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The Liquor Industry in South Africa
BY Stephen Timm
South Africa
24 August 2021
R 14 400.00 (ZAR)  
estimated $ 989.44 (USD) *
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The Liquor Industry in South Africa


Since the onset of the pandemic in March 2020, South Africa’s liquor industry has been subjected to four liquor bans and several periods in which liquor trading was restricted by the government. It is estimated that the bans and trading restrictions cost the industry over R45bn from March 2020 to July 2021. Total local liquor consumption (including Botswana, Lesotho, Namibia and Eswatini) decreased by 18% in 2020. The pandemic has also accelerated growth in no-alcohol and low-alcohol beverages, and led to an increase in ecommerce sales.


Retail


Supermarket groups Spar, Massmart, Shoprite and Pick n Pay have come to dominate liquor retail and incrementally taken share from independent bottle stores following their aggressive expansion into the sector. Woolworths has recently entered the market with its first standalone store. However, the large retailers all reported a decline in liquor revenue because of the liquor bans. Taverns continue to represent a large part of the sector.


Wine


South Africa is the world’s seventh biggest wine producer and a significant employer in wine-growing regions. Wine sales declined by more than 10% in volume terms in 2020, with domestic sales only marginally ahead of export sales. Despite lockdowns and alcohol bans, wine exports, excluding those to neighbouring countries, grew in revenue terms in 2020. While the annual grape harvest increased, the number of wine producers, wine cellars and land under cultivation continue to decline. Wine experts warn that with the continuing decline in new plantings as a result of farmers coming under increasing financial pressure, the industry may soon find itself facing shortages of some varietals.


Report Coverage


This report focuses on the South African liquor industry, including manufacture, wholesale and retail. It includes comprehensive information on the beer, wine and spirits industry, including the size and state of the sector, trade statistics, the informal sector, the effect of liquor bans and recent unrest, proposed regulation and other government intervention. There are profiles of 45 companies including major players such as DGB, Diageo and Pernod-Ricard and winemakers such as Simonsig and Morgenster. Retailers profiled include the major retailers, Liquor City and Picardi Rebel.


