Who Owns Whom

Beverages Industry Mozambique

The Beverages Industry in Mozambique 2019

Stephen Timm | Mozambique | 23 October 2019

The Beverages Industry in Mozambique 2016

Carole Veitch | Mozambique | 25 January 2016

Enquire about this report

Introduction

This report focuses on the beverages industry in one of the most promising frontier economies on the African continent, the Republic of Mozambique. Despite the country’s challenging operating environment, investors appear eager to tap into Mozambique’s relatively underdeveloped, but expanding beverages market. This is evidenced by a new entrant in the beer market and a number of commitments by industry players to increase capacity. In recent years the government has made moves to cut down on the high incidence of smuggling and counterfeit drinks in the Mozambican beverages industry.

Strengths

• Despite a recent slowdown, Mozambique is expected to remain one of the fastest growing consumer markets in Africa.
• Substantial investments are being made in capacity expansion.
• The industry has delivered a strong performance over the past five years.
• The industry’s major players are well-established companies with sound credentials.

Weaknesses

• Accessing finance is notoriously difficult.
• Distribution costs are high.
• Operational costs are high.
• Sales growth of mainstream brands is constrained by cheap imports, home brews and liquor that enters the market illegally.
• The business environment is characterised by bureaucratic inefficiencies and corruption.
• The industry is poorly regulated and quality control is lacking.
• There is a shortage of skilled labour.

Opportunities

• Anticipated growth in demand for premium beverages from the restaurant and hospitality industries.
• Development of the bottled water, functional drinks, spirits and wine segments.
• Export of locally manufactured beverages to other regional markets.
• Rising urbanisation and the emerging consumer class.
• The development of wholesale, retail and distribution networks in underserved areas.
• The migration of consumers from traditional to mainstream beverages.

Threats

• The erratic supply of water and raw ingredients caused by droughts and flooding.
• The influx of cheap and/or illegal imports.
• The sustained weakness of the crude oil price, which could have negative implications for future investment in Mozambique’s offshore gas fields.
• The weak rule of law.
• The weakening of domestic and global economic growth.

Outlook

While Mozambique’s economic growth slowed recently and continues to feel the effect of the debt crisis in 2016 and cyclones and flooding in 2019, the economy is expected to pick up in 2020. Moves to clamp down on illegal and counterfeit production and the recent entry of a competitor in the beer segment may help the sector become more dynamic. However, while the country’s steadily growing urbanisation and population represent an opportunity for beverage producers, the country still needs to overcome a number of threats – in particular corruption, high levels of poverty, poor infrastructure and adverse weather events such as flooding and droughts.

The Beverages Industry in Mozambique
The Beverages Industry in Mozambique 2019

Full Report

R 1 900.00(ZAR) estimated $102.91 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.70 (USD)*

Historical Reports

The Beverages Industry in Mozambique 2016-01-25

R 1 900.00(ZAR) estimated $103.86 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
3. DESCRIPTION OF THE INDUSTRY 2
3.1. Value Chain 5
3.2. Geographic Position 6
4. SIZE OF THE INDUSTRY 8
5. STATE OF THE INDUSTRY 10
5.1. Local 10
5.1.1. Corporate Actions 13
5.1.2. Regulations 13
5.1.3. Enterprise Development and Social Economic Development 15
5.2. Continental 15
5.3. International 17
6. INFLUENCING FACTORS 20
6.1. Economic Environment 20
6.2. Government Interventions 21
6.3. Socio-Political and Socio-Economic Environment 22
6.4. Socio-Cultural Environment 23
6.5. Rising Input Costs 23
6.6. Technology, Research & Development (R&D) and Innovation 24
6.7. Environmental Concerns 25
6.8. Labour 26
6.9. Cyclicality 27
6.10. Branding, Advertising and Marketing 27
6.11. Informal and Illegal Trade in Beverages 27
6.12. Health and Safety Concerns 28
7. COMPETITION 28
7.1. Barriers to Entry 29
8. SWOT ANALYSIS 30
9. OUTLOOK 31
10. INDUSTRY ASSOCIATIONS 31
11. REFERENCES 31
11.1. Publications 31
11.2. Websites 32
APPENDIX 1 34
Summary of Major Players 34
COMPANY PROFILES 36
CELFER LDA 36
CERVEJAS DE MOCAMBIQUE S.A. 38
COCA-COLA SABCO MOZAMBIQUE SARL 41
DADTCO MANDIOCA MOZAMBIQUE LDA 43
DIAGEO MOZAMBIQUE LDA 45
MASSMART HOLDINGS LTD 47
MOPANI INTERNACIONAL LDA 53
SHOPRITE HOLDINGS LTD 54
SOCIEDADE AGUAS VUMBA S.A. 59
SOCIEDADE DE AGUAS DE MOZAMBIQUE LDA 61
SPAR GROUP LTD (THE) 63
VARUN BEVERAGES MOZAMBIQUE LDA 68
WINE LOVERS MAPUTO 69
WOOLWORTHS (PTY) LTD 70
YAAFICO INDUSTRIAL LDA 73

Report Coverage

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.

