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liquor industry south africa

The Liquor Industry in South Africa 2023

Stephen Timm | South Africa | 17 May 2023

The Liquor Industry in South Africa 2021

Stephen Timm | South Africa | 24 August 2021

The Liquor Industry in South Africa 2020

Marc Bosman | South Africa | 20 February 2020

The Liquor Industry in South Africa 2018

Marc Bosman | South Africa | 30 October 2018

The Liquor Industry in South Africa 2017

Nina Shand | South Africa | 13 September 2017

The Liquor Industry in South Africa 2016

Nina Shand | South Africa | 15 July 2016

The Liquor Industry in South Africa 2014

Amanda van der Westhuizen | South Africa | 22 January 2014

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Report Coverage

This report focuses on the South African liquor industry, including the manufacture, wholesale and retail of alcoholic beverages. It includes information on the size, state and performance of the sector by category and across manufacture, wholesale and retail subsectors, information on notable players, developments, corporate actions, pending regulatory changes and influencing factors. There are profiles of 50 companies including the major players AB InBev, Diageo and Heineken, wine producers such as Fairview, Morgenster and Simonsig, distributors such as Vinimark Trading and retailers including the major supermarket groups and liquor outlets such as Picardi and Liquor City.

Introduction

• This report focuses on the South African liquor industry, including the manufacture, wholesale and retail of alcoholic beverages.
• Retail revenue in the liquor industry, which is still recovering from alcohol bans during the pandemic, declined in 2022.
• Competition is set to increase following the approval in March 2023 of Heineken’s €2.4bn acquisition of Distell and Namibia Breweries.
• The deal has increased the share of revenue that goes to foreign owned companies in the sector to more than three-quarters of total liquor revenue.
• The poor economic outlook and power cuts are likely to result in a slowdown in liquor sales.
• Illicit trade in alcohol remains a key concern.

Strengths

• South Africa has a strong beer culture.
• The South African wine industry has shown a commitment to ethical wine production and fair trade, as well as organic production.
• The wine industry has seen good export growth in recent years.
• Wine tourism is well established in the Western Cape.

Weaknesses

• Liquor is a discretionary expense which makes it vulnerable to negative economic conditions.
• Low domestic per capita consumption of wine compared to other wine-producing countries.
• The sector, particularly in the spirits and beer segment, is dominated by a small number of large producers.

Opportunities

• African market for wine, distilled spirits, ready to drink products, cider and commercially-brewed beer provides opportunities for growth.
• Celebrity liquor brands are gaining prominence.
• Changing consumer preferences provide opportunities for innovation and the creation of new drinks and varieties to grow sales.
• Demand for products (including packaging) that are created sustainably.
• Growth in demand for healthy alternatives in no-alcohol and low-alcohol beverages.
• Growth in online sales, though niche, provides retailers and producers with an alternative route to market.
• Growth in recent years of the black middle class provides opportunities for premium and niche brands and wine.
• Heineken’s acquisition of Distell could lead to more competition, particularly in beer and cider. Winemakers believe it could help boost wine sales in the rest of Africa.
• The trend towards premiumisation c

Threats

• A slowing economy and high inflation means consumers could reduce spending on alcohol or trade down to more affordable liquor.
• Climate change could affect grape and barley production.
• Decreasing wine consumption, particularly among youth who are opting for certain spirits and low or no-alcohol options.
• Economic difficulties and the pandemic have suppressed consumer spending.
• Fluctuating exchange rates makes the market very unpredictable to exporters.
• Inputs costs are rising faster than in previous years, driven by loadshedding and a shortage of locally-produced inputs which means producers must rely more on imported materials.
• Liquor legislation becoming more restrictive in terms of the minimum drinking age, advertising and liquor trading hours.
• Loadshedding is driving up costs, while making it more difficult to harvest grapes and produce wine.
• More stringent government tax and e

Outlook

• Poor economic growth and high inflation could affect liquor sales as consumers cut back or trade down.
• Some segments will take share from other categories, as gin has taken share from wine, beer and other spirits.
• Global supply chains are improving and slowly normalising.
• A smaller wine grape crop is expected in 2023 due to poor weather and loadshedding.
• Rising input costs are expected to remain a concern.
• While winemakers have experienced decreasing profitability due to increasing costs and low wine prices, average bulk wine prices are expected to increase in 2023 and 2024.

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The Liquor Industry in South Africa 2023

Full Report

R 20 000.00(ZAR) estimated $1048.98 (USD)*

Industry Landscape

R 14 000.00(ZAR) estimated $ 734.29 (USD)*

Industry Organograms

Historical Reports

The Liquor Industry in South Africa 2021-08-24

R 6 500.00(ZAR) estimated $340.92 (USD)*

View Report Add to Cart

The Liquor Industry in South Africa 2020-02-20

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The Liquor Industry in South Africa 2018-10-30

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The Liquor Industry in South Africa 2017-09-13

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The Liquor Industry in South Africa 2016-07-15

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The Liquor Industry in South Africa 2014-01-22

