: % Total Value Growth 2002-2007
Table 48 On-trade vs Off-trade Sales of Cider/Perry: Volume 2002-2007
Table 49 On-trade vs Off-trade Sales of Cider/Perry: Value 2002-2007
Table 50 On-trade vs Off-trade Sales of Cider/Perry: % Volume Growth 2002-2007
Table 51 On-trade vs Off-trade Sales of Cider/Perry: % Value Growth 2002-2007
Table 52 Cider/Perry Production, Imports and Exports: Total Volume 2001-2006
Table 53 Company Shares of Cider/Perry by National Brand Owner 2002-2006
Table 54 Company Shares of Cider/Perry by Global Brand Owner 2002-2006
Table 55 Brand Shares of Cider/Perry 2003-2006
Table 56 Forecast Sales of Cider/Perry: Total Volume 2007-2012
Table 57 Forecast Sales of Cider/Perry: Total Value 2007-2012
Table 58 Forecast Sales of Cider/Perry: % Total Volume Growth 2007-2012
Table 59 Forecast Sales of Cider/Perry: % Total Value Growth 2007-2012
RTDS/HIGH-STRENGTH PREMIXES IN SOUTH AFRICA
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 60 Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2002-2007
Table 61 Sales of RTDS/High-strength Premixes by Subsector: Total Value 2002-2007
Table 62 Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2002-2007
Table 63 Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2002-2007
Table 64 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2002-2007
Table 65 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2002-2007
Table 66 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2002-2007
Table 67 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2002-2007
Table 68 RTDS/High-strength Premixes Production, Imports and Exports: Total Volume 2001-2006
Table 69 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2002-2006
Table 70 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2002-2006
Table 71 Brand Shares of RTDS/High-strength Premixes 2003-2006
Table 72 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2007-2012
Table 73 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Value 2007-2012
Table 74 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2007-2012
Table 75 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2007-2012
WINE IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Published data comparisons
SECTOR DATA
Table 76 Sales of Wine by Subsector: Total Volume 2002-2007
Table 77 Sales of Wine by Subsector: Total Value 2002-2007
Table 78 Sales of Wine by Subsector: % Total Volume Growth 2002-2007
Table 79 Sales of Wine by Subsector: % Total Value Growth 2002-2007
Table 80 Sales of Wine by On-trade vs Off-trade split: Volume 2002-2007
Table 81 Sales of Wine by On-trade vs Off-trade split: Value 2002-2007
Table 82 Sales of Wine by On-trade vs Off-trade split: % Volume Growth 2002-2007
Table 83 Sales of Wine by On-trade vs Off-trade split: % Value Growth 2002-2007
Table 84 Volume Sales of Still Red Wine by Price Segment 2004-2007
Table 85 Volume Sales of Still White Wine by Price Segment 2004-2007
Table 86 Volume Sales of Still Rosé Wine by Price Segment 2004-2007
Table 87 Volume Sales of Other Sparkling Wine by Price Segment 2004-2007
Table 88 Sales of Still Red Wine by Grape/Varietal Type 2004-2007
Table 89 Sales of Still White Wine by Grape/Varietal Type 2004-2007
Table 90 Sales of Still Rosé Wine by Grape/Varietal Type 2004-2007
Table 91 Sales of Still Red Wine by Quality Classification 2002-2007
Table 92 Sales of Still White Wine by Quality Classification 2002-2007
Table 93 Sales of Still Rosé Wine by Quality Classification 2002-2007
Table 94 Wine Production, Imports and Exports: Total Volume 2001-2006
Table 95 Wine Exports by Country of Destination: Total Volume 2001-2006
Table 96 Wine Exports by Country of Destination: Total Value 2001-2006
