Alcoholic drinks achieves conservative volume growth in South Africa
The alcoholic drinks market in South Africa achieved conservative total volume growth in 2014; however, this was an improvement on the previous year. This was due to the slight improvement in the growth of beer, the biggest category within alcoholic drinks in total volume terms. Sales remained fairly stable during the course of the year, and peaked during the December festive season. The weakening rand resulted in South Africa being a popular tourist destination, stimulating sales growth during the summer months.
Flavour innovation takes hold across a number of categories within alcoholic drinks
Innovation is key to stimulating consumers’ interest within alcoholic drinks, thus driving volume growth. However, with the current economic climate being at a low, with rising costs of raw materials, electricity and fuel, not to mention rises in excise duties, many manufacturers chose to capitalise on the strength of existing brands when it came to innovation. Within beer the launch of Castle Lite Lime was seen, expanding the new flavoured/mixed lager category. Within cider Distell Group’s Savanna Angry Lemon was launched, and within spirits there were a number of vodka brands which increased their flavoured vodka offerings during the course of the review period.
The South African Breweries continues to lead alcoholic drinks in South Africa
The South African Breweries continued to enjoy the leading position within alcoholic drinks in South Africa in 2014, with a 65% share of total volume sales. Distell Group and Brandhouse Beverages held second and third positions respectively; however, they trailed well behind The South African Breweries. This company’s leading position can be attributed to its dominance of beer in South Africa, the biggest category within alcoholic drinks. Distell Group has a strong presence in spirits, wine and cider, whereas Brandhouse Beverages has a strong presence in spirits and beer.
The leading supermarket retailers continue to expand their specialist liquor outlets
Specialist retailers continued to account for the vast majority of volume sales of alcoholic drinks in South Africa in 2014. However, whilst independent outlets used to be the only companies operating within this channel, South Africa’s leading supermarket retailers have now introduced their own brands, and are focusing on increasing the number of their specialist liquor stores. Spar Group’s Spar Tops continues to expand, and these outlets are usually located next to one of the group’s Spar supermarkets. Liquor Shop from Shoprite Holdings is a smaller chain, with outlets found attached to either a Shoprite or Checkers supermarket. Pick n Pay has its own liquor stores located next to a number of its supermarkets. In May 2010 Woolworths introduced its Woolworths Wine & Spirits stores, which stand as separate concession stores within its Woolworths outlets. In more recent years, Massmart’s mixed retailers brand Game introduced Game Liquor concession stores.
Volume growth will be curbed by rising costs over the forecast period
Volume growth will continue to be on the low side over the forecast period, as rising costs in terms of both raw materials as well as excise duties will continue to push up prices over the forecast period. Labour unrest is a problem that will not see a quick-fix solution, and thus GDP and the strength of the rand will continue to be repressed. This, coupled with the increasing costs of fuel, as well as power supply shortages (due to Eskom being unable to meet the demand for electricity), mean that production will be interrupted, again contributing to price increases and reduced consumer spending within the market over the forecast period.
Samples (FAQs about samples):
View full Alcoholic Drinks Report here
Delivery: Files are delivered directly into your account within a few minutes of purchase.
Discover the latest market trends and uncover sources of future market growth for the Alcoholic Drinks industry in South Africa with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Alcoholic Drinks industry in South Africa, our research will save you time and money while empowering you to make informed, profitable decisions.
When you purchase this report, you also get the data and the content from these category reports in South Africa for free:
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?
Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This industry report originates from Passport, our Alcoholic Drinks market research database.