R 1 900.00(ZAR) estimated $99.65 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 5
2.3. Size of the Industry 6
3. LOCAL 18
3.1. State of the Industry 18
3.2. Key Trends 29
3.3. Key Issues 34
3.4. Notable Players 34
3.5. Trade 35
3.6. Corporate Actions 41
3.7. Regulations 44
3.8. Enterprise Development and Social Development 47
4. AFRICA 51
5. INTERNATIONAL 53
6. INFLUENCING FACTORS 57
6.1. Unforeseen Events 57
6.2. Economic Environment 57
6.3. Labour 58
6.4. Environmental Issues 60
6.5. Technology, R&D, Innovation 62
6.6. Input Costs 64
6.7. Government Intervention 66
6.8. Health and Social Issues 67
6.9. Illegal and Illicit Trade 69
6.10. Cyclicality 70
7. COMPETITIVE ENVIRONMENT 70
7.1. Competition 70
7.2. Ownership Structure of the Industry 71
7.3. Barriers to Entry 73
8. SWOT ANALYSIS 73
9. OUTLOOK 74
10. INDUSTRY ASSOCIATIONS 75
11. REFERENCES 75
11.1. Publications 75
11.2. Websites 77
APPENDICES - Summary of Notable Players 79
Appendix 1 - Producers / Wholesalers 79
Appendix 2 - Retailers 83
Appendix 3 - Distributors 85
COMPANY PROFILES – Producers / Wholesalers 87
Acheron Wines and Spirits (Pty) Ltd 87
AlcoNCP (Pty) Ltd 89
Beck Family Estates (Pty) Ltd 91
Boland Wingerde Internasionaal (Pty) Ltd 94
De Waal Wines (Pty) Ltd 96
De Wetshof Estate (Pty) Ltd 98
DGB (Pty) Ltd 100
Diageo South Africa (Pty) Ltd 103
Edward Snell and Company (Pty) Ltd 105
Excelsior Marketing (Pty) Ltd 108
Fairview Wines (Pty) Ltd 110
Halewood International South Africa (Pty) Ltd 112
Heineken South Africa (Pty) Ltd 114
Kleine Zalze Wines (Pty) Ltd 116
Lanzerac Estate Investments (Pty) Ltd 118
Morgenster (1711) (Pty) Ltd 120
Namaqua Wines Distribution (Pty) Ltd 123
Newshelf 1167 (Pty) Ltd 124
Oranjerivier Wynkelders (RF) (Pty) Ltd 126
P C Kelders (Pty) Ltd 128
Pernod Ricard South Africa (Pty) Ltd 130
Robertson Wynmakery Landbou Kooperatief Beperk Primary Co-Operative 133
Rustenberg Wines (Pty) Ltd 135
Simonsig Wines (Pty) Ltd 137
South African Breweries (Pty) Ltd (The) 139
South African Distilleries and Wines (S A) (Pty) Ltd 142
Spier Farm Management (Pty) Ltd 145
Stellenbosch Vineyards (Pty) Ltd 147
Tiger Brands Ltd 149
Van Loveren Vineyards (Pty) Ltd 154
Vergelegen Wines (Pty) Ltd 157
Warshay Investments (Pty) Ltd 159
Zidela Wines (Pty) Ltd 161
COMPANY PROFILES – Retailers 163
Beadica 276 CC 163
Big Daddy's Liquors (Pty) Ltd 165
Diamonds Discount Liquor (Pty) Ltd 167
Liquor City-The Liquor Boys CC 170
Massmart Holdings Ltd 179
Picardi Hotelle (Pty) Ltd 184
Picardi Liquors (Pty) Ltd 186
Pick n Pay Stores Ltd 188
Robinson Liquors (Pty) Ltd 193
Shoprite Holdings Ltd 197
SPAR Group Ltd (The) 207
Woolworths (Pty) Ltd 212
COMPANY PROFILES – Distributors 215
Meridian Wine Distribution (Pty) Ltd 215
Really Great Brand Company (Pty) Ltd (The) 218
Vinimark Trading (Pty) Ltd 221
Wines of the World Distributors (Pty) Ltd 224

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.

Introduction

This report focuses on the South African liquor industry, including manufacture, wholesale and retail. Since the onset of the pandemic in March 2020, the liquor industry has been subjected to four liquor bans and several periods in which liquor trading was restricted by the government. The South African Liquor Brand owners Association (Salba) estimates that the bans and trading restrictions cost the industry R45.1bn, or 15.8% of projected sales from March 2020 to July 2021. Based on these figures, retail sales were about R180bn in 2020. As a result of the restrictions and bans, total local liquor consumption (including Botswana, Lesotho, Namibia and Eswatini) decreased by 18% to 3.59 billion litres in 2020. The pandemic has also accelerated growth in no-alcohol and low-alcohol beverages, and led to an increase in ecommerce sales. The ongoing trend in premiumisation continues across all categories. 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.

Introduction

Strengths

• South Africa has a strong beer culture.
• The South African wine industry has shown a commitment to ethical wine production and fair trade, as well as organic production.
• The wine industry has seen good export growth and is making inroads as a global player.
• Wine tourism is well established in the Western Cape.

Weaknesses

• Liquor is a discretionary expense which makes it vulnerable to negative economic conditions.
• Low domestic per capita consumption of wine compared to other wine-producing countries.
• The sector, particularly in the spirits and beer segment, is dominated by a small number of large producers.

Opportunities

• African market for wine, distilled spirits, ready to drink products, cider and commercially-brewed beer provides opportunities for growth.
• Changing consumer preferences provide opportunities for innovation and the creation of new drinks and varieties to grow sales.
• China’s trade tariffs on Australian wine offer South Africa an opportunity to boost wine exports to the East.
• Demand for products (including packaging) that are created sustainably.
• Growth in demand for healthy alternatives in no-alcohol and low-alcohol beverages.
• Growth in online sales, though niche, provides retailers and producers with an alternative route to market.
• Growth in recent years of the black middle class provides opportunities for premium and niche brands and wine.

Threats

• Continued liquor bans and liquor trading restrictions are threatening the survival of the sector (including wine tourism) and have resulted in prices for wine declining.
• Economic difficulties, with the pandemic having suppressed consumer spending.
• Fluctuating exchange rates makes the market very unpredictable to exporters.
• Liquor legislation becoming more restrictive in terms of the minimum drinking age, advertising and liquor trading hours.
• More stringent government tax and excise policy which will lead to higher retail prices and lower margins.
• The growth of the illegal and illicit liquor market, which steals market share from the legal liquor industry.
• The threat of future unrest driven by political and economic uncertainties.

Outlook

In the already tough current environment with consumer spending under pressure, the South African liquor industry faces a difficult future if the government continues to use liquor trading restrictions and bans to limit the spread of the pandemic. While the most recent ban was lifted on 25 July 2021, the industry was still limited to restricted trading from Mondays to Thursdays only, with restaurants and bars restricted to selling alcohol before curfew. Further bans and restrictions are dependent on when the next wave hits (which some predict will be in December 2021), which in turn is dependent on the country’s ability to speed up the vaccination rate. Brewer Heineken expects global volumes and sales to not exceed pre-pandemic levels in 2021. Local brewers could face shortages of raw materials, as farmers signalled their intention to plant a barely crop that is a third smaller than the current year. Raw materials costs such as aluminium and sugar are also climbing. With the number of new plantings of grape vineyards falling year on year, as financially-distressed farmers cut back, the wine sector could face a shortage of some varietals in the next five years, forecasts industry body Vinpro. Wine export council Wines of South Africa says given the bumper wine harvest in 2021, South Africa could grow wine exports (excluding to Botswana, Lesotho, Namibia and Eswatini) to 400 million litres in 2021 from 319 million litres, although still down on the 420 million litres exported in 2018 and 2013’s over 500 million litres.

