Who Owns Whom

The Manufacture and Wholesale of Non-Alcoholic Beverages in South Africa 2022

Stephen Timm | South Africa | 09 February 2022

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R 13 500.00(ZAR) estimated $ 851.84 (USD)*

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Report Coverage

This report focuses on the manufacture and wholesale of non-alcoholic beverages which include carbonated soft drinks, bottled water, energy drinks, sports drinks, cordials and concentrates, health and functional beverages and dairy and fruit blends. It includes comprehensive information on the size and state of the industry, the effect of the pandemic, sugar tax and other influencing factors, developments and corporate actions. There are profiles of 27 companies including major players such as Pioneer Foods, RFG and Clover, which dominate fruit juice production, Coca-Cola Beverages, which dominates the soft drink market, and niche players such as Red Bull, BOS and Pure Soda.

The Manufacture and Wholesale of Non-Alcoholic Beverages in South Africa

Beverage sales, which were negatively affected by the pandemic and associated liquor restrictions, began to recover in 2021. Producers report that energy drinks and functional (health) drinks are experiencing significant growth since the onset of the pandemic, while fruit juice exports continue to see marked growth despite challenges such as port delays and market access. The sugar tax has affected soft drink consumption and is likely behind significant price increases between January 2017 and November 2021.

Pandemic Recovery

While food and non-alcoholic beverages were considered essential industries and production was not interrupted during lockdown, many beverage producers’ sales were affected by the decline in the number of gatherings and events. Sales of mixers used with alcoholic beverages fell during the four liquor bans. While volumes and sales recovered sharply in 2021, some manufacturers say that production only recovered to pre-pandemic levels towards the end of 2021.

Trends

Sales of energy drinks are forecast to grow significantly faster than carbonated drinks. There is increasing demand for low or no-alcohol drink substitutes, low calorie and low sugar options, health drinks and for sustainable packaging, resulting in the launch of fruit juice blends in returnable glass bottles and canned water.

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 6
2.3. Size of the Industry 7
2.4. Key Success Factors and Pain Points 10
3. LOCAL 11
3.1. Key Trends 12
3.2. Notable Players 14
3.3. Trade 15
3.4. Corporate Actions 20
3.5. Regulations 21
3.6. Enterprise Development and Social Economic Development 23
4. AFRICA 26
5. INTERNATIONAL 33
6. INFLUENCING FACTORS 40
6.1. COVID -19 40
6.2. Economic Environment 41
6.3. Labour 42
6.4. Environmental Issues 45
6.5. Technology, Research and Development (R&D) and Innovation 47
6.6. Input Costs 48
6.7. Health and Dietary Considerations 50
6.8. Tax on Sugar-Sweetened Beverages 50
6.9. Cyclicality 52
6.10. Electricity and Water Supply Constraints 52
7. COMPETITIVE ENVIRONMENT 53
7.1. Competition 53
7.2. Ownership Structure of the Industry 53
7.3. Barriers to Entry 54
8. SWOT ANALYSIS 55
9. OUTLOOK 56
10. INDUSTRY ASSOCIATIONS 56
11. REFERENCES 57
11.1. Publications 57
11.2. Websites 58
APPENDICES 60
Appendix 1 - Summary of Notable Players 60
COMPANY PROFILES 63
Adcock Ingram Holdings Ltd 63
Big Save Distribution Centre (Pty) Ltd 68
Big Save Liquor Waltloo (Pty) Ltd 70
BOS Brands (Pty) Ltd 72
Clover S A (Pty) Ltd 74
Coca-Cola Beverages Africa (Pty) Ltd 79
Coca-Cola Peninsula Beverages (Pty) Ltd 82
Coca-Cola Sabco (Pty) Ltd 85
Ekhamanzi Springs (Pty) Ltd 88
Kingsley Beverage (Pty) Ltd 90
Lactalis South Africa (Pty) Ltd 93
Little Green Beverages (Pty) Ltd 96
Long4Life Ltd 99
MoFaya Beverage Company (Pty) Ltd 103
Nestle (South Africa) (Pty) Ltd 105
Pioneer Foods Groceries (Pty) Ltd 109
Pura Soda Beverage Company (Pty) Ltd 111
PVM Nutritional Sciences (Pty) Ltd 113
RCL Foods Ltd 115
Red Bull South Africa (Pty) Ltd 120
RFG Foods (Pty) Ltd 122
Soda King Franchising CC 127
South African Breweries (Pty) Ltd (The) 129
Suntory Beverage and Food South Africa Ltd 132
Tiger Consumer Brands Ltd 134
Twizza (Pty) Ltd 138
Ultimate Sports Nutrition (Pty) Ltd 140