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The Liquor Industry
BY Nina Shand
South Africa
13 September 2017
R 14 400.00 (ZAR)  
estimated $ 1 127.52 (USD) *
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The Liquor Industry


The South African liquor industry, which includes the manufacture, wholesale and retail of beer, wine, spirits and flavoured alcoholic beverages, was valued at an estimated R106.1bn in 2016. Beer sales dominated the sector, accounting for 56.1% of the value of liquor sales and nearly 80% of the volume. South Africa’s alcohol consumption rate has climbed in recent years making the country the third-largest consumer of alcohol in Africa and according to the World Health Organisation (WHO), the 19th-biggest in the world.


Merger Between SABMiller and AB InBev


The much anticipated merger between South African Breweries (SABMiller) and Anheuser-Busch InBev (AB InBev) was completed in October 2016. InBev AB paid R1.9-trillion for SABMiller, forming a new holding company, Newco. Conditions imposed on AB InBev by Competition Authorities include an investment of R1bn into the provision of support to 800 small, emerging farmers, the retention of the current 6,000 employees for a period of five years and the disposal its 26.4% stake in Distell.


Changes in the Retail Sector


Over the last decade the country’s largest supermarket chains have increased their dominance in the liquor sector. The expansion of Spar’s TOPS, Shoprite/Checkers’ Liquor Shop, P’nP Liquor, Woolworths Wine and Spirit Stores and Massmart’s Game Liquor has meant that an estimated 70% of independent liquor retailers have already shut down and approximately 60,000 jobs have been lost.


Report Coverage


The detailed report on the South African Liquor industry provides statistics for the sector, describes current conditions and trends, and discusses the impact of new regulations and other factors influencing the success of the sector. Included in the report are profiles for 32 producers and wholesalers of alcoholic beverages and 12 retailers. Also profiled are five distributors including wine specialists, Cool Wines, Vinimark Trading and Wines of the World Distributors.


Page
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 19
4.1. Local 19
4.1.1. Corporate Actions 25
4.1.2. Regulations 26
4.1.3. Enterprise Development and Social Economic Development 30
4.2. Continental 32
4.3. International 36
5. INFLUENCING FACTORS 40
5.1. Economic Environment 40
5.2. Rising Operating Costs 40
5.3. Illegal and Illicit Alcohol 41
5.4. Advertising 42
5.5. Technology, Research and Development (R&D) and Innovation 43
5.6. Labour 45
5.7. Cyclicality 49
5.8. Ethical Trade Initiatives 49
5.9. Environmental Concerns 50
6. COMPETITION 51
6.1. Barriers to Entry 52
7. SWOT ANALYSIS 53
8. OUTLOOK 54
9. INDUSTRY ASSOCIATIONS 55
10. REFERENCES 56
10.1. Publications 56
10.2. Websites 57
APPENDIX 1 59
Black-Owned Wine Brands 59
APPENDIX 2 61
South African Liquor Brands Owners Association Members (SALBA) 61
COMPANY PROFILES - PRODUCERS/WHOLESALERS OF LIQUOR 62
BACKSBERG ESTATE CELLARS CC 62
BERFIN WORLDWIDE (PTY) LTD 64
BOLAND WINGERDE INTERNASIONAAL LTD 66
DE WAAL WINES (PTY) LTD 68
DE WETSHOF ESTATE (PTY) LTD 70
DGB (PTY) LTD 72
DIAGEO SOUTH AFRICA (PTY) LTD 75
DISTELL GROUP LTD 77
EDWARD SNELL AND COMPANY (PTY) LTD 81
EXCELSIOR MARKETING CC 84
FAIRVIEW WINES (PTY) LTD 86
GRAHAM BECK ENTERPRISES (PTY) LTD 88
KLEINE ZALZE WINES (PTY) LTD 91
LANZERAC ESTATE INVESTMENTS (PTY) LTD 93
LUSAN PREMIUM WINES (PTY) LTD 95
MORGENSTER (1711) (PTY) LTD 97
NCP ALCOHOLS (PTY) LTD 99
NEWSHELF 1167 (PTY) LTD 102
ORANJERIVIER WYNKELDERS CO-OPERATIVE LTD 104
P C KELDERS (PTY) LTD 107
PERNOD RICARD SOUTH AFRICA (PTY) LTD 109
ROBERTSON KOOPERATIEWE WYNMAKERY LTD 111
RUSTENBERG WINES (PTY) LTD 113
SIMONSIG LANDGOED (PTY) LTD 115
SOUTH AFRICAN BREWERIES (PTY) LTD (THE) 117
SPIER FARM MANAGEMENT (PTY) LTD 120
STELLENBOSCH VINEYARDS (PTY) LTD 122
TIGER BRANDS LTD 124
VAN LOVEREN VINEYARDS (PTY) LTD 129
VERGELEGEN WINES (PTY) LTD 131
WARSHAY INVESTMENTS (PTY) LTD 133
ZANDWIJK WINES (PTY) LTD 135
COMPANY PROFILES – RETAILERS 137
BEADICA 276 CC 137
BIG DADDY'S LIQUORS (PTY) LTD 139
DIAMONDS DISCOUNT LIQUOR (PTY) LTD 141
LIQUOR CITY-THE LIQUOR BOYS CC 144
MASSMART HOLDINGS LTD 150
PICARDI HOTELLE (PTY) LTD 156
PICARDI LIQUORS (PTY) LTD 159
PICK N PAY STORES LTD 161
ROBINSON LIQUORS (PTY) LTD 166
SHOPRITE HOLDINGS LTD 169
SPAR GROUP LTD (THE) 173
WOOLWORTHS (PTY) LTD 178
COMPANY PROFILES – DISTRIBUTORS 181
BRANDHOUSE BEVERAGES (PTY) LTD 181
COOL WINES (PTY) LTD 183
REALLY GREAT BRAND COMPANY (PTY) LTD (THE) 185
VINIMARK TRADING (PTY) LTD 188
WINES OF THE WORLD DISTRIBUTORS (PTY) LTD 191