Outlook

Read More..
The Liquor Industry in South Africa 2021

Full Report

R 6 500.00(ZAR) estimated $340.92 (USD)*

Industry Landscape

R 4 550.00(ZAR) estimated $ 238.64 (USD)*

Industry Organograms

Historical Reports

The Liquor Industry in South Africa 2023-05-17

R 20 000.00(ZAR) estimated $1048.98 (USD)*

View Report Add to Cart

The Liquor Industry in South Africa 2020-02-20

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The Liquor Industry in South Africa 2018-10-30

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The Liquor Industry in South Africa 2017-09-13

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The Liquor Industry in South Africa 2016-07-15

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The Liquor Industry in South Africa 2014-01-22

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
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

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.

Introduction

This report focuses on the entire South African liquor industry, including manufacture, wholesale and retail, which is valued at between R106bn and R129bn depending on the source and may be closer to the upper band due to premiumisation and craft products which accrue higher value sales. Total local liquor consumption increased by 0.7% to 4.27 billion litres in 2018 compared to 2017, and growth in value exceeded growth in volume as per capita consumption declined. The industry is considered mature and dominated by large global companies that provide shareholders with long term positive returns. By this measure the top global beer industry players in 2019 were Molson Coors, Ambev (Brazil) and Anheuser-Busch InBev (AB InBev). The top liquor players, those which produce and distribute beer wine and spirits, all have strong brands, which gives them pricing power, (the ability to continuously increase prices) which is enhanced through premiumisation. However mature markets also display slow growth as disruptive new and innovative entrants and products enter the industry. The global industry was said to be worth US$1.5-trillion revenue in 2019.

Strengths

• South Africa has a strong beer culture.
• The South African wine industry has shown a commitment to ethical wine production and fair trade, as well as organic production.
• The wine industry has seen good export growth and is making inroads as a global player.
• There is an aligned and focused statutory levy system for the industry supporting activities like generic marketing.
• Wine tourism is well established in the Western Cape.

Weaknesses

• Liquor is a discretionary expense which makes it vulnerable to negative economic conditions.
• Low domestic per capita consumption of wine compared to other wine-producing countries.
• South Africa’s global position means there are large distances to export markets.
• The large number of producers in the wine industry makes it hard to build brand “South Africa”.

Opportunities

• African market for wine, distilled spirits, ready to drink products, cider and commercially brewed beer provides opportunities for growth.
• Changing consumer preferences provide opportunities for innovation of new drinks and varieties of existing drinks to grow sales.
• Changing consumer trends towards organic and ethical wine in both national and international markets.
• Growth of the black middle class provides opportunities for premium and niche brands and wine.
• Preferential market access under the Economic Partnership Agreement with the EU increases export opportunities for bottled wine.

Threats

• Continued economic difficulties locally and in South Africa’s main trading partners for liquor exports.
• Fluctuating exchange rates makes the market very unpredictable to exporters.
• For craft brewers lack of effective distribution and real estate to operate in.
• Liquor legislation becoming more restrictive in terms of the minimum drinking age, advertising and liquor trading hours.
• More stringent government tax and excise policy which will lead to higher retail prices and even lower margins.
• The growth of the illegal and illicit liquor market, which steals market share from the legal liquor industry.

Outlook

Investment in the industry continues to fund expansion and innovative, agile and resilient players will survive, regardless of size. However, consolidation is increasing and merger and acquisition activity is forecast to increase. Players will be challenged to continue innovating to maintain volumes and profitability and must accommodate changing consumer requirements for increased health and wellness, address climate change impacts and sustainability, premiumisation, convenience and digital channels and increase access to new products, brands, segments and geographies. There are those who contemplate a world without alcohol by 2050, something difficult to comprehend given the size and scale of the industry and how much a part of our lives it represents.

Read More..
The Liquor Industry in South Africa 2020

Full Report

R 1 900.00(ZAR) estimated $99.65 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.76 (USD)*

Historical Reports

The Liquor Industry in South Africa 2023-05-17

R 20 000.00(ZAR) estimated $1048.98 (USD)*

View Report Add to Cart

The Liquor Industry in South Africa 2021-08-24

R 6 500.00(ZAR) estimated $340.92 (USD)*

View Report Add to Cart

The Liquor Industry in South Africa 2018-10-30

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The Liquor Industry in South Africa 2017-09-13

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The Liquor Industry in South Africa 2016-07-15

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The Liquor Industry in South Africa 2014-01-22

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
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

Report Coverage

The detailed report on the South African liquor industry provides statistics for the sector, describes current conditions and trends, and discusses the impact of new regulations and other factors influencing the success of the sector. Included in the report are profiles of 48 producers, distributors, wholesalers and retailers of alcoholic beverages including the major grocery retailers, major wine and spirits producers such as Distell and DGB as well as numerous independent wine farms.

Introduction

This report focuses on the entire South African liquor industry, including manufacture, wholesale and retail, which is valued at between R106bn and R129bn depending on the source. The industry is considered mature and growth is largely organic. Total 2017 liquor consumed was almost 4.24 billion litres, reflecting growth of 1.9% over 2016 driven by an increasing population, aggressive expansion in retail liquor by the major industry players and product premiumisation. Growth is expected in 2018 despite the poor economic climate and will be aided by currency weakness reflected in rising exports. The wine segment is unsustainable at current input costs and the industry continues to contract and concentrate at various levels, driving further consolidation. The illegal and illicit liquor trade continues to have a major impact on the industry and the fiscus. Industry insiders estimate smuggled and counterfeit products have a 10% to 15% impact in the entry level sub R120.00 spirits category.

Strengths

• South Africa has a strong beer culture.
• The South African wine industry has shown a commitment to ethical wine production and fair trade, as well as organic production.
• The wine industry has seen good export growth and is making inroads as a global player.
• There is an aligned and focused statutory levy system for the industry supporting activities like generic marketing.
• Wine tourism is well established in the Western Cape.

Weaknesses

• Liquor is a discretionary expense which makes it vulnerable to negative economic conditions.
• Low domestic per capita consumption of wine compared to other wine-producing countries.
• South Africa’s global position means there are large distances to export markets.
• The large number of producers in the wine industry makes it hard to build brand “South Africa”.

