Beer remained the fastest-growing and top-selling alcoholic beverage in South Africa in 2004 — with the premium beer segment posting excellent growth of about 18%.
The segment lifted its share of the total liquor sector to more than 80% (by volume in litres) and took away market share from all other drinks, apart from flavoured alcoholic beverages (FABs), according to the recently published Alcoholic Beverage Review 2004.
The latest figures in the review from AC Nielsen — covering the 12 months from June 2003 to May 2004 — show that South Africa’s top five best-selling liquor brands (by value) were all beers owned by SABMiller: Carling Black Label, Castle Lager, Hansa, Castle Milk Stout and Amstel, in positions one to five respectively.
Rounding out the top 10 positions were Smirnoff Vodka at number six, Hunter’s, Klipdrift, Bell’s and Redd’s.
Compared with the year-earlier period, the biggest positive movers in the popularity stakes were Castle Lite, Brutal Fruit, Heineken, Jack Daniel’s, Noordweste Namaqua, Esprit and Windhoek Light, all of which moved up the rankings by more than five positions.
The biggest losers, meanwhile, were Smirnoff Spin, Hunters Dry, Bell’s, First Watch, Gordons Gin, Oude Meester and Amarula, as well as Autumn Harvest, Drostdy Hof, Cellar Cask and Overmeer.
R24-billion annual value
For the alcoholic beverages market as a whole, the annual value through off-consumption outlets (excluding restaurants, bars and other drinking establishments) rose to R24-billion in the year to the end of May 2004, representing 4% growth in volume and a strong 12% increase in value.
However, within the market fortunes were mixed, as beer, brandy, ciders and FABs posted good growth but white spirits and lower-priced wines suffered. After several years of decline, brandy posted 6,1% growth by volume over the 12 months to June 2004, with the value of the market rising to R2,9-billion from R2,3-billion a year earlier.
The strong performance of beer was highlighted by SABMiller’s sales for the nine months to the end of December 2004, as the global brewing giant reported a 4% rise in its beer sales volumes in South Africa.
Helped by strong FAB sales (with brands such as Brutal Fruit and Redd’s), the company was able to boost its share of the total South African liquor market (excluding sorghum beer) to 56,2% (by value).
SABMiller market share
According to the review, SABMiller’s total liquor market share stood at 81,6% by volume, compared with 7,8% for listed wine and spirits producer Distell, and 3,8% for brandhouse, the new company formed by Namibian Breweries, Heineken and Diageo.
Despite an overall decline of 1,1% in local wine sales in 2004 (according to the latest figures from South African Wine Industry Information and Systems), Distell fared well thanks to robust brandy sales, FABs and its premium, high-priced wine brands. Four of the top five best-selling high-priced wine brands in the country in 2004 are owned by Distell — Nederburg, Graca, Grunberger and Chateau Libertas, with number five, Douglas Green, owned by DGB.
Three of the top five brandies by volume are also in the Distell stable — Richelieu and Klipdrift Export at one and two, and Viceroy at four. Distell’s Oude Meester and Limosin brandies featured at six and seven, respectively. By value, the top three brandies are all Distell’s — Richelieu, Klipdrift Export and Viceroy.
Meanwhile, brandhouse enjoyed success with its Heineken, Windhoek and Windhoek Light brands gaining ground from other spirits and moving up in the popularity stakes. Windhoek Lager was the 13th-most-popular liquor brand in the year, Heineken came in at number 31 and Windhoek Light at 40. Its Bertrams VO brandy was ranked fifth in sales by volume and by value.
Furthermore, brandhouse dominated the whisky category, which grew by 6% by volume for the 12 months to the end of May 2004 after little growth over the past few years. Its Bell’s and J&B brands were the top-ranked whiskies by value for the year. — I-Net Bridge