E-Malt.com News article: South Africa: South African Breweries (SAB) has reported flat volume growth in 2007

South African Breweries (SAB) has reported flat volume growth in SA although it lost Amstel last March, Business Day reported April 17. The licence to brew Amstel, which accounted for 9% of SA sales, was yanked by Heineken and the beer is now fully imported. SAB initially expected to gain back 4,5% of its Amstel share and the launch of Hansa Marzen Gold just after SA ran out of Amstel was well received. Other brands in the SAB stable also benefited, such as Castle Light. A fuller picture should emerge when full year results are released next month.

Heineken did not get the brew back into SA until October. The move was costly -- importing full bottles cannot be cheap -- and now there is a R4.7bn investment by it and partner Diageo in a brewery.

Just how much market it commands is not clear, but it cannot be more than 10%, as SAB had 98% before losing Amstel. But SAB doesn't seem worried. The brewery will be up only at the end of next year, and SAB has proven its ability to hold on to market share.


18 April, 2008