Opportunities

• African market for wine, distilled spirits, ready to drink products, cider and commercially brewed beer provides opportunities for growth.
• Changing consumer preferences provide opportunities for innovation of new drinks and varieties of existing drinks to grow sales.
• Changing consumer trends towards organic and ethical wine in both national and international markets.
• Growth of the black middle class provides opportunities for premium and niche brands and wine.
• Preferential market access under the Economic Partnership Agreement with the EU increases export opportunities for bottled wine

Threats

• Continued economic difficulties locally and in South Africa’s main trading partners for liquor exports.
• Fluctuating exchange rates makes the market very unpredictable to exporters.
• Liquor legislation becoming more restrictive in terms of the minimum drinking age, advertising and liquor trading hours.
• More stringent government tax and excise policy which will lead to higher retail prices and even lower margins.
• The growth of the illegal and illicit liquor market, which steals market share from the legal liquor industry.

Outlook

VinPro reports that unsustainable average gross income prevents wine producers from implementing necessary capital replacement. This may result in grapevines, buildings and moveables beginning to exceed accepted industry lifespan norms, threatening sustainability. The move to more profitable crops, the increasing age of vines and declining area planted to vines are indicative of an imminent structural shift, as local supply adjusts to meet global and local demand. VinPro forecasts that total hectares will decline to approximately 85,000 ha by 2022 resulting in approximate production declining to 1.30 million tons (2017 1.43 million tons) and a net wine volume reduction of 123 million litres. Continuing tight credit conditions, contracting real disposable income and low consumer and business confidence levels appear set to continue. Consumer spending is likely to remain depressed for the rest of 2018 and GDP growth is expected to be less than 1%. Increased export opportunities are possible as the currency continues to weaken. There are also opportunities in niche segments, although escalating input costs and declining consumer disposable income are almost a certainty. Investment in the industry segments continues, and innovative, agile and resilient players will survive, regardless of size.

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The Liquor Industry in South Africa 2018

Full Report

R 1 900.00(ZAR) estimated $99.65 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.76 (USD)*

Historical Reports

The Liquor Industry in South Africa 2023-05-17

R 20 000.00(ZAR) estimated $1048.98 (USD)*

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The Liquor Industry in South Africa 2021-08-24

R 6 500.00(ZAR) estimated $340.92 (USD)*

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The Liquor Industry in South Africa 2020-02-20

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The Liquor Industry in South Africa 2017-09-13

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The Liquor Industry in South Africa 2016-07-15

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The Liquor Industry in South Africa 2014-01-22

R 1 900.00(ZAR) estimated $99.65 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 14
4.1. Local 14
4.1.1. Corporate Actions 18
4.1.2. Regulations 19
4.1.3. Enterprise Development and Social Economic Development 22
4.2. Continental 24
4.3. International 28
5. INFLUENCING FACTORS 32
5.1. Economic Environment 32
5.2. Health Issues 33
5.3. Illegal and Illicit Liquor Trade 34
5.4. Rising Operating Costs 35
5.5. Technology, Research and Development (R&D) and Innovation 35
5.6. Labour 36
5.7. Cyclicality 39
5.8. Environmental 39
6. COMPETITION 40
6.1. Barriers to Entry 41
7. SWOT ANALYSIS 42
8. OUTLOOK 43
9. INDUSTRY ASSOCIATIONS 43
10. REFERENCES 45
10.1. Publications 45
10.2. Websites 45
APPENDIX 1 – SUMMARY OF MAJOR PLAYERS 48
Producers/Wholesalers of Liquor 48
Retailers 51
Distributors 53
COMPANY PROFILES - PRODUCERS/WHOLESALERS OF LIQUOR 55
BACKSBERG ESTATE CELLARS CC 55
BERFIN WORLDWIDE (PTY) LTD 57
BOLAND WINGERDE INTERNASIONAAL LTD 59
DE WAAL WINES (PTY) LTD 61
DE WETSHOF ESTATE (PTY) LTD 63
DGB (PTY) LTD 65
DIAGEO SOUTH AFRICA (PTY) LTD 68
DISTELL GROUP LTD 70
EDWARD SNELL AND COMPANY (PTY) LTD 73
EXCELSIOR MARKETING (PTY) LTD 76
FAIRVIEW WINES (PTY) LTD 78
GRAHAM BECK ENTERPRISES (PTY) LTD 80
KLEINE ZALZE WINES (PTY) LTD 83
LANZERAC ESTATE INVESTMENTS (PTY) LTD 85
MORGENSTER (1711) (PTY) LTD 87
NCP ALCOHOLS (PTY) LTD 90
NEWSHELF 1167 (PTY) LTD 93
ORANJERIVIER WYNKELDERS CO-OPERATIVE LTD 95
P C KELDERS (PTY) LTD 98
PERNOD RICARD SOUTH AFRICA (PTY) LTD 100
ROBERTSON KOOPERATIEWE WYNMAKERY LTD 103
RUSTENBERG WINES (PTY) LTD 105
SIMONSIG WINES (PTY) LTD 107
SOUTH AFRICAN BREWERIES (PTY) LTD (THE) 109
SPIER FARM MANAGEMENT (PTY) LTD 112
STELLENBOSCH VINEYARDS (PTY) LTD 114
TIGER BRANDS LTD 116
VAN LOVEREN VINEYARDS (PTY) LTD 121
VERGELEGEN WINES (PTY) LTD 123
WARSHAY INVESTMENTS (PTY) LTD 125
ZANDWIJK WINES (PTY) LTD 128
ZIDELA WINES (PTY) LTD 130
COMPANY PROFILES – RETAILERS 132
BEADICA 276 CC 132
BIG DADDY'S LIQUORS (PTY) LTD 134
DIAMONDS DISCOUNT LIQUOR (PTY) LTD 136
LIQUOR CITY-THE LIQUOR BOYS CC 140
MASSMART HOLDINGS LTD 149
PICARDI HOTELLE (PTY) LTD 155
PICARDI LIQUORS (PTY) LTD 158
PICK N PAY STORES LTD 160
ROBINSON LIQUORS (PTY) LTD 165
SHOPRITE HOLDINGS LTD 169
SPAR GROUP LTD (THE) 173
WOOLWORTHS (PTY) LTD 178
COMPANY PROFILES – DISTRIBUTORS 181
COOL WINES (PTY) LTD 181
OCEAN TRADERS INTERNATIONAL AFRICA (PTY) LTD 183
REALLY GREAT BRAND COMPANY (PTY) LTD (THE) 184
VINIMARK TRADING (PTY) LTD 187
WINES OF THE WORLD DISTRIBUTORS (PTY) LTD 189

Report Coverage

The detailed report on the South African Liquor industry provides statistics for the sector, describes current conditions and trends, and discusses the impact of new regulations and other factors influencing the success of the sector. Included in the report are profiles for 32 producers and wholesalers of alcoholic beverages and 12 retailers. Also profiled are five distributors including wine specialists, Cool Wines, Vinimark Trading and Wines of the World Distributors.