Page
1. INTRODUCTION 5
2. DESCRIPTION OF THE INDUSTRY 5
2.1. Industry Value Chain 7
2.2. Geographic Position 9
3. SIZE OF THE INDUSTRY 10
4. STATE OF THE INDUSTRY 19
4.1. Local 19
4.1.1. Trade 35
4.1.2. Corporate Actions 42
4.1.3. Regulations 43
4.1.4. Enterprise Development and Social Economic Development 46
4.2. Continental 49
4.3. International 52
5. INFLUENCING FACTORS 58
5.1. Coronavirus 58
5.2. Economic Environment 60
5.3. Government Intervention 61
5.4. Health Issues 63
5.5. Illegal and Illicit Liquor Trade 65
5.6. Rising Operating Costs 66
5.7. Technology, Research and Development (R&D) and Innovation 67
5.8. Labour 69
5.9. Cyclicality 71
5.10. Environmental 72
6. COMPETITION 73
6.1. Barriers to Entry 74
7. SWOT ANALYSIS 74
8. OUTLOOK 75
9. INDUSTRY ASSOCIATIONS 76
10. REFERENCES 77
10.1. Publications 77
10.2. Websites 79
APPENDIX 1 - SUMMARY OF NOTABLE PLAYERS 81
Producers/Wholesalers 30510a; 3052; 30510b; 61222a 81
Retailers 62204 85
Distributors 61222b 87
COMPANY PROFILES – PRODUCERS AND WHOLESALERS 89
ACHERON WINES AND SPIRITS (PTY) LTD 90
ALCONCP (PTY) LTD 92
BACKSBERG ESTATE CELLARS CC 94
BECK FAMILY ESTATES (PTY) LTD 96
BOLAND WINGERDE INTERNASIONAAL (PTY) LTD 99
DE WAAL WINES (PTY) LTD 101
DE WETSHOF ESTATE (PTY) LTD 103
DGB (PTY) LTD 105
DIAGEO SOUTH AFRICA (PTY) LTD 107
EDWARD SNELL AND COMPANY (PTY) LTD 109
EXCELSIOR MARKETING (PTY) LTD 112
FAIRVIEW WINES (PTY) LTD 114
HEINEKEN SOUTH AFRICA (RF) (PTY) LTD 116
KLEINE ZALZE WINES (PTY) LTD 118
LANZERAC ESTATE INVESTMENTS (PTY) LTD 120
MERIDIAN WINE DISTRIBUTION (PTY) LTD 122
MORGENSTER (1711) (PTY) LTD 125
NAMAQUA WINES DISTRIBUTION (PTY) LTD 128
NEWSHELF 1167 (PTY) LTD 129
OCEAN TRADERS INTERNATIONAL AFRICA (PTY) LTD 131
ORANJERIVIER WYNKELDERS CO-OPERATIVE LIMITED PRIMARY CO-OPERATIVE 133
P C KELDERS (PTY) LTD 136
PERNOD RICARD SOUTH AFRICA (PTY) LTD 138
REALLY GREAT BRAND COMPANY (PTY) LTD (THE) 141
ROBERTSON WYNMAKERY LANDBOU KOOPERATIEF BEPERK PRIMARY CO-OPERATIVE 144
RUSTENBERG WINES (PTY) LTD 146
SIMONSIG WINES (PTY) LTD 148
SOUTH AFRICAN BREWERIES (PTY) LTD (THE) 150
SOUTH AFRICAN DISTILLERIES AND WINES (S A) LTD 153
SPIER FARM MANAGEMENT (PTY) LTD 156
STELLENBOSCH VINEYARDS (PTY) LTD 158
TIGER BRANDS LTD 160
VAN LOVEREN VINEYARDS (PTY) LTD 165
VERGELEGEN WINES (PTY) LTD 168
VINIMARK TRADING (PTY) LTD 170
WARSHAY INVESTMENTS (PTY) LTD 173
WINES OF THE WORLD DISTRIBUTORS (PTY) LTD 176
ZIDELA WINES (PTY) LTD 178
COMPANY PROFILES – RETAILERS 180
BEADICA 276 CC 180
BIG DADDY'S LIQUORS (PTY) LTD 182
DIAMONDS DISCOUNT LIQUOR (PTY) LTD 183
LIQUOR CITY-THE LIQUOR BOYS CC 186
MASSMART HOLDINGS LTD 196
PICARDI HOTELLE (PTY) LTD 202
PICARDI LIQUORS (PTY) LTD 205
PICK N PAY STORES LTD 207
ROBINSON LIQUORS (PTY) LTD 212
SHOPRITE HOLDINGS LTD 216
SPAR GROUP LTD (THE) 221
WOOLWORTHS (PTY) LTD 227
COMPANY PROFILES – DISTRIBUTORS 230
MERIDIAN WINE DISTRIBUTION (PTY) LTD 231
OCEAN TRADERS INTERNATIONAL AFRICA (PTY) LTD 234
REALLY GREAT BRAND COMPANY (PTY) LTD (THE) 236
VINIMARK TRADING (PTY) LTD 239
WINES OF THE WORLD DISTRIBUTORS (PTY) LTD 242
