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Beer battle hots up

Johannesburg - In the wake of a somewhat equivocal Advertising Standards Authority ruling on a dispute between the country's battling brewers, Brandhouse Beverages and South African Breweries (SAB) are slugging it out again.

Brandhouse rushed out a 295-word press announcement that it has gained more market share from SAB in the key premium beer battleground.

Breweries quickly issued an 800-word response that Castle Lite was the country's most popular premium beer, increasing its share since last December while brandhouse's Amstel lost ground.

The brandhouse story was that it has gained 2.6% in market share, bringing its total share to 12.8% due to "substantial growth" in volume sales across Heineken, Amstel and Windhoek.

SAB fell a corresponding amount to 87%, a significant drop from the roughly 96% it used to enjoy before brandhouse came on the scene. The source for this information is AC Nielsen national off-premise data for the three months ended June.

Off-premise sales are through retail outlets, accounting for 60% of the total, and exclude taverns and restaurants and the like.

SAB, using the same source, points out that Castle Lite's share had risen from 6.3% to 6.7% since December, while Amstel's share fell by the same amount from 7% to 6.6%.

Much of the credit is given to Castle Lite's Extra Cold campaign, now reinforced by a new wave, Cold Blitz. Uniquely, Castle Lite introduced a temperature sensitive thermochromatic indicator on all 330ml and 660ml bottles which shows when the beer is at perfect drinking temperature.

Thousands of sub-zero extra cold fridges have been placed in taverns, restaurants and bars.

SAB previously brewed and marketed Amstel in SA, building its share to around 9%, before Heineken International transferred the licence to brandhouse.

The total South African beer market grew 2% in the last 12 months, 7.3% in the last three months and 12.3% in June - 2010 FIFA World Cup month.

The two brewers have been at it, hammer and tongs, since brandhouse launched a returnable 660ml bottle for Amstel some weeks ago. SAB claimed it was misleading the public, and tried to correct the "misconceptions" in its advertising, whereupon brandhouse complained to the ASA. Both claimed to be satisfied with the ruling, which rejected eight brandhouse complaints, but upheld one.

Brandhouse Beverages is a joint venture between Diageo, Heineken International and Namibia Breweries formed in 2004. With its unrivalled portfolio of liquor brands, including Johnnie Walker, J&B, Smirnoff and Bell's, it is now the second largest alcohol beverage company in South Africa by value share.

 - Fin24.com
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