Introduction

This report focuses on the entire South African liquor industry, including manufacture, wholesale and retail, which was valued at an estimated R106.1bn in 2016. This is expected to grow by 10.3% in value in 2017 despite the poor economic climate, although per capita consumption of alcohol grew by just 1.3% between 2015 and 2016. In general, the depreciation of the Rand impacted positively on liquor exports but with the adverse effect of raising input costs. The much anticipated merger between South African Breweries (SABMiller) and Anheuser-Busch InBev (AB InBev) was completed in October 2016 and is expected to result in more competition, more acquisitions and significant shifts in the market.

Strengths

• South Africa has a strong beer culture.
• The South African wine industry has shown a commitment to ethical wine production and fair trade, as well as organic production in the wine sector.
• The wine industry has seen good export growth and is making inroads as a global player.
• There is an aligned and focused statutory levy system for the industry supporting activities like generic marketing.
• Wine tourism is well established in the Western Cape.

Weaknesses

• ?
• Liquor is a discretionary expense which makes it vulnerable to negative economic conditions.
• Low domestic per capita consumption of wine compared to other wine-producing countries.
• South Africa’s global position means there are large distances to export markets.
• The large number of producers in the wine industry makes it hard to build brand “South Africa”.

Opportunities

• African market for wine, distilled spirits, RTDs, cider and commercially brewed beer provides opportunities for growth.
• Changing consumer preferences provide opportunities for innovation of new drinks and varieties of existing drinks to grow sales.
• Changing consumer trends towards organic and ethical wine in both national and international markets.
• EPA with Europe increases export opportunities for bottled wine.
• Growth of the black middle class provides opportunities for premium brands and wine.

Threats

• Continued economic difficulties locally and in South Africa’s main trading partners for liquor exports.
• Fluctuating exchange rate makes the market very unpredictable to exporters.
• Liquor legislation becoming more restrictive in terms of the minimum drinking age, advertising and liquor trading hours.
• More stringent government tax and excise policy which will lead to higher retail prices and even lower margins.
• The growth of the illegal and illicit liquor market, which steals market share from the legal liquor industry.

Outlook

The 2.3% decline in consumer spending on non-durable goods including alcoholic beverages during the first quarter of 2017 was a result of tight credit conditions, a contraction in real disposable income and low consumer and business confidence levels. Consumer spending is likely to remain depressed for the rest of 2017 as tough economic conditions continue, and GDP growth is expected to be less than 1%. Increased export opportunities for the liquor industry are likely to result from the recent appreciation of the Rand and the wine industry in particular is expected to benefit from an Economic Partnership Agreement with the EU which could add 100,000 jobs to the economy over the next ten years. However, stakeholders expressed concern over stricter government control on the legal age limit for the consumption of alcohol and a ban on all advertising of alcoholic products.

Read More..
The Liquor Industry in South Africa 2017

Full Report

R 1 900.00(ZAR) estimated $99.65 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.76 (USD)*

Historical Reports

The Liquor Industry in South Africa 2023-05-17

R 20 000.00(ZAR) estimated $1048.98 (USD)*

View Report Add to Cart

The Liquor Industry in South Africa 2021-08-24

R 6 500.00(ZAR) estimated $340.92 (USD)*

View Report Add to Cart

The Liquor Industry in South Africa 2020-02-20

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The Liquor Industry in South Africa 2018-10-30

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The Liquor Industry in South Africa 2016-07-15

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The Liquor Industry in South Africa 2014-01-22

R 1 900.00(ZAR) estimated $99.65 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 19
4.1. Local 19
4.1.1. Corporate Actions 25
4.1.2. Regulations 26
4.1.3. Enterprise Development and Social Economic Development 30
4.2. Continental 32
4.3. International 36
5. INFLUENCING FACTORS 40
5.1. Economic Environment 40
5.2. Rising Operating Costs 40
5.3. Illegal and Illicit Alcohol 41
5.4. Advertising 42
5.5. Technology, Research and Development (R&D) and Innovation 43
5.6. Labour 45
5.7. Cyclicality 49
5.8. Ethical Trade Initiatives 49
5.9. Environmental Concerns 50
6. COMPETITION 51
6.1. Barriers to Entry 52
7. SWOT ANALYSIS 53
8. OUTLOOK 54
9. INDUSTRY ASSOCIATIONS 55
10. REFERENCES 56
10.1. Publications 56
10.2. Websites 57
APPENDIX 1 59
Black-Owned Wine Brands 59
APPENDIX 2 61
South African Liquor Brands Owners Association Members (SALBA) 61
COMPANY PROFILES - PRODUCERS/WHOLESALERS OF LIQUOR 62
BACKSBERG ESTATE CELLARS CC 62
BERFIN WORLDWIDE (PTY) LTD 64
BOLAND WINGERDE INTERNASIONAAL LTD 66
DE WAAL WINES (PTY) LTD 68
DE WETSHOF ESTATE (PTY) LTD 70
DGB (PTY) LTD 72
DIAGEO SOUTH AFRICA (PTY) LTD 75
DISTELL GROUP LTD 77
EDWARD SNELL AND COMPANY (PTY) LTD 81
EXCELSIOR MARKETING CC 84
FAIRVIEW WINES (PTY) LTD 86
GRAHAM BECK ENTERPRISES (PTY) LTD 88
KLEINE ZALZE WINES (PTY) LTD 91
LANZERAC ESTATE INVESTMENTS (PTY) LTD 93
LUSAN PREMIUM WINES (PTY) LTD 95
MORGENSTER (1711) (PTY) LTD 97
NCP ALCOHOLS (PTY) LTD 99
NEWSHELF 1167 (PTY) LTD 102
ORANJERIVIER WYNKELDERS CO-OPERATIVE LTD 104
P C KELDERS (PTY) LTD 107
PERNOD RICARD SOUTH AFRICA (PTY) LTD 109
ROBERTSON KOOPERATIEWE WYNMAKERY LTD 111
RUSTENBERG WINES (PTY) LTD 113
SIMONSIG LANDGOED (PTY) LTD 115
SOUTH AFRICAN BREWERIES (PTY) LTD (THE) 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
COMPANY PROFILES – RETAILERS 137
BEADICA 276 CC 137
BIG DADDY'S LIQUORS (PTY) LTD 139
DIAMONDS DISCOUNT LIQUOR (PTY) LTD 141
LIQUOR CITY-THE LIQUOR BOYS CC 144
MASSMART HOLDINGS LTD 150
PICARDI HOTELLE (PTY) LTD 156
PICARDI LIQUORS (PTY) LTD 159
PICK N PAY STORES LTD 161
ROBINSON LIQUORS (PTY) LTD 166
SHOPRITE HOLDINGS LTD 169
SPAR GROUP LTD (THE) 173
WOOLWORTHS (PTY) LTD 178
COMPANY PROFILES – DISTRIBUTORS 181
BRANDHOUSE BEVERAGES (PTY) LTD 181
COOL WINES (PTY) LTD 183
REALLY GREAT BRAND COMPANY (PTY) LTD (THE) 185
VINIMARK TRADING (PTY) LTD 188
WINES OF THE WORLD DISTRIBUTORS (PTY) LTD 191

