An analysis of malt beer in South Africa
Despite weaker consumer demand, SABMiller has sold 3% more beer globally in the first half of its 2012 financial year. Against this backdrop, we take a look at an analysis of malt beer in South Africa, presented by BMI Research (www.bmi.co.za)
Malt beer is a well-entrenched beverage in the South African market, and currently holds the largest volume share within the alcoholic sector. Volumes increased by substantial 9.0% during the base year, this being a exceptional performance for the category. This is on the back of a decline the previous year. The recession put the category under pressure.
Although the majority of malt beer is packaged into glass bottles, after the FIFA Soccer World Cup in 2010 plastic bottles have seen increasing popularity at social and sports functions. Glass was deemed dangerous, especially at sports events, and so producers began selling the plastic alternative. This new launch initially received a mixed reception, but it is expected to continue to grow slowly in future.
Malt beer maintains a larger contribution to GDP than most other beverage categories. For 2010, malt beer comprised 1.5% of GDP for the country.
Pricing for the category has traditionally seen healthy increases year on year, having only slowed down somewhat during the 2007/2008 season. Since 2009, good increases have been recorded once again, with 2010 (14.3%) noting the second highest increase across the historical analysis for malt beer.
Find out more the Annual Market Quantification (April 2011) presented by BMI
Wendy Smith
Please feel free to make comments or raise new issues by emailing the editor
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