Alcoholic drinks sales record steady performance in 2012
Total volume sales for alcoholic drinks experienced steady growth in 2012, showing an improvement in growth in comparison to the previous year. Alcoholic drinks recorded double digit value growth, as a result of growing volume sales as well as rising unit prices. Whilst alcohol is considered a “non-essential” or luxury item, consumers may trade down to cheaper alcoholic beverages rather than dropping out of the category altogether.
Duty hikes and rising costs boost prices in 2012
Increased excise duties on alcoholic drinks, as well as rising costs of raw materials, electricity and fuel, all resulted in unit price increases within alcoholic drinks. This makes the products more expensive, and some lower-income consumers may have to reduce consumption or switch to cheaper alternatives. The government hopes that increased taxes will help its efforts to curb alcohol abuse.
South African Breweries Ltd continues to lead South African alcoholic drinks in 2012
South African Breweries Ltd continued to enjoy its leading position within South African alcoholic drinks, with 63% of total volume sales in 2012. However, it is experiencing increased competition from Brandhouse Beverages. Its Sedibeng brewery, opened in March 2010, means that previously imported beer brands are now brewed locally and are encroaching on South African Breweries Ltd’s leadership within domestic premium lager. Distell Group, another local player, held third position overall with its leadership of cider/ perry and wine.
Leading supermarket retailers continue to expand their specialist liquor outlets in 2012
Specialist retailers continued to account for the vast majority of alcoholic drinks volume sales in South Africa. However, while these chained outlets used to be companies that operated solely within this market, South Africa’s leading supermarket retailers have introduced their own brands and are focusing on increasing the outlet numbers of their specialist liquor stores. Spar Groups’ Tops is rapidly expanding and is usually located next to one of the group’s Spar supermarkets. Shoprite Holdings’ Liquor Shop is a smaller chain, found attached to either a Shoprite or Checkers supermarket. Pick ‘n Pay Retailers has its own liquor stores located next to a number of its supermarket outlets. In May 2010 Woolworths introduced their Woolworths Wine & Spirit stores, which stand as separate concession stores within their Woolworths outlets.
Strong volume sales should continue over the forecast period
During the review period South Africa experienced single digit volume growth and double digit value growth due to increased unit prices during the economic downturn. Volume growth should remain stable, showing consistent development over the forecast period.
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The Alcoholic Drinks in South Africa market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Production, imports by origin, exports by destination
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Alcoholic Drinks in South Africa?
- What are the major brands in South Africa?
- Have there been any alcoholic drinks legislative changes over the past 12 months?
- How is the alcoholic drinks industry affected by the recession?
- What is consumed more; beer, wine or spirits?
- What have been the key trends seen in new product developments?
- Do alcoholic drinks consumers want value for money or added value?
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This industry report originates from Passport, our Alcoholic Drinks market research database.