Report Coverage

The Liquor Industry investigates the manufacture, wholesale and retail of alcoholic beverages, focusing on recent developments and factors influencing the success of the formal sector. The report profiles 35 role players, including market leader SABMiller whose merger with Anheuser-Busch InBev (AB InBev) should be finalised before the end of 2016. Also profiled are the country’s leading spirits and wine producers as well as retailers and distributors of local and imported brands.

Introduction

This report focuses on the entire South African liquor industry, including manufacture, wholesale and retail, which was valued at an estimated R96.5bn in the 2014/2015 financial year. Challenging trading conditions in a depressed economy mean that on the whole, per capita consumption of alcohol decreased by 1% between 2014 and 2015. Although in general the depreciation of the Rand impacted positively on liquor exports, it had the adverse effect of raising input costs. Structurally, 2015/2016 saw some changes in the market with the announcement of the merger between South African Breweries (SAB) and Anheuser-Busch InBev (AB InBev) and the splitting of Brandhouse into a beer and spirits sector.

Strengths

• In the beer sector there are large companies with a global presence.
• South Africa has a strong beer culture.
• The relevant natural resources are readily available.
• The South African liquor industry is one of the global forerunners in terms of environmental legislation and industry commitment to fair trade, as well as organic production in the wine sector.
• There has been exceptional export growth and the South African wine industry is making inroads as a global player.
• There is an aligned and focused statutory levy system for the industry supporting activities like generic marketing.
• Wine tourism is well-established in Western Cape.

Weaknesses

• Lack of coordination and consolidation in the international marketing of wine.
• Lack of serious investment due to small margins.
• Liquor is a discretionary expense which makes it vulnerable to negative economic conditions when consumer spending is under pressure.
• Low domestic per capita consumption compared to other wine-producing countries.
• Price competition amongst South African producers and high unit costs renders the wine industry increasingly marginal, a “price taker” and economically unstable.
• Relative newcomer to the international wine market and has to compete with wine producers with established markets.
• South Africa’s global position means there are large distances to export markets.
• The BEE process put forward by government is still being implemented. Many wineries are still unsure or unaware of the full implications of BEE.

Opportunities

• African market for wine, distilled spirits, RTDs, cider and commercially brewed beer provides opportunities for growth.
• Changing consumer preferences provide opportunities for innovation of new drinks and varieties of existing drinks to grow sales.
• Changing consumer trends towards organic and Fairtrade wine in both national and international markets.
• Growth of the black middle class provides opportunities for premium brands and wine.
• Increase in demand for red wine globally.
• Increasing exports to USA, which is expected to be the largest wine-consuming nation by 2020.
• Social media presents new marketing channels.
• Wine tourism in other wine-producing parts of South Africa.

Threats

• Continued economic difficulties in developed economies and South Africa’s main trading partners for liquor exports.
• Fluctuating exchange rate makes the market very unpredictable to exporters.
• Liquor legislation becoming more restrictive in terms of the minimum drinking age, advertising and liquor trading hours.
• More stringent government tax and excise policy which will lead to higher retail prices and even lower margins.
• The growth of the illegal and illicit liquor market, which steals market share from the legal liquor industry.
• Threat of labour action which may disrupt operations and further increase input costs.

Outlook

A challenging global macroeconomic environment leading to constrained conditions and subdued consumer spending is expected to result in tough trading conditions. According to the Bureau of Economic Research (BER), real growth in consumer spending on non-durable goods including alcoholic beverages is expected to decelerate from 2.3% in 2015 to 1.3% in 2016. Although the short-term domestic outlook remains uncertain and pessimistic, the prospects for the liquor industry in the medium-term are more optimistic given some of the future duty-free market agreements for South Africa’s exports which could add a further 100,000 jobs to the economy over the next ten years. Stakeholders expressed concern over stricter government control on the legal age limit and the advertising of alcohol which could threaten growth, as could an increase in taxation.

Read More..
The Liquor Industry in South Africa 2016

Full Report

R 1 900.00(ZAR) estimated $99.65 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.76 (USD)*

Historical Reports

The Liquor Industry in South Africa 2023-05-17

R 20 000.00(ZAR) estimated $1048.98 (USD)*

View Report Add to Cart

The Liquor Industry in South Africa 2021-08-24

R 6 500.00(ZAR) estimated $340.92 (USD)*

View Report Add to Cart

The Liquor Industry in South Africa 2020-02-20

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The Liquor Industry in South Africa 2018-10-30

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The Liquor Industry in South Africa 2017-09-13

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The Liquor Industry in South Africa 2014-01-22

