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: 156 | Publication date: Apr 2009
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
Volume growth slows in 2008
The alcoholic drinks market in South Africa experienced slower volume growth during 2008 compared to that of the review period. Much of the slowdown was due to the continued stagnation of domestic lager. In contrast, value sales continued to accelerate achieving double-digit growth. A stronger average price increase was attributable to actual price increases across products, as well as the growing popularity of premium products. More significant price increases were inevitable, including rising fuel prices that led to increased distribution costs.
Cider records best performance
Various alcoholic drinks products in South Africa are already approaching maturity or are established and thus posted modest to sluggish growth in 2008. However, cider was the exception achieving double-digit volume growth in 2008. Active promotions through mass media advertising from key player Distell was one of the main factors of cider’s continued strong progress in 2008.
Domestic companies maintain dominance
The South African alcoholic drinks market is characterised by local companies, each of which has significant share in specific product groups. The strongest player is South African Breweries, which maintained its lead of alcoholic drinks overall through its strength in beer and RTDs. Meanwhile, third-ranked company Distell led in wine, cider and spirits. Although the top three players maintained their rankings in 2007, their shares nonetheless declined, with another local company Brandhouse gaining ground since its inception in 2004. By 2008, Brandhouse had already achieved a notable presence across most alcoholic drinks products, and not just in specific products.
Off-trade continues to hold a majority share
Off-trade volume sales of alcoholic drinks continued to outweigh the on-trade significantly up to 2008. However, accurate estimations of off-trade versus on-trade volume and value sales remain rather vague in the context of the South African market. There are a large number of informal retailers selling alcohol without the necessary licenses, which is a source of considerable concern for the industry as a whole. Furthermore, the dominance of off-trade has also come from the fact that many licensed on-trade establishments find it more cost effective to buy alcohol from discounters compared to manufacturers or distributors directly.
The rise of supermarket affiliated alcohol outlets has increased the distribution footprint and is expected to dominate sales via the off-trade distribution channel during the forecast period. The rise of these types of outlets is expected to have a positive effect on the reduction of illegal retailers in the future, as these smaller outlets will be unable to compete on product range or price.
Further stagnation likely over the forecast period
Volume growth is still expected to remain positive but at a slower rate during the forecast period compared to the previous five years. With products such as wine and beer already approaching maturity, manufacturers will need to make more of an effort to stimulate sales. Innovative developments within production processes, packaging and communication are likely to increase as manufacturers/distributors will have to intensify and streamline their input to ensure continued sustainability.
Table of contents
ALCOHOLIC DRINKS IN SOUTH AFRICA : MARKET INSIGHT
EXECUTIVE SUMMARY
Volume growth slows in 2008
Cider records best performance
Domestic companies maintain dominance
Off-trade continues to hold a majority share
Further stagnation likely over the forecast period
KEY TRENDS AND DEVELOPMENTS
Premiumisation spreads to RTDs and ciders
Economic downturn dampens the performance of alcoholic drinks
Product portfolio expansion becomes more pronounced
Illegal trade on the rise
More innovations in packaging
Specialist Retailers
Summary 1 Leading Specialist Retailers 2007
Market Merger and Acquisition Activity
MARKET BACKGROUND
Legislation
Taxation and Duty Levies
Table 1 Taxation and Duty Levies on Alcoholic Drinks 2008
Table 2 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2008
Table 3 Selling Margin of a Typical Beer Brand 2008 -Carling Black Label
Table 4 Selling Margin of a Typical Wine Brand 2008 - Fleur de Cap
Table 5 Selling Margin of a Typical Spirits Brand 2008 - Smirnoff
OPERATING ENVIRONMENT
Contraband/Parallel Trade
Duty Free
Cross-border/private imports
MARKET INDICATORS
Table 6 Retail Consumer Expenditure on Alcoholic Drinks 2003-2008
MARKET DATA
Table 7 Sales of Alcoholic Drinks by Sector: Total Volume 2003-2008
Table 8 Sales of Alcoholic Drinks by Sector: Total Value 2003-2008
Table 9 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2003-2008
Table 10 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2003-2008
Table 11 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2008
Table 12 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2008
Table 13 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2008
Table 14 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2008
Table 15 Company Shares of Alcoholic Drinks by Global Brand Owner 2004-2007
