/ 10 June 2008

Iconic Dutch brand Grolsch joins SAB portfolio

South African Breweries (SAB) confirmed on Tuesday that South Africa will be the first country outside Europe to bring to market Dutch beer Grolsch Premier Lager following the acquisition of Royal Grolsch by SABMiller four months ago.

Grolsch will be available in South Africa in its 450ml swing-top bottle and the 330ml flat-sided crown top through on- and off-trade premises from June 23. Both formats will be imported from the Grolsch brewery in The Netherlands.

Earlier this year, SABMiller announced its intention to move Grolsch into South Africa as part of its strategy to build on premium-sector growth in key emerging beer markets. The release into South Africa comes three months ahead of initial expectations.

“The South African market stood out as an obvious first choice to launch the brand for SABMiller,” said Tony van Kralingen, managing director of SAB. “South Africa has one of the fastest-growing consumer markets for premium beer. Our existing distribution and sales network makes Grolsch’s entry into South Africa, and its ready and wide accessibility, much easier.”

Van Kralingen added that given the rapid changes in consumer demand and a changing economic landscape in South Africa, the brewer had placed an increasing and more concentrated focus on innovation. The result is an increased capacity to introduce new brands, brand extensions and innovations into the local market.

“Introducing Grolsch now is part of our responsiveness to changing consumer preferences and we have enormous faith in the potential of this brand’s appeal to a growing premium-drinking consumer base,” said Anne Stephens, SAB’s head of marketing innovation.

She said SAB believes there is a gap in the premium sector as evidenced by double-digit growth in the premium beer sector over the past few years.

She added that there had been noticeable shifts in premium beer preferences during the last year in particular. Hansa Marzen Gold reached record volumes in a short space of time after its launch; Castle Lite grew volumes to the point where it is now SAB’s biggest-selling premium brand, while Peroni volumes almost doubled in the last year.

The introduction of a global iconic brand like Grolsch to the SAB portfolio is expected to further accelerate premium market growth in South Africa.

Ronald van Amerongen, international brand director for Grolsch, said: “The launch of Grolsch in South Africa is an exciting first step in SABMiller’s global ambition for the brand. South Africa is the original home market of SABMiller and is a fast-growing consumer market for premium beer. This launch is the first of many, as we continue to develop Grolsch’s presence around the world.”

Supported by a major marketing investment, Grolsch will be positioned in South Africa as a top-end alternative in the premium beer sector, building on the brewing heritage and master craftsmanship established almost four centuries ago. The beer will be selectively launched in premium bars and restaurants across the country initially.

The only beer to bear the Dutch Royal Family Seal of Approval, Grolsch is the most prestigious beer in The Netherlands and in other key beer-loving markets around the world, concluded SAB. — I-Net Bridge