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 19
4.1. Local 19
4.1.1. Corporate Actions 24
4.1.2. Regulations 25
4.1.3. Enterprise Development and Social Economic Development 29
4.2. Continental 30
4.3. International 35
5. INFLUENCING FACTORS 39
5.1. Implications of Amendments to the National Road Traffic Act Regulations 39
5.2. Economic Environment 40
5.3. Branding, Marketing and Advertising 40
5.4. Illegal and illicit liquor 42
5.5. Rising Operating Costs 43
5.6. Labour 44
5.7. Technology, Research and Development (R&D) and Innovation 46
5.8. Cyclicality 48
5.9. Environmental Concerns 48
6. COMPETITION 50
6.1. Barriers to Entry 52
7. SWOT ANALYSIS 53
8. OUTLOOK 54
9. INDUSTRY ASSOCIATIONS 55
10. REFERENCES 56
10.1. Publications 56
10.2. Websites 57
APPENDIX 1 59
Black-Owned Wine Brands 59
APPENDIX 2 60
South African Liquor Brands Owners Association Members (SALBA) 60
COMPANY PROFILES - PRODUCERS/WHOLESALERS OF LIQUOR 61
AFRICAN PRIDE WINES (PTY) LTD 61
BACKSBERG ESTATE CELLARS CC 63
Boland Wingerde Internasionaal Ltd 65
De Waal Wines (Pty) Ltd 67
De Wetshof Estate (Pty) Ltd 69
DGB (Pty) Ltd 71
Diageo South Africa (Pty) Ltd 74
Distell Group Ltd 76
Edward Snell and Company (Pty) Ltd 80
Excelsior Marketing CC 83
Fairview Wines (Pty) Ltd 85
Graham Beck Enterprises (Pty) Ltd 87
Jacques Germanier (Pty) Ltd 90
Kleine Zalze Wines (Pty) Ltd 92
KWV South Africa (Pty) Ltd 94
La Tour International Investments (Pty) Ltd 97
Lanzerac Estate Investments (Pty) Ltd 99
Lusan Premium Wines (Pty) Ltd 101
Morgenster (1711) (Pty) Ltd 103
NCP Alcohols (Pty) Ltd 105
Newshelf 1167 (Pty) Ltd 108
Oranjerivier Wynkelders Co-Operative Ltd 110
P C Kelders (Pty) Ltd 113
Pernod Ricard South Africa (Pty) Ltd 115
Robertson Kooperatiewe Wynmakery Ltd 118
Rustenberg Wines (Pty) Ltd 120
Simonsig Estate (Pty) Ltd 122
South African Breweries (Pty) Ltd (The) 124
Spier Wines (Pty) Ltd 128
Stellenbosch Vineyards (Pty) Ltd 130
Tiger Brands Ltd 132
Van Loveren Vineyards (Pty) Ltd 137
Vergelegen Wines (Pty) Ltd 139
Zandwijk Wines (Pty) Ltd 141
COMPANY PROFILES – RETAILERS 143
Beadica 276 CC 143
Big Daddy's Liquors (Pty) Ltd 145
Diamonds Discount Liquor (Pty) Ltd 147
Liquor City-The Liquor Boys CC 150
Massmart Holdings Ltd 156
Picardi Hotelle (Pty) Ltd 162
Picardi Liquors (Pty) Ltd 164
Pick n Pay Stores Ltd 166
Robinson Liquors (Pty) Ltd 170
Shoprite Holdings Ltd 174
SPAR Group Ltd (The) 180
Woolworths (Pty) Ltd 185
COMPANY PROFILES – DISTRIBUTORS 188
Brandhouse Beverages (Pty) Ltd 188
Cool Wines (Pty) Ltd 190
Really Great Brand Company (Pty) Ltd (The) 192
Vinimark Trading (Pty) Ltd 195
Wines of the World Distributors (Pty) Ltd 198

Introduction

The South African liquor industry is generally divided into three main categories namely:
• Beer (malt or sorghum) including lagers, craft beer and brewed ales;
• Wine; and
• Spirits which are distilled grain, fruit or vegetables with at least 20% alcohol by volume. Spirits are segmented into white spirits such as vodka and gin, brown spirits such as brandy and rum, whiskey and flavoured alcoholic beverages, including ready to drink (RTD) beverages such as spirit coolers and ciders. In the beer and spirit segments of the liquor industry, there are a few large players that hold a large market share. 99% of South Africa’s beer market is dominated by the duopoly of South African Breweries (SAB), part of SAB Miller, and Brandhouse. The wine industry, concentrated mainly in the Western Cape, is more fragmented. South Africa is classified in international wine circles as a ‘new world’ wine producer, along with Australia, New Zealand, Chile, Argentina and the United States of America (USA). The sector is characterised by a large number of informal alcoholic beverage producers and on-premise and off-premise retailers. These informal taverns and shebeens are often unlicensed and an estimated 60% of all alcohol sold in South Africa is sold through these illegal outlets.

Strengths

• In the beer sector there are large companies with a global presence.
• South Africa has a strong beer culture.
• South Africa is a world leader in the production of organic wines and Fairtrade certification.
• The relevant natural resources are readily available.
• The South African liquor industry is one of the global forerunners in terms of environmental legislation and industry commitment to fair trade.
• Wine tourism is well-established in Western Cape.

Weaknesses

• Lack of coordination and consolidation in the international marketing of wine.
• Liquor is a discretionary expense which makes it vulnerable to negative economic conditions when consumer spending is under pressure.
• Low domestic per capita consumption compared to other wine producing countries.
• Relative newcomer to the international wine market and has to compete with wine producers with established markets.
• South Africa’s global position means there are large distances to export markets.
• The import market is negatively affected by the strong Rand.

Opportunities

• African market for wine, distilled spirits, RTDs, cider and commercially brewed beer provides opportunities for growth.
• Changing consumer preferences provide opportunities for innovation of new drinks and varieties of existing drinks to grow sales.
• Changing consumer trends towards organic and Fairtrade wine in both national and international markets.
• Good trade relations with new emerging wine markets such as Brazil, China and India provide new markets for South African wine.
• Growth of the black middle class provides opportunities for premium brands and wine.
• Opportunities to establish new grape varieties and growing regions as a result of climate change.
• Social media presents new marketing channels.
• Wine tourism in other wine-producing parts of South Africa.

Threats

• Continued economic difficulties in developed economies and South Africa’s main trading partners for liquor exports.
• Implications of AgriBEE code may have negative financial implications for smaller players.
• Liquor legislation becoming more restrictive in terms of advertising and liquor trading hours.
• More stringent government tax and excise policy which will lead to higher retail prices and even lower margins.
• The growth of the illegal and illicit liquor market, which steals market share from the legal liquor industry.
• Threat of labour action which may disrupt operations and further increase input costs.

