E-Malt.com News article: 2475

South Africa, Johannesburg: Brewers Heineken, Diageo and Namibia Breweries have finalised an agreement for a joint marketing, distribution and sales venture in South Africa, the firms announced on April 8. South Africa's competition authorities approved the deal last month. The deal is set to drive Namibia Breweries' assault on SABMiller's dominance of the South African beer market, according to Reuters.

SABMiller has a 98 % share of that market. Diageo and Heineken took an effective 28.9 % stake in Namibia Breweries in mid-2003 after Heineken decided not to renew SABMiller's licence to brew its trademark green-labelled beer in South Africa. NBL plans to brew Heineken in Namibia.

The move laid the ground for a battle for market share in South Africa's premium beer sector, which some analysts say is growing by around 16 % a year. Heineken and Namibia Breweries are focused on beer, while Diageo is the world's biggest distilled drinks firm and owns Guiness stout. NBL's Windhoek Lager is one of the leading premium brands in South Africa.

The groups said Simon Litherland, managing director of GuinnessUDV in South Africa, had been appointed managing director of the as yet unnamed new joint venture.


09 April, 2004