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Cape Town - South African Breweries (SAB) has been dethroned as the market leader in the country's premium beer market.
The Brandhouse joint venture, which distributes Heineken, Amstel and Windhoek beers in South Africa, now holds the top spot in the segment with a 57.7% market share, according to market researcher Nielsen.
This has been achieved principally by strong growth in the sales of Brandhouse's Heineken and Amstel.
SAB distributed Heineken until 2003 and Amstel until 2007.
SAB's dominance in the overall beer market has also been somewhat eroded - to just under 90%.
At the end of September, Brandhouse had a market share of just less than 11% of the overall beer market, according to Brandhouse spokesperson Priscilla Singh.
In January 2008 Brandhouse had just over 8% of the overall beer market, and more than 45% of the premium beer market. In the premium beer market Amstel holds 28.8%, Heineken 13.6% and Windhoek 14.5%.
According to SAB, Castle Lite is the largest single brand in the premium market, but the size of its market share has not been disclosed.
In recent years the premium beer market has rapidly expanded and it now comprises 18% of the overall beer market.
When Amstel left the SAB stable its sales fell sharply because Brandhouse had to import the product. SAB had previously brewed Amstel itself. The Amstel Brewery, which opened in October, is expected to ensure the recapture of its former market share.
According to Singh, Heineken's strong growth, which has exceeded all expectations, has contributed greatly to Brandhouse's rising market share.
It is this brand's performance that should cause SAB to sit up and take note, said Dirk Kotzé, a portfolio manager at Coronation Fund Managers.
Kotzé said Heineken is popular in the emerging market. Because 90% of all beer is drunk in shebeens, that is where the battle for the hearts of premium beer drinkers will take place.
Kotzé wondered whether the shift in the premium market indicated that SAB's recent strategy for this part of the market has failed.
SAB launched a number of premium beers with the idea of swamping out the others, he said. This strategy may have failed because it could've confused consumers who, after tasting the new beers, simply returned to an old familiar brand like Amstel.
- Sake24.com
For more business news in Afrikaans, visit Sake24.com.