Outlook

Consumer spending, which drives about 65% of South Africa’s economy, is under pressure, and it is therefore estimated that the liquor industry will grow no more than 2% in 2014. It is the black higher-income market that is expected to drive both premium beer and wine growth. Analysts predict that export volumes of packaged natural wine will increase by 2.1% and the strong demand for bulk wine is expected to continue especially after the record export volumes of 2013. Growing consumer awareness of health issues is expected to increase sales of RTD and low-alcohol liquor products. Overall, tough trading conditions are expected to increase competition in the liquor industry. Players are likely to increase marketing and branding efforts and the research and development of new products will become even more important. A focus on the affordability of products as disposable income dwindles is also expected. A number of other challenges face the industry in 2014: regulatory issues threaten to limit advertising and the trading conditions of the industry and increases in excise duties, raw material prices and input costs will place further pressure on margins, especially for smaller companies. As a result, respondents believe that further consolidation in the industry is likely.

The Liquor Industry in South Africa 2014

Full Report

R 1 900.00(ZAR) estimated $99.65 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.76 (USD)*

Historical Reports

The Liquor Industry in South Africa 2023-05-17

R 20 000.00(ZAR) estimated $1048.98 (USD)*

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The Liquor Industry in South Africa 2021-08-24

R 6 500.00(ZAR) estimated $340.92 (USD)*

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The Liquor Industry in South Africa 2020-02-20

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The Liquor Industry in South Africa 2018-10-30

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The Liquor Industry in South Africa 2017-09-13

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The Liquor Industry in South Africa 2016-07-15

R 1 900.00(ZAR) estimated $99.65 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
1.1. Industry Supply Chain 1
2. SIZE OF THE INDUSTRY 2
2.1. Imports 7
2.2. Exports 8
3. STATE OF THE INDUSTRY 10
3.1. Local 10
3.1.1. Corporate Actions 14
3.1.2. Regulations 15
3.1.3. Black Economic Empowerment 16
3.2. Continental 18
3.3. International 20
4. INFLUENCING FACTORS 22
4.1. Regulation 22
4.2. Economic Environment 22
4.3. Illegal and Illicit Liquor 23
4.4. Branding, Marketing and Advertising 23
4.5. Labour Action and Resources 24
4.6. Rising Input Costs 25
4.7. Socio-Cultural Environment 25
4.8. Information Technology 27
4.9. Cyclicality 27
5. COMPETITION 27
5.1. Barriers to Entry 28
5.2. Research and Development (R&D) and Innovation 29
6. SWOT ANALYSIS 30
7. OUTLOOK 30
8. INDUSTRY ASSOCIATIONS 31
9. REFERENCES 32
9.1. Publications 32
9.2. Websites 33
APPENDIX 1 34
South African Liquor Brands Owners Association (SALBA) 34
APPENDIX 2 35
Industry Association for Responsible Alcohol Use (ARA) Members 35
APPENDIX 3 38
Black-Owned Wine Brands 38
ORGANOGRAM 30510, 3052 & 61222A 39
Manufacturers and Wholesalers of Wine and Spirits 39
COMPANY PROFILES 42
AFRICAN PRIDE WINES (PTY) LTD 42
BACKSBERG ESTATE CELLARS CC 44
BOLAND WINGERDE INTERNASIONAAL LTD 46
BOSCHENDAL (PTY) LTD 48
CAPEVIN HOLDINGS LTD 50
DE WAAL WINES (PTY) LTD 52
DE WETSHOF ESTATE (PTY) LTD 53
DGB (PTY) LTD 55
DIAGEO SOUTH AFRICA (PTY) LTD 57
DISTELL GROUP LTD 59
EDWARD SNELL & CO (PTY) LTD 62
EXCELSIOR MARKETING CC 64
FAIRVIEW TRUST (THE) 65
GRAHAM BECK ENTERPRISES (PTY) LTD 66
JACQUES GERMANIER (PTY) LTD 68
KLEINE ZALZE WINES (PTY) LTD 70
KWV SOUTH AFRICA (PTY) LTD 71
LA TOUR INTERNATIONAL INVESTMENTS (PTY) LTD 73
LANZERAC ESTATE INVESTMENTS (PTY) LTD 75
LUSAN PREMIUM WINES (PTY) LTD 76
MORGENSTER (1711) (PTY) LTD 78
NCP ALCOHOLS (PTY) LTD 80
NEWSHELF 1167 (PTY) LTD 82
ORANGE RIVER CELLARS CO-OPERATIVE LTD 84
PC KELDERS (PTY) LTD 86
PERNOD RICARD SOUTH AFRICA (PTY) LTD 87
ROBERTSON COOPERATIVE WINERY LTD 89
RUSTENBERG WINES (PTY) LTD 90
SIMONSIG ESTATE (PTY) LTD 91
SOUTH AFRICAN BREWERIES (PTY) LTD (THE) 92
SPIER WINES (PTY) LTD 94
STELLENBOSCH VINEYARDS (PTY) LTD 96
TIGER BRANDS LTD 98
VAN LOVEREN VINEYARDS (PTY) LTD 101
VERGELEGEN WINES (PTY) LTD 103
ZANDWIJK WINES (PTY) LTD 105
ORGANOGRAM 61222B 106
Wholesale Trade in Liquor – Distributors Only 106
COMPANY PROFILES 107
BRANDHOUSE BEVERAGES (PTY) LTD 107
COOL WINES (PTY) LTD 109
REALLY GREAT BRAND COMPANY (PTY) LTD (THE) 110
VINIMARK TRADING (PTY) LTD 112
WINES OF THE WORLD DISTRIBUTORS (PTY) LTD 114
ORGANOGRAM 62204 116
Liquor Retailers 116
COMPANY PROFILES 117
BIG DADDY'S LIQUORS (PTY) LTD 117
DIAMONDS DISCOUNT LIQUOR (PTY) LTD 118
LIQUOR CITY-THE LIQUOR BOYS CC 120
MASSTORES (PTY) LTD 124
PICARDI HOTELS (PTY) LTD 126
PICARDI LIQUORS (PTY) LTD 127
PICK 'N PAY STORES LTD 130
ROBINSON LIQUORS (PTY) LTD 133
SHOPRITE HOLDINGS LTD 135
SIMPSON'S BOTTLE STORE CC 139
SPAR GROUP LTD (THE) 141
WOOLWORTHS (PTY) LTD 145