0
1. INTRODUCTION 5
2. DESCRIPTION OF THE INDUSTRY 5
2.1. Industry Value Chain 7
2.2. Geographic Position 9
3. SIZE OF THE INDUSTRY 10
4. STATE OF THE INDUSTRY 19
4.1. Local 19
4.1.1. Trade 35
4.1.2. Corporate Actions 42
4.1.3. Regulations 43
4.1.4. Enterprise Development and Social Economic Development 46
4.2. Continental 49
4.3. International 52
5. INFLUENCING FACTORS 58
5.1. Coronavirus 58
5.2. Economic Environment 60
5.3. Government Intervention 61
5.4. Health Issues 63
5.5. Illegal and Illicit Liquor Trade 65
5.6. Rising Operating Costs 66
5.7. Technology, Research and Development (R&D) and Innovation 67
5.8. Labour 69
5.9. Cyclicality 71
5.10. Environmental 72
6. COMPETITION 73
6.1. Barriers to Entry 74
7. SWOT ANALYSIS 74
8. OUTLOOK 75
9. INDUSTRY ASSOCIATIONS 76
10. REFERENCES 77
10.1. Publications 77
10.2. Websites 79
APPENDIX 1 - SUMMARY OF NOTABLE PLAYERS 81
Producers/Wholesalers 30510a; 3052; 30510b; 61222a 81
Retailers 62204 85
Distributors 61222b 87
COMPANY PROFILES – PRODUCERS AND WHOLESALERS 89
ACHERON WINES AND SPIRITS (PTY) LTD 90
ALCONCP (PTY) LTD 92
BACKSBERG ESTATE CELLARS CC 94
BECK FAMILY ESTATES (PTY) LTD 96
BOLAND WINGERDE INTERNASIONAAL (PTY) LTD 99
DE WAAL WINES (PTY) LTD 101
DE WETSHOF ESTATE (PTY) LTD 103
DGB (PTY) LTD 105
DIAGEO SOUTH AFRICA (PTY) LTD 107
EDWARD SNELL AND COMPANY (PTY) LTD 109
EXCELSIOR MARKETING (PTY) LTD 112
FAIRVIEW WINES (PTY) LTD 114
HEINEKEN SOUTH AFRICA (RF) (PTY) LTD 116
KLEINE ZALZE WINES (PTY) LTD 118
LANZERAC ESTATE INVESTMENTS (PTY) LTD 120
MERIDIAN WINE DISTRIBUTION (PTY) LTD 122
MORGENSTER (1711) (PTY) LTD 125
NAMAQUA WINES DISTRIBUTION (PTY) LTD 128
NEWSHELF 1167 (PTY) LTD 129
OCEAN TRADERS INTERNATIONAL AFRICA (PTY) LTD 131
ORANJERIVIER WYNKELDERS CO-OPERATIVE LIMITED PRIMARY CO-OPERATIVE 133
P C KELDERS (PTY) LTD 136
PERNOD RICARD SOUTH AFRICA (PTY) LTD 138
REALLY GREAT BRAND COMPANY (PTY) LTD (THE) 141
ROBERTSON WYNMAKERY LANDBOU KOOPERATIEF BEPERK PRIMARY CO-OPERATIVE 144
RUSTENBERG WINES (PTY) LTD 146
SIMONSIG WINES (PTY) LTD 148
SOUTH AFRICAN BREWERIES (PTY) LTD (THE) 150
SOUTH AFRICAN DISTILLERIES AND WINES (S A) LTD 153
SPIER FARM MANAGEMENT (PTY) LTD 156
STELLENBOSCH VINEYARDS (PTY) LTD 158
TIGER BRANDS LTD 160
VAN LOVEREN VINEYARDS (PTY) LTD 165
VERGELEGEN WINES (PTY) LTD 168
VINIMARK TRADING (PTY) LTD 170
WARSHAY INVESTMENTS (PTY) LTD 173
WINES OF THE WORLD DISTRIBUTORS (PTY) LTD 176
ZIDELA WINES (PTY) LTD 178
COMPANY PROFILES – RETAILERS 180
BEADICA 276 CC 180
BIG DADDY'S LIQUORS (PTY) LTD 182
DIAMONDS DISCOUNT LIQUOR (PTY) LTD 183
LIQUOR CITY-THE LIQUOR BOYS CC 186
MASSMART HOLDINGS LTD 196
PICARDI HOTELLE (PTY) LTD 202
PICARDI LIQUORS (PTY) LTD 205
PICK N PAY STORES LTD 207
ROBINSON LIQUORS (PTY) LTD 212
SHOPRITE HOLDINGS LTD 216
SPAR GROUP LTD (THE) 221
WOOLWORTHS (PTY) LTD 227
COMPANY PROFILES – DISTRIBUTORS 230
MERIDIAN WINE DISTRIBUTION (PTY) LTD 231
OCEAN TRADERS INTERNATIONAL AFRICA (PTY) LTD 234
REALLY GREAT BRAND COMPANY (PTY) LTD (THE) 236
VINIMARK TRADING (PTY) LTD 239
WINES OF THE WORLD DISTRIBUTORS (PTY) LTD 242