Spirits in South Africa

PROSPECTS

Gin still enjoying revived attention brought about by craft gin

Gin remained the most dynamic category within spirits in 2018 and it is showing no signs of slowing down, with further strong growth projected for the forecast period. Millennials are driving demand for craft gin, and indirectly demand for mainstream gin too.

Brandy suffers a major setback due to several price increase

Brandy suffered a major setback in 2018 as players had to increase their prices significantly. Brandy began to recover in 2017 after years of stagnation.

Could rum be the next trendy drink in spirits?

During 2017 Savanna introduced Savanna Blackbeard which was a cider drink infused with rum. This marked the start of rum rising out of its slump.

COMPETITIVE LANDSCAPE

Distell dominates gin with Gordon’s and Old Buck

The competition for share in gin intensified during the review period with Distell Group ultimately winning the race. Its Gordon’s and Old Buck brands did exceptionally well during the review period, with both recording strong double-digit growth in total volume terms in 2018.

Cognac, an aspirational product enticing millennial

Despite the challenging economic conditions, cognac saw significant total volume growth over the review period and in 2018, albeit from a low base. This demand is mainly being supported by young professionals returning to the townships and looking to demonstrate their success by sharing a bottle of Hennessy VS or Bisquit with their friends.

Cream-based liqueurs revitalised by Amarula Vanilla Spice

Distell launched its new Vanilla Spice flavour of cream-based liqueurs under its dominant Amarula brand in 2018. After years of stagnation, cream-based liqueurs saw solid growth in 2018, with this being largely down to the popularity of this new product development.

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