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Beverages Industry Angola

The Beverages Industry in Angola 2019

Stephen Timm | Angola | 03 October 2019

The Beverages Industry in Angola 2016

Carole Veitch | Angola | 25 January 2016

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Report Coverage

This report focuses on the beverages sector in Angola with information on the size and state of the industry and the activities of major and niche players. There are profiles of 19 companies including Refriango, the soft drink market leader, Distell Angola, which has been producing JC Le Roux in Angola since 2012 and smaller companies such as Aquacita, which produces bottled water.

Introduction

This report focuses on the beverages industry in one of Africa’s most dynamic markets, the Republic of Angola. The multi-billion dollar industry plays a key role in the Angolan economy, providing about 13,600 direct jobs and about 42,000 indirect jobs across the value chain. There are about 40 beverages factories in Angola that make everything from beer, spirits and wines, to soda drinks, mineral water and fruit juices. The sector contributes about 4% to GDP, according to figures from the country’s statistics agency Instituto Nacional de Estatística (INE). Total domestic beverage consumption was about 3 billion litres per year in 2018, with 90% of demand met by locally-produced beverages. There is plenty of room for the sector to expand once the economy begins growing again, with installed local capacity at over 4.5 billion litres per annum, and particularly as the country exported just 0.6 million litres in 2017, according to the Angola Beverage Industries Association (AIBA).

Strengths

• All segments of the beverages industry have experienced sustained growth in recent years.
• Angola is one of the largest alcoholic beverages market in sub-Saharan Africa.
• Substantial investments have been made in capacity expansion and the industry is generally able to meet local demand.
• The Angolan beverage industry provides around 13,600 direct jobs and about 42,000 indirect jobs.
• The beverages industry is one of Angola’s most developed industries.
• There is a well-established wine-drinking culture in Angola. The country is the second-largest market on the continent for wine and spirits.

Weaknesses

• Although there has been progress, Angola’s business environment still ranks as one of the most challenging in the world.
• Infrastructure is underdeveloped and, with the exception of Angola’s major urban centres, there is a scarcity of modern retail facilities.
• Productivity is constrained by power outages.
• The industry is poorly regulated.
• There are frequently payment delays to international suppliers, due to foreign currency restrictions.
• There is a shortage of skilled labour.
• Though improving, inputs are mostly imported which increases production costs.

Opportunities

• Development of the spirits market, which is relatively untapped.
• Development of wine farming.
• Rising urbanisation, together with the emerging middle class, continues to drive demand across all segments.
• The development of craft beer, spirits and sodas.
• The development of wholesale, retail and distribution networks in underserved areas.
• The expansion of e-commerce.
• The export of locally manufactured beverages to other regional markets.
• Trading consumers up from informal homebrews branded beverages.

Threats

• Further depreciation of the local currency and foreign exchange constraints.
• Heightened geopolitical tensions.
• Import restrictions and higher customs duties, which will have a particularly negative impact on importers and distributors operating in the market.
• The subdued domestic macroeconomic environment.
• The sustained weakness of the crude oil price.
• The weakening of global markets.

Outlook

The Angolan beverages industry continues to face significant challenges. Despite this, domestic production of beer, carbonated soft drinks and bottled water is expected to continue to rise over the next five years at the expense of imported beverage sales. While some operators may be operating fewer production lines, many are still investing in the industry in preparation for when the market begins growing apace again. The increasing availability of local inputs such as ingredients and packaging material is likely to make the sector more competitive. Angola’s ascension to the Southern African Development Community – which could happen as early as 2019 – will be a major boost for South African exporters. Currently two customs duties are planned, with one for South Africa and one for the other members of the economic bloc. In addition, new investment rules are likely to make it more attractive for large players to expand and to even use Angola as a base to export to the rest of the continent.

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The Beverages Industry in Angola 2019

Full Report

R 1 900.00(ZAR) estimated $100.30 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 70.21 (USD)*

Historical Reports

The Beverages Industry in Angola 2016-01-25

R 1 900.00(ZAR) estimated $100.30 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
3. DESCRIPTION OF THE INDUSTRY 2
3.1. Industry Supply Chain 4
3.2. Geographic Position 5
4. SIZE OF THE INDUSTRY 7
5. STATE OF THE INDUSTRY 10
5.1. Local 10
5.1.1. Corporate Actions 14
5.1.2. Regulations 14
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. High Input Costs 23
6.6. Technology, Research & Development (R&D) and Innovation 24
6.7. Environmental Concerns 25
6.8. Labour 25
6.9. Cyclicality 26
6.10. Branding, Advertising and Marketing 27
6.11. Informal and Illegal Trade in Beverages 27
6.12. Health and Safety Concerns 27
7. COMPETITION 27
7.1. Barriers to Entry 28
8. SWOT ANALYSIS 29
9. OUTLOOK 30
10. INDUSTRY ASSOCIATIONS 30
11. REFERENCES 31
11.1. Publications 31
11.2. Websites 31
APPENDIX 1 33
Summary of Notable Players 33
COMPANY PROFILES 35
AGUA MINERAL DO TCHIOWA LDA 35
AQUACITA LDA 36
DISTELL ANGOLA LDA 37
EMPRESA DE CERVEJAS N'GOLA S.A. 39
GRUPO CASTEL ANGOLA 40
MOSTRATUS LDA 42
NOSSO SUPER GESTAO DE SUPERMERCADOS LDA 44
NUTRE AO LDA 47
PERNOD RICARD S.A. 49
POMOBEL LDA 57
REFRIANGO S.A. 59
SCORE DISTRIBUICAO S.A. 62
SHOPRITE HOLDINGS LTD 64
SOCIEDADE DE DISTRIBUICAO DE BEBIDAS DE ANGOLA LDA 69
SPAR GROUP LTD (THE) 71
SUMOL+COMPAL S.A. 76
TEIXEIRA DUARTE S.A. 79
WEBCOR S.A. 83
ZAHARA COMERCIO S.A. 86

Report Coverage

The Manufacture, Wholesale and Retail of Beverages in Angola investigates the local beverages market, recent developments and factors influencing the success of the formal sector. The report also profiles 17 companies, including Refriango, the Angolan Portuguese-owned market leader that manufactures and distributes soft drinks, energy drinks, bottled water and wine, and plans to enter the beer segment in the near future. Also profiled are beverage retailers including Angolan companies, Nosso Super Gestao de Supermercados Lda and Score Distribuicao SA, as well as South African giant Shoprite Holdings, which sold more bottles of JC le Roux sparkling wine at its 19 Shoprite Angolan stores than at all its stores in South Africa.

