The Manufacture, Wholesale and Retail of Beverages in Mozambique investigates the local beverages market, recent developments and factors influencing the success of the formal sector. The report profiles five companies, including CDM which has a virtual monopoly in the commercial beer brewing segment. The company, which employs 1,400 people and generated revenue of approximately US$300m in 2014, produces over 2 million hectolitres (hl) of beer per annum. Also profiled is Coca-Cola Sabco Mozambique which has market share of approximately 85% in the carbonated soft drinks segment.
The Manufacture, Wholesale and Retail of Beverages in Mozambique
This report focuses on the beverages industry in the Republic of Mozambique, one of the fastest growing frontier economies on the African continent. Mozambique’s beverages industry is characterised by a small number of large companies and a large number of micro-entrepreneurs. The value of the formal beverages industry is estimated at US$600m, but reliable statistics for the informal sector are not available.
The informal beverages sector is unregulated and formal manufacturers have to contend with cheap imports, home brews, liquor that enters the market illegally and widespread corruption. Inadequate infrastructure, poor service delivery, erratic power and water supply, high poverty levels, as well as a shortage of skilled labour are all barriers in the manufacturing, wholesale and retail sectors.
Investment in the Sector
Despite the country’s notoriously challenging operating environment, the appetite for risk has not abated and prospective investors appear eager to tap into Mozambique’s relatively underdeveloped, but rapidly expanding soft drink and alcoholic beverages market. Beer maker Cervejas de Moçambique (CDM) has made substantial investments in capacity expansion, with major extensions at its three breweries scheduled to be completed within the next three years. The company signalled its intention of entering the spirits sub-sector with its acquisition of Lusovinhos in December 2013 and British multinational, Diageo established a spirits production facility in the country in 2014.
Table of Contents
|2.||DESCRIPTION OF THE INDUSTRY||1|
|3.||SIZE OF THE INDUSTRY||8|
|4.||STATE OF THE INDUSTRY||12|
|5.3.||Socio-Political and Socio-Economic Environment||26|
|5.5.||Rising Input Costs||28|
|5.6.||Technology, Research and Development (R&D) and Innovation||28|
|5.10.||Branding, Advertising and Marketing||32|
|5.11.||Informal and Illegal Trade in Beverages||32|
|5.12.||Health and Safety Concerns||33|
|6.1.||Barriers to Entry||34|
|Cervejas De Mozambique SA||41|
|Coca-Cola Sabco Mozambique SARL||43|
|DADTCO Mandioca Mozambique Lda||45|
|Fabrica de Licores de Mozambique Lda||49|
|Massmart Holdings Ltd||50|
|Mopani Internacional Lda||55|
|Refrigerantes Vumba Lda||56|
|Shoprite Holdings Ltd||58|
|Sociedade de Aguas de Mozambique Lda||64|
|SPAR Group Ltd (The)||65|
|Swissta Mozambique Lda||71|
|Varun Beverages Ltd||72|
|Wine Lovers Maputo||73|
|Woolworths (Pty) Ltd||74|
|Yaafico Industrial Lda||77|