E-Malt.com News article: 1553

South African Breweries Ltd (SAB), the South Africa based subsidiary of the world's second largest brewer SABMiller, announced that Miller Genuine Draft and Pilsner Urquell are now anticipated to collectively outsell SAB's former import, Heineken, in their first year of sales in South Africa. SAB's brewing and distribution arrangement with Heineken was terminated earlier this year as a result of the acquisition of the Miller Brewing Company. Heineken was replaced by the recent introduction of Miller Genuine Draft and Pilsner Urquell.

Heineken has been on sale in South Africa for ten years. Miller Genuine Draft and Pilsner Urquell were said to be performing ahead of expectations. With compound growth of 16%, the premium beer segment is growing faster than the mainstream market where growth has historically been below 4%. Whilst SAB has over 98% of the overall beer market in South Africa, it has less than 75% of the premium sector, which currently represents less than 5% of South Africa's total beer market.

SAB Managing Director Tony Van Kralingen, said: "Despite SAB holding 98% of the market in South Africa, we have only 50% of the overall liquor market which we share principally with brandy, wine and sorghum beer. Over the medium term we see opportunities to increase this figure to nearer 60% through the introduction of new products and a shift from higher alcohol drinks into beer.


12 September, 2003