Introduction

This report focuses on the beverages industry in one of the fastest growing frontier economies on the African continent, the Republic of Mozambique. 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 beverages market. During the past year, the Mozambican beverages industry has come under scrutiny and efforts to formalise traditional production have intensified. This follows a tragic incident that claimed the lives of 52 funeral-goers who were served a lethal traditional brew at a funeral in Chitima, Tete Province in January 2015.

Strengths

• Mozambique is one of the fastest growing consumer markets on the African continent.
• Substantial investments have been made in capacity expansion.
• The industry has delivered a strong performance over the past five years.
• The industry’s major players are well-established companies with sound credentials.

Weaknesses

•  Accessing finance is notoriously difficult.
• Distribution costs are high.
• Operational costs are high.
• Sales growth of mainstream brands is constrained by cheap imports, home brews, as well as by liquor that enters the market illegally.
• The business environment is characterised by bureaucratic inefficiencies and corruption.
• The industry is poorly regulated and quality control is lacking.
• There is a shortage of skilled labour.

Opportunities

• Anticipated growth in demand for premium beverages from the restaurant and hospitality industries.
• Development of the bottled water, functional drinks, spirits and wine segments.
• Export of locally manufactured beverages to other regional markets.
• Rising urbanisation, together with the emerging consumer class.
• The development of wholesale, retail and distribution networks in underserved areas.
• The migration of consumers from traditional to mainstream beverages.

Threats

• Rising domestic political tensions, as well as heightened geopolitical security concerns.
• Sustained exchange rate volatility.
• The erratic supply of water and raw ingredients caused by droughts and flooding.
• The influx of cheap and/or illegal imports.
• The sustained weakness of the crude oil price, which could have negative implications for future investment in Mozambique’s offshore gas fields.
• The weakening of both domestic and global economic growth.
• The weakening of the rule of law.

Outlook

The Nyusi administration faces a number of challenges in 2016, not least of which is the real threat of separatist insurrection in the country’s central and northern provinces. Some analysts warn that Mozambique’s relatively fragile economy, already grappling with the negative impact of plunging commodity prices, a decline in foreign exchange inflows and balance of payment pressures, can ill afford to wage a low-intensity war with Renamo. Given the current climate of uncertainty and insecurity globally, many analysts predict that investment inflows into Mozambique could slow and that projects could be placed on the back burner. While stakeholders in the country’s beverages industry are generally optimistic about the future growth prospects of both non-alcoholic and alcoholic drinks, there are concerns that recessionary pressures could result in a decline in discretionary consumer spending.

Read More..
The Beverages Industry in Mozambique
The Beverages Industry in Mozambique 2016

Full Report

R 1 900.00(ZAR) estimated $102.91 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.70 (USD)*

Historical Reports

The Beverages Industry in Mozambique 2019-10-23

R 1 900.00(ZAR) estimated $103.86 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Value Chain 4
2.2. Geographic Position 5
3. SIZE OF THE INDUSTRY 8
4. STATE OF THE INDUSTRY 12
4.1. Local 12
4.1.1. Corporate Actions 15
4.1.2. Regulations 16
4.2. Continental 17
4.3. International 20
5. INFLUENCING FACTORS 24
5.1. Economic Environment 24
5.2. Government Interventions 26
5.3. Socio-Political and Socio-Economic Environment 26
5.4. Socio-Cultural Environment 28
5.5. Rising Input Costs 28
5.6. Technology, Research and Development (R&D) and Innovation 28
5.7. Environmental Concerns 30
5.8. Labour 31
5.9. Cyclicality 32
5.10. Branding, Advertising and Marketing 32
5.11. Informal and Illegal Trade in Beverages 32
5.12. Health and Safety Concerns 33
6. COMPETITION 33
6.1. Barriers to Entry 34
7. SWOT ANALYSIS 35
8. OUTLOOK 36
9. INDUSTRY ASSOCIATIONS 37
10. REFERENCES 37
10.1. Publications 37
10.2. Websites 38
COMPANY PROFILES 40
CELFER Lda 40
Cervejas De Mozambique SA 41
Coca-Cola Sabco Mozambique SARL 43
DADTCO Mandioca Mozambique Lda 45
Diageo-Mozambique Lda 47
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