Table 97 Wine Imports by Country of Origin: Total Volume 2001-2006
Table 98 Wine Imports by Country of Origin: Total Value 2001-2006
Table 99 Company Shares of Still Light Grape Wine by National Brand Owner 2002-2006
Table 100 Company Shares of Still Light Grape Wine by Global Brand Owner 2002-2006
Table 101 Brand Shares of Still Light Grape Wine 2003-2006
Table 102 Company Shares of Champagne by National Brand Owner 2003-2006
Table 103 Company Shares of Champagne by Global Brand Owner 2003-2006
Table 104 Brand Shares of Champagne 2003-2006
Table 105 Company Shares of Other Sparkling Wine by National Brand Owner 2002-2006
Table 106 Company Shares of Other Sparkling Wine by Global Brand Owner 2002-2006
Table 107 Brand Shares of Other Sparkling Wine 2003-2006
Table 108 Company Shares of Fortified Wine and Vermouth by National Brand Owner 2003-2006
Table 109 Company Shares of Fortified Wine and Vermouth by Global Brand Owner 2003-2006
Table 110 Brand Shares of Fortified Wine and Vermouth 2003-2006
Table 111 Company Shares of Non-grape Wine by National Brand Owner 2003-2006
Table 112 Company Shares of Non-grape Wine by Global Brand Owner 2003-2006
Table 113 Brand Shares of Non-grape Wine 2003-2006
Table 114 Forecast Sales of Wine by Subsector: Total Volume 2007-2012
Table 115 Forecast Sales of Wine by Subsector: Total Value 2007-2012
Table 116 Forecast Sales of Wine by Subsector: % Total Volume Growth 2007-2012
Table 117 Forecast Sales of Wine by Subsector: % Total Value Growth 2007-2012
SPIRITS IN SOUTH AFRICA
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Vodka, gin and other blended Scotch whisky Price band methodology
Summary 17 Benchmark brands – South Africa
SECTOR DATA
Table 118 Sales of Spirits by Subsector: Total Volume 2002-2007
Table 119 Sales of Spirits by Subsector: Total Value 2002-2007
Table 120 Sales of Spirits by Subsector: % Total Volume Growth 2002-2007
Table 121 Sales of Spirits by Subsector: % Total Value Growth 2002-2007
Table 122 Sales of Spirits by On-trade vs Off-trade split: Volume 2002-2007
Table 123 Sales of Spirits by On-trade vs Off-trade split: Value 2002-2007
Table 124 Sales of Spirits by On-trade vs Off-trade split: % Volume Growth 2002-2007
Table 125 Sales of Spirits by On-trade vs Off-trade split: % Value Growth 2002-2007
Table 126 Sales of Blended Scotch Whisky by Premium/Super-premium Split 2004-2007
Table 127 Sales of Gin by Premium/Super-premium Split 2004-2007
Table 128 Sales of Vodka by Premium/Super-premium Split 2004-2007
Table 129 Sales of Flavoured vs Non-flavoured Vodka 2004-2007
Table 130 Spirits Production, Imports and Exports: Total Volume 2001-2006
Table 131 Whisk(e)y Production, Imports and Exports: Total Volume 2001-2006
Table 132 Brandy & Cognac Production, Imports and Exports: Total Volume 2001-2006
Table 133 Vodka Production, Imports and Exports: Total Volume 2001-2006
Table 134 Gin Production, Imports and Exports: Total Volume 2001-2006
Table 135 Rum Production, Imports and Exports: Total Volume 2001-2006
Table 136 Tequila Production, Imports and Exports: Total Volume 2001-2006
Table 137 Liqueurs Production: Total Volume 2001-2006
Table 138 Other Spirits Production: Total Volume 2001-2006
Table 139 Company Shares of Spirits by National Brand Owner 2002-2006
Table 140 Company Shares of Spirits by Global Brand Owner 2002-2006
Table 141 Brand Shares of Spirits 2003-2006
Table 142 Forecast Sales of Spirits by Subsector: Total Volume 2007-2012
Table 143 Forecast Sales of Spirits by Subsector: Total Value 2007-2012
Table 144 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2007-2012
Table 145 Forecast Sales of Spirits by Subsector: % Total Value Growth 2007-2012