Table 16 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2008
Table 17 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2008
Table 18 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2008-2013
Table 19 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2008-2013
Table 20 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2008-2013
Table 21 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2008-2013
DEFINITIONS
Summary 2 Research Sources
LOCAL COMPANY PROFILES - SOUTH AFRICA
BRANDHOUSE BEVERAGES (PTY) LTD - ALCOHOLIC DRINKS - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Brandhouse Beverages (Pty) Ltd: Key Facts
Summary 4 Brandhouse Beverages (Pty) Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 Brandhouse Beverages (Pty) Ltd: Competitive Position 2007
DGB (PTY) LTD - ALCOHOLIC DRINKS - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 DGB (Pty) Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 DGB (Pty) Ltd: Competitive Position 2007
HALEWOOD INTERNATIONAL LTD - ALCOHOLIC DRINKS - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Halewood International Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 9 Halewood International Ltd: Competitive Position 2007
NMK PREMIUM GLOBAL BRANDS PTY LTD - ALCOHOLIC DRINKS - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 10 NMK Premium Global Brands Pty Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 11 NMK Premium Global Brands Pty Ltd: Competitive Position 2007
OMNIA WINES - ALCOHOLIC DRINKS - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Omnia Wines: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 Omnia Wines: Competitive Position 2007
BEER IN SOUTH AFRICA
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager price band methodology
Summary 14 Lager by Price Band 2008
Published data comparisons
SECTOR DATA
Table 22 Sales of Beer by Subsector: Total Volume 2003-2008
Table 23 Sales of Beer by Subsector: Total Value 2003-2008
Table 24 Sales of Beer by Subsector: % Total Volume Growth 2003-2008
Table 25 Sales of Beer by Subsector: % Total Value Growth 2003-2008
Table 26 Sales of Beer by On-trade vs Off-trade Split: Volume 2003-2008
Table 27 Sales of Beer by On-trade vs Off-trade Split: Value 2003-2008
Table 28 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 29 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 30 Beer: Production, Imports and Exports: Total Volume 2002-2007
Table 31 Beer Exports by Country of Destination: Total Volume 2002-2007
Table 32 Beer Exports by Country of Destination: Total Value 2002-2007
Table 33 Beer Imports by Country of Origin: Total Volume 2002-2007
Table 34 Beer Imports by Country of Origin: Total Value 2002-2007
Table 35 Company Shares of Beer by National Brand Owner 2003-2007
Table 36 Company Shares of Beer by Global Brand Owner 2003-2007
Table 37 Brand Shares of Beer 2004-2007
Table 38 Forecast Sales of Beer by Subsector: Total Volume 2008-2013
Table 39 Forecast Sales of Beer by Subsector: Total Value 2008-2013
Table 40 Forecast Sales of Beer by Subsector: % Total Volume Growth 2008-2013
Table 41 Forecast Sales of Beer by Subsector: % Total Value Growth 2008-2013
CIDER/PERRY IN SOUTH AFRICA
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Published data comparisons
SECTOR DATA
Table 42 Sales of Cider/Perry: Total Volume 2003-2008
Table 43 Sales of Cider/Perry: Total Value 2003-2008
Table 44 Sales of Cider/Perry: % Total Volume Growth 2003-2008
Table 45 Sales of Cider/Perry: % Total Value Growth 2003-2008
Table 46 On-trade vs Off-trade Sales of Cider/Perry: Volume 2003-2008
Table 47 On-trade vs Off-trade Sales of Cider/Perry: Value 2003-2008
Table 48 On-trade vs Off-trade Sales of Cider/Perry: % Volume Growth 2003-2008
Table 49 On-trade vs Off-trade Sales of Cider/Perry: % Value Growth 2003-2008
Table 50 Company Shares of Cider/Perry by National Brand Owner 2003-2007
Table 51 Company Shares of Cider/Perry by Global Brand Owner 2003-2007
Table 52 Brand Shares of Cider/Perry 2004-2007
Table 53 Forecast Sales of Cider/Perry: Total Volume 2008-2013
Table 54 Forecast Sales of Cider/Perry: Total Value 2008-2013
Table 55 Forecast Sales of Cider/Perry: % Total Volume Growth 2008-2013
Table 56 Forecast Sales of Cider/Perry: % Total Value Growth 2008-2013
RTDS/HIGH-STRENGTH PREMIXES IN SOUTH AFRICA
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Published data comparisons
SECTOR DATA
Table 57 Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2003-2008
Table 58 Sales of RTDS/High-strength Premixes by Subsector: Total Value 2003-2008
Table 59 Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2003-2008
Table 60 Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2003-2008
Table 61 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2003-2008
Table 62 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2003-2008
Table 63 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2003-2008
Table 64 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2003-2008
Table 65 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2003-2007
Table 66 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2003-2007
Table 67 Brand Shares of RTDS/High-strength Premixes 2004-2007
Table 68 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2008-2013
