Cape Town - Brandhouse Beverages one of South Africa's largest alcoholic beverages companies has expanded its share of South Africa's overall alcoholic beverages market by 0.5 percentage points during its first year in existence, to 9.9% as at end-June 2005 from 9.4% a year earlier.
Brandhouse includes brands such as Smirnoff, Bell's, J&B, Johnnie Walker, Heineken, Windhoek, Guinness, and many others.
This follows its start-up in July 2004 via the three-way merger of the local interests of global drinks giants Diageo, Heineken and Namibian Breweries.
CEO Simon Litherland said that the company's spirits, beer and flavoured alcoholic beverages (FABs) brands were each growing their shares in their own particular market segments, expanding sales faster than the average category growth.
Brandhouse claims a 33% share of South Africa's premium alcoholic beverage market, which grew at a brisk 18.1% pace for the year to end-June 2005.
Favourable macroeconomic conditions and rising disposable incomes in South Africa, leading to higher consumer spending on alcoholic beverages and trading-up to more premium brands-so-called "premiumisation" - has bolstered Brandhouse's brands.
For the new 2005-06 financial year, the CEO is expecting continued strong growth of over 10% y/y in the premium market, amidst an intensification of competition.
The company will also be launching a few new drinks into the local market and new packaging in the months ahead.
Brandhouse was also open to considering the purchase of a South African wine brand or two, he noted, given their rising reputation globally and the fact that parent Diageo was no stranger to wine.
According to the CEO, the company's performance in the first year had met its own high targets, with turnover growing 11% to reach the R3bn mark.
The group already claimed a very strong market share in spirits, and Brandhouse's scotch brands were particularly strong performers.
Competition had been tough in the beer market, Litherland noted, as the group took on SABMiller.
Overall beer category growth had been between 2-3%, but premium beer growth had been 6%, and the group had taken market share with Heineken, while re-positioning Windhoek for future strong growth, he revealed.
There had also been a good deal of competition in South Africa's R2.3bn ready-to-drink category over the past year, the CEO said.
However, the category was growing fast, at 18% (according to AC Nielsen data), and Smirnoff Spin and Smirnoff Triple Spin had recorded growth ahead of the average.
For the new year, Brandhouse has already launched Smirnoff Storm, a new addition to its ready-to-drink Smirnoff series, and in a few months' time will be bringing in a new Jose Cuervo Classico (silver) tequila.
This week the group will be introducing Heineken beer in unique new 650- millilitre "big pack" bottles, taking on SABMiller's popular 750ml big packs of Castle and Carling.