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SAB downplays Brandhouse froth

May 26 2010 11:34 Tony Koenderman

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Johannesburg  - South African Breweries denies there was anything underhand in its communications with retailers about the new returnable bottle for Amstel Lager, marketed by rival liquor company Brandhouse.

It says it was merely explaining that the Amstel "quart" bottle contains 12% less beer than the old bottle – "part and parcel of a tradition of helping small businesses".

Earlier, Amstel launched a national advertising campaign - Ask Why? -  in support of its R10 recommended price in bars. Other premium beers sell for about R12 for a larger bottle.

Brandhouse, which markets and distributes Amstel, Heineken and Windhoek premium beers, says SAB is trying to persuade taverners to sell Amstel at more than R10 for the 660ml returnable bottle. If someone tries to charge you more, says Brandhouse advertising, "Ask why".

In a statement, SAB said its communication with retailers "has been designed to inform the market on the changes in Amstel's new product, after Brandhouse downsized their quart bottle. At first glance, the bottle is similar in size and geometry to the long-standing 750ml package, but it contains 12% less beer.

"The recent conversations with retailers explained how Amstel has changed, and how the maths presented by Brandhouse is misleading. Simply put, SAB's assertion is that if the retailer sells an Amstel quart bottle for R10, the retailer will be losing profit."

SAB strategy director Harald Harvey said: "SAB has long worked with retailers to assist them in understanding the economics and cash flow of their businesses but we in no way make the decisions for them on selling our products or those of any competitor.

"SAB is in no way setting a price for Amstel. Retailers determine their own price. What we have done is to show retailers how a price point affects their margins. We subscribe fully to the idea that competition, when allowed to flourish unimpeded by anticompetitive practices, results in greater choice, innovation, higher quality and lower prices for consumers."

SAB said it is committed to becoming a model competitor in 21st-century South Africa and has adopted a number of key principles to ensure it competes in a progressive, principled, capable and passionate manner.

 - Fin24.com

 

 

 

 
 
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