Introduction

This report focuses on the beverages industry in one of Africa’s most dynamic markets, the Republic of Angola. The multi-billion dollar industry plays a key role in the Angolan economy, providing around 14,000 direct jobs and approximately 42,000 indirect employment opportunities across the value chain. With total domestic beverage consumption of 2.68 billion litres in 2014 and installed production capacity of 4.48 billion litres per annum, the industry currently finds itself looking at a glass that could be deemed half full or half empty. While some stakeholders view the industry’s surplus capacity as a potential opportunity for Angolan beverage producers to export their wares, others warn that prevailing market conditions could constrain growth.

Strengths

• All segments of the beverages industry have experienced sustained growth in recent years.
• Angola is the third-largest alcoholic beverages market in sub-Saharan Africa.
• Substantial investments have been made in capacity expansion and the industry is generally able to meet local demand.
• The Angolan beverage industry provides around 14,000 direct jobs and about 42,000 indirect jobs.
• The beverages industry is one of Angola’s most developed industries.
• There is a well-established wine-drinking culture in Angola. The country is the second-largest market on the continent for both wine and spirits.

Weaknesses

• Although there has been progress, Angola’s business environment still ranks as one of the most challenging in the world.
• Infrastructure is underdeveloped and, with the exception of Angola’s major urban centres, there is a scarcity of modern retail facilities.
• Inputs are mostly imported and this drives production costs higher.
• Productivity is constrained by power outages.
• The industry is poorly regulated.
• There are frequently payment delays to international suppliers, due to foreign currency restrictions.
• There is a shortage of skilled labour.

Opportunities

• Development of the spirits market, which is relatively untapped.
• Development of wine farming.
• Rising urbanisation, together with the emerging middle class, continues to drive demand across all segments.
• The development of craft beer, spirits and sodas.
• The development of wholesale, retail and distribution networks in underserved areas.
• The expansion of e-commerce.
• The export of locally manufactured beverages to other regional markets.
• Trading consumers up from informal home-brews to branded beverages.

Threats

•  Further depreciation of the local currency and foreign exchange constraints.
•  Import restrictions and higher customs duties, which will have a particularly negative impact on importers and distributors operating in the market.
•  The subdued domestic macroeconomic environment.
•  Heightened geopolitical tensions.
•  The weakening of global markets.
•  The sustained weakness of the crude oil price.

Outlook

The Angolan beverages industry is expected to face significant challenges in 2016. Given the bearish fundamentals of the international crude oil price, which many economists warn could test US$30 per barrel, stakeholders fear that foreign currency restrictions will remain in place in Angola, making it increasingly difficult for local companies to pay their international suppliers. As several beverage producers prepare to ramp up domestic output, some analysts are warning that production lines could grind to a halt if companies are not able to procure essential imported inputs. The prohibitive increases in customs tariffs and consumption taxes that were announced in September 2015 are expected to make local producers significantly more competitive. Domestic production of beer, carbonated soft drinks and bottled water is predicted to rise substantially over the next five years at the expense of imported beverage sales, which analysts anticipate will plunge by an estimated 20% in 2016. Investments valued at US$2.4bn that have been earmarked for the Angolan food and beverages sector will also further boost local capacity.

Read More..
The Beverages Industry in Angola 2016

Full Report

R 1 900.00(ZAR) estimated $100.30 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 70.21 (USD)*

Historical Reports

The Beverages Industry in Angola 2019-10-03

R 1 900.00(ZAR) estimated $100.30 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Value Chain 3
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 7
4. STATE OF THE INDUSTRY 13
4.1. Local 13
4.1.1. Corporate Actions 15
4.1.2. Regulations 17
4.2. Continental 20
4.3. International 22
5. INFLUENCING FACTORS 26
5.1. Economic Environment 26
5.2. Government Interventions 27
5.3. Socio-Political and Socio-Economic Environment 27
5.4. Socio-Cultural Environment 28
5.5. Rising Input Costs 28
5.6. Technology, Research and Development (R&D) and Innovation 29
5.7. Environmental Concerns 30
5.8. Labour 32
5.9. Cyclicality 33
5.10. Branding, Advertising and Marketing 33
5.11. Informal and Illegal Trade in Beverages 33
5.12. Health and Safety Concerns 33
6. COMPETITION 34
6.1. Barriers to Entry 35
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
Agua Tchiowa Lda 40
Distell Angola Lda 41
Empresa de Cervejas N'Gola SA 42
Loja Gourmet de Belas Lda 43
Lonrho Springs Angola Lda 44
Mostratus Lda 45
Nosso Super Gestao de Supermercados Lda 46
Pernod Ricard SA 48
Pomobel Lda 54
Refriango SA 56
Score Distribuicao SA 58
Shoprite Holdings Ltd 59
SPAR Group Ltd (The) 65
Sumol+Compal SA 71
Teixeira Duarte SA 74
Webcor SA 77
Zahara Trade SA 79