Table 69 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Value 2008-2013
Table 70 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2008-2013
Table 71 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2008-2013
WINE IN SOUTH AFRICA
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
Published data comparisons
SECTOR DATA
Table 72 Sales of Wine by Subsector: Total Volume 2003-2008
Table 73 Sales of Wine by Subsector: Total Value 2003-2008
Table 74 Sales of Wine by Subsector: % Total Volume Growth 2003-2008
Table 75 Sales of Wine by Subsector: % Total Value Growth 2003-2008
Table 76 Sales of Wine by On-trade vs Off-trade Split: Volume 2003-2008
Table 77 Sales of Wine by On-trade vs Off-trade Split: Value 2003-2008
Table 78 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 79 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 80 Volume Sales of Still Red Wine by Price Segment 2003-2008
Table 81 Volume Sales of Still White Wine by Price Segment 2003-2008
Table 82 Volume Sales of Still Rosé Wine by Price Segment 2003-2008
Table 83 Volume Sales of Other Sparkling Wine by Price Segment 2003-2008
Table 84 Sales of Still Red Wine by Grape/Varietal Type 2003-2008
Table 85 Sales of Still White Wine by Grape/Varietal Type 2003-2008
Table 86 Sales of Still Rosé Wine by Grape/Varietal Type 2003-2008
Table 87 Sales of Still Red Wine by Quality Classification 2003-2008
Table 88 Sales of Still White Wine by Quality Classification 2003-2008
Table 89 Sales of Still Rosé Wine by Quality Classification 2003-2008
Table 90 Wine Production, Imports and Exports: Total Volume 2002-2007
Table 91 Wine Exports by Country of Destination: Total Volume 2002-2007
Table 92 Wine Exports by Country of Destination: Total Value 2002-2007
Table 93 Wine Imports by Country of Origin: Total Volume 2002-2007
Table 94 Wine Imports by Country of Origin: Total Value 2002-2007
Table 95 Company Shares of Still Light Grape Wine by National Brand Owner 2003-2007
Table 96 Company Shares of Still Light Grape Wine by Global Brand Owner 2003-2007
Table 97 Brand Shares of Still Light Grape Wine 2004-2007
Table 98 Company Shares of Champagne by National Brand Owner 2004-2007
Table 99 Company Shares of Champagne by Global Brand Owner 2004-2007
Table 100 Brand Shares of Champagne 2004-2007
Table 101 Company Shares of Other Sparkling Wine by National Brand Owner 2003-2007
Table 102 Company Shares of Other Sparkling Wine by Global Brand Owner 2003-2007
Table 103 Brand Shares of Other Sparkling Wine 2004-2007
Table 104 Company Shares of Fortified Wine and Vermouth by National Brand Owner 2004-2007
Table 105 Company Shares of Fortified Wine and Vermouth by Global Brand Owner 2004-2007
Table 106 Brand Shares of Fortified Wine and Vermouth 2004-2007
Table 107 Forecast Sales of Wine by Subsector: Total Volume 2008-2013
Table 108 Forecast Sales of Wine by Subsector: Total Value 2008-2013
Table 109 Forecast Sales of Wine by Subsector: % Total Volume Growth 2008-2013
Table 110 Forecast Sales of Wine by Subsector: % Total Value Growth 2008-2013
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 15 Benchmark Brands – South Africa
Published data comparisons
SECTOR DATA
Table 111 Sales of Spirits by Subsector: Total Volume 2003-2008
Table 112 Sales of Spirits by Subsector: Total Value 2003-2008
Table 113 Sales of Spirits by Subsector: % Total Volume Growth 2003-2008
Table 114 Sales of Spirits by Subsector: % Total Value Growth 2003-2008
Table 115 Sales of Spirits by On-trade vs Off-trade Split: Volume 2003-2008
Table 116 Sales of Spirits by On-trade vs Off-trade Split: Value 2003-2008
Table 117 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 118 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 119 Sales of Other Blended Scotch Whisky by Premium/Super-premium Split 2003-2008
Table 120 Sales of Gin by Premium/Super-premium Split 2005-2008
Table 121 Sales of Vodka by Premium/Super-premium Split 2005-2008
Table 122 Sales of Flavoured vs Non-flavoured Vodka 2003-2008
Table 123 Spirits Production, Imports and Exports: Total Volume 2002-2007
Table 124 Spirits Exports by Country of Destination: Total Volume 2002-2007
Table 125 Spirits Exports by Country of Destination: Total Value 2002-2007
Table 126 Spirits Imports by Country of Origin: Total Volume 2002-2007
Table 127 Spirits Imports by Country of Origin: Total Value 2002-2007
Table 128 Whisk(e)y Production, Imports and Exports: Total Volume 2002-2007
Table 129 Brandy & Cognac Production, Imports and Exports: Total Volume 2002-2007
Table 130 Vodka Production, Imports and Exports: Total Volume 2002-2007
Table 131 Gin Production, Imports and Exports: Total Volume 2002-2007
Table 132 Rum Production, Imports and Exports: Total Volume 2002-2007
Table 133 Liqueurs Production: Total Volume 2002-2007
Table 134 Other Spirits Production: Total Volume 2002-2007
Table 135 Company Shares of Spirits by National Brand Owner 2003-2007
Table 136 Company Shares of Spirits by Global Brand Owner 2003-2007
Table 137 Brand Shares of Spirits 2004-2007
Table 138 Forecast Sales of Spirits by Subsector: Total Volume 2008-2013
Table 139 Forecast Sales of Spirits by Subsector: Total Value 2008-2013
Table 140 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2008-2013
Table 141 Forecast Sales of Spirits by Subsector: % Total Value Growth 2008-2013