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The Manufacture and Wholesale of Non-Alcoholic Beverages
BY Louise Mitchel
South Africa
05 June 2019
R 14 400.00 (ZAR)  
estimated $ 1 010.60 (USD) *
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The Manufacture and Wholesale of Non-Alcoholic Beverages


Expenditure on non-alcoholic beverages (NABs) totalled R13.4bn, contributing 6.7% to total manufacturing in February 2019 and increasing 14.5% year-on-year, partly driven by the increase in VAT in April 2018. The effect of the sugar tax that was implemented in April 2018 is still to be quantified. Almost 70% of NABs sold in South Africa in 2017 were carbonated soft drinks, while fruit juice accounted for almost 12% of all NAB sales. Carbonated soft drinks sales grew by 4.2% between 2017 and 2018 while volumes produced increased by 4.7%.


Changing Conditions


Role players in the value chain are experiencing the effects of inflation as the cost of electricity, water and transportation increases. The sugar and fruit industries, which are the major providers of raw materials to NAB manufacturers, are facing challenges related to the ongoing drought. Concentrates are the fastest-growing segment of sugar-sweetened beverages, with consumption almost doubling in the past seven years. The demand for products with no artificial ingredients or chemicals, the use of exotic flavours in carbonated drinks, cannabis-infused drinks and energy drinks continue to result in new product innovation.


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 (drinks with a health benefit) and dairy and fruit blends. It describes the industry and the factors that influence it, including new regulations such as the sugar tax and relaxing of regulations on the use of cannabis. There are comprehensive profiles of 30 companies. These include Long4Life, which owns Inhle Beverages and which bought Chill Beverages in March 2018 for R493m, and Little Green Beverages which bought Pepsi bottler SoftBev.


Page
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 5
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 6
4.1. Local 6
4.1.1. Trade 9
4.1.2. Corporate Actions 9
4.1.3. Regulations 10
4.1.4. Enterprise Development and Social Economic Development 13
4.2. Continental 15
4.3. International 16
5. INFLUENCING FACTORS 18
5.1. Economic Environment 18
5.2. Rising Operating Costs 18
5.3. Health and Dietary Considerations 19
5.4. Tax on Sugar-Sweetened Beverages 19
5.5. Information Technology, Research and Development (R&D) and Innovation 20
5.6. Labour 21
5.7. Cyclicality 22
5.8. Environmental Concerns 22
5.9. Electricity and Water Supply Constraints 23
6. COMPETITION 24
6.1. Barriers to Entry 24
7. SWOT ANALYSIS 25
8. OUTLOOK 25
9. INDUSTRY ASSOCIATIONS 26
10. REFERENCES 27
10.1. Publications 27
10.2. Websites 27
APPENDIX 1 29
Summary of Notable players 29
COMPANY PROFILES 32
ADCOCK INGRAM HOLDINGS LTD 32
BIG SAVE DISTRIBUTION CENTRE (PTY) LTD 37
BIG SAVE LIQUOR WALTLOO (PTY) LTD 39
BOS BRANDS (PTY) LTD 41
BREVA ENTERPRISES (PTY) LTD 43
CLOVER SA (PTY) LTD 44
COCA-COLA BEVERAGES AFRICA (PTY) LTD 49
COCA-COLA PENINSULA BEVERAGES (PTY) LTD 51
COCA-COLA SABCO (PTY) LTD 54
COCA-COLA SHANDUKA BEVERAGES SOUTH AFRICA (PTY) LTD 56
EKHAMANZI SPRINGS (PTY) LTD 58
ENEBEV (PTY) LTD 60
KINGSLEY BEVERAGE (PTY) LTD 61
LENTAS INTERNATIONAL (PTY) LTD 63
LITTLE GREEN BEVERAGES (PTY) LTD 65
LONG4LIFE LTD 67
MOFAYA BEVERAGE COMPANY (PTY) LTD 71
NESTLE (SOUTH AFRICA) (PTY) LTD 72
PARMALAT SOUTH AFRICA (PTY) LTD 76
PIONEER FOODS GROCERIES (PTY) LTD 78
PVM NUTRITIONAL SCIENCES (PTY) LTD 80
RED BULL SOUTH AFRICA (PTY) LTD 82
SODA KING FRANCHISING CC 84
SOFTBEV (PTY) LTD 86
SOUTH AFRICAN BREWERIES (PTY) LTD (THE) 88
SUNTORY BEVERAGE AND FOOD SOUTH AFRICA LTD 91
TIGER BRANDS LTD 93
TIGER CONSUMER BRANDS LTD 98
TWIZZA (PTY) LTD 101
ULTIMATE SPORTS NUTRITION (PTY) LTD 103