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The Liquor Industry
BY Marc Bosman
South Africa
20 February 2020
R 14 400.00 (ZAR)  
estimated $ 871.99 (USD) *
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Liquor Industry


South Africa’s liquor industry is considered mature and dominated by large global companies. The top liquor players, those which produce and distribute beer wine and spirits, all have strong brands, which gives them pricing power, which is enhanced through premiumisation. The top five companies, AB InBev, Distell, Heineken, Diageo and Namibian Breweries, collectively have a significant percentage of the local legal retail liquor market.


Industry Trends


Premiumisation through marketing or the creation of new premium variants is resulting in sales and profitability increasing faster than volume. New products, including craft products, zero alcohol, zero calorie and zero carbohydrate sparkling water beverages infused with cannabis derivatives are increasing. But the more than 215 craft breweries accounted for less than 1% of the local beer market. The beer segment continues to dominate the market compared to wine and spirits. The Department of Trade, Industry and Competition estimates that only 20% of informal liquor traders have applied for a licence.


Wine Trends


The wine industry has a much lower level of concentration than other liquor segments. South Africa is seen as a ‘new world’ wine producer along with countries such as Australia, Chile and Argentina. Over the ten years from 2008 to 2018, the number of wine producers declined by 33.6% and wine cellars declined by 7.7%, as drought and declining yields in the Western Cape increasingly render local growers and wine producers in the region unsustainable. Export sales volumes have declined but not export revenue, indicating positive international demand and acceptance of local wine.


Report Coverage


This report focuses on the South African liquor industry, including manufacture, wholesale and retail. It includes comprehensive information on the state of the industry, local and international corporate actions, regulations, product innovation and distribution and marketing trends. There are profiles of 50 companies including the major global and local alcohol beverages companies such as South African Breweries, DGB, Diageo and Heineken, wine farms such as Simonsig, Lanzerac, Vergelegen and Backsberg and major liquor retailers such as Spar.


Page
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 4
2.2. Geographic Position 6
3. SIZE OF THE INDUSTRY 7
4. STATE OF THE INDUSTRY 18
4.1. Local 18
4.1.1. Corporate Actions 22
4.1.2. Regulations 27
4.1.3. Enterprise Development and Social Economic Development 30
4.2. Continental 32
4.3. International 34
5. INFLUENCING FACTORS 36
5.1. Economic Environment 36
5.2. Government Intervention 37
5.3. Health Issues 37
5.4. Illegal and Illicit Liquor Trade 39
5.5. Rising Operating Costs 39
5.6. Technology, Research and Development (R&D) and Innovation 40
5.7. Labour 42
5.8. Cyclicality 44
5.9. Environmental 44
6. COMPETITION 45
7. SWOT ANALYSIS 47
8. OUTLOOK 48
9. INDUSTRY ASSOCIATIONS 48
10. REFERENCES 50
10.1. Publications 50
10.2. Blogs 50
10.3. Websites 50
APPENDIX 1 – SUMMARY OF NOTABLE PLAYERS 54
Producers/Wholesalers of Liquor 54
Retailers 57
Distributors 59
COMPANY PROFILES – PRODUCERS/WHOLESALERS OF LIQUOR 61
ACHERON WINES AND SPIRITS (PTY) LTD 61
BACKSBERG ESTATE CELLARS CC 63
BOLAND WINGERDE INTERNASIONAAL (PTY) LTD 65
DE WAAL WINES (PTY) LTD 67
DE WETSHOF ESTATE (PTY) LTD 69
DGB (PTY) LTD 71
DIAGEO SOUTH AFRICA (PTY) LTD 74
EDWARD SNELL AND COMPANY (PTY) LTD 76
EXCELSIOR MARKETING (PTY) LTD 79
FAIRVIEW WINES (PTY) LTD 81
GRAHAM BECK ENTERPRISES (PTY) LTD 83
HEINEKEN SOUTH AFRICA (PTY) LTD 86
KLEINE ZALZE WINES (PTY) LTD 88
LANZERAC ESTATE INVESTMENTS (PTY) LTD 90
MORGENSTER (1711) (PTY) LTD 92
NCP ALCOHOLS (PTY) LTD 95
NEWSHELF 1167 (PTY) LTD 98
ORANJERIVIER WYNKELDERS CO-OPERATIVE LIMITED 100
P C KELDERS (PTY) LTD 103
PERNOD RICARD SOUTH AFRICA (PTY) LTD 105
ROBERTSON KOOPERATIEWE WYNMAKERY BEPERK PRIMARY CO-OPERATIVE 108
RUSTENBERG WINES (PTY) LTD 110
SIMONSIG WINES (PTY) LTD 112
SOUTH AFRICAN BREWERIES (PTY) LTD (THE) 114
SOUTH AFRICAN DISTILLERIES AND WINES (S A) LTD 117
SPIER FARM MANAGEMENT (PTY) LTD 120
STELLENBOSCH VINEYARDS (PTY) LTD 122
TIGER BRANDS LTD 124
VAN LOVEREN VINEYARDS (PTY) LTD 129
VERGELEGEN WINES (PTY) LTD 131
WARSHAY INVESTMENTS (PTY) LTD 133
ZANDWIJK WINES (PTY) LTD 135
ZIDELA WINES (PTY) LTD 137
COMPANY PROFILES – RETAILERS 139
BEADICA 276 CC 139
BIG DADDY'S LIQUORS (PTY) LTD 141
DIAMONDS DISCOUNT LIQUOR (PTY) LTD 143
LIQUOR CITY-THE LIQUOR BOYS CC 146
MASSMART HOLDINGS LTD 155
PICARDI HOTELLE (PTY) LTD 161
PICARDI LIQUORS (PTY) LTD 164
PICK N PAY STORES LTD 166
ROBINSON LIQUORS (PTY) LTD 171
SHOPRITE HOLDINGS LTD 175
SPAR GROUP LTD (THE) 180
WOOLWORTHS (PTY) LTD 186
COMPANY PROFILES – DISTRIBUTORS 189
MERIDIAN WINE DISTRIBUTION (PTY) LTD 189
OCEAN TRADERS INTERNATIONAL AFRICA (PTY) LTD 192
REALLY GREAT BRAND COMPANY (PTY) LTD (THE) 194
VINIMARK TRADING (PTY) LTD 197
WINES OF THE WORLD DISTRIBUTORS (PTY) LTD 200