Beverages - Wesgro.co.za Beverages.pdf · followed by alcoholic beverages at ZAR16.4bn. The largest...

Beverages

Executive Summary

Soft drinks are forecast to be the largest sales category in South Africa reaching ZAR16.6bn in 2020f,

followed by alcoholic beverages at ZAR16.4bn.

The largest beverage companies in South Africa include SABMiller, Pioneer Foods, Tiger Brands etc.

South Africa has the highest beer consumption in Africa with 3.1 billion litres consumed. Value growth

is expected to reach 8.8% in 2016 according to Euromonitor, 2016.

South Africa and the Western Cape are net exporters of beverages exporting ZAR20.24bn and

ZAR13.27bn (66% of national) respectively.

The top three beverage exports from South Africa on HS 6 level were:

Bottled wine (ZAR5.9bn)

Bulk wine (ZAR2.6bn)

Undenatured ethyl alcohol (ZAR1.2bn)

The top three beverage exports from the Western Cape were:

Bottled wine (ZAR5.8bn)

Bulk wine (ZAR2.5bn)

Cider, perry & mead (ZAR0.8bn)

South Africa is a net recipient of investment in the beverages sector receiving ZAR6.38bn in the last

decade (2005-2015). There was one investment made into the Western Cape by Vina Concha y Toro

into the wine sector worth ZAR223m.

South Africa invested in 12 projects in the global beverage sector with three quarters of these

investments being made by Western Cape companies, namely Distell, Origin Wines, Lourensford

Wines and Bright World.

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Contents

1. Sector Overview ........................................................................................................... 3

1.1 Global overview ...................................................................................................... 3

1.2 South Africa Overview ............................................................................................ 4

1.2.1. Key Companies in South Africa............................................................................... 7

2. Trade ............................................................................................................................. 9

2.1 Global trade of beverages ...................................................................................... 9

2.2 South African beverage trade ............................................................................... 11

2.3 Western Cape Trade of Beverages ....................................................................... 13

3. Foreign Direct Investment (FDI) ................................................................................ 16

3.1 Global FDI ............................................................................................................ 16

3.2 South Africa’s FDI in the beverages sector ........................................................... 19

3.2.1 Inward investment ...................................................................................................... 19

3.2.2 Outward investment ................................................................................................... 20

3

1. Sector Overview

1.1 Global overview

Global beverage sales have been driven by alcoholic drinks followed closely by soft drinks. America and Western

Europe are drinking less mainstream beer on average, the wider beer industry seems to have been re-invigorated

by the success of craft beer, which as an industry has had more success in capturing the evolution of consumers'

tastes and preferences. The ability of craft beer to register sales growth despite this trend reflects its favourable

performance.

While commercial beer is on the decline in developed countries, beer has generally done quite well across most of

the big developing economies over recent years (with the exception of Russia), which has been supported

SABMiller's emerging-markets-centric business. While the average Sub-Saharan African and Asian consumer is

either drinking more beer or drinking more expensive beer, the average Western European is drinking less beer

than in recent years. Premium whisky has been alcohol's best performing global areas over the past few years. It

is no surprise that global spirits giants, Diageo and Pernod Ricard, are increasing their investment into whisky.

Premium blends of Scotch whisky are particularly popular in countries such as China and India.

Soft Drinks

Despite volatility in leading markets and an accelerating trend towards healthier beverages, the global soft drink

industry demonstrated stable volume growth in 2015. Global soft drinks volumes expanded by 4% in 2014, in line

with the industry’s performance since 2011 and a rate that is expected to continue over the foreseeable future. In

the simplest terms, bottled water is sustaining the soft drinks industry. The majority of all ready-to-drink (RTD)

volume growth experienced in 2014-2015 was the result of bottled water sales. Premium brands and enhanced

waters are creating value opportunities in this category. Markets in Southeast Asia, the Middle East and Africa will

be an important part of volume growth over the long term.

Carbonated soft drinks are in a tail spin. Global growth reached its lowest point of the historic review period in 2015.

Consumers are flocking to waters, teas and alternative beverage options perceived as both healthy and natural.

Fruit Juice

The global juice industry is facing a two-track growth story, as Asian demand for flavourful and functional juice

drinks offsets declining volumes of 100% juice in many developed markets. Flavour and function-driven innovation

in low juice content beverages – as well as premium “superfruit” 100% juices – will sustain growth in the category.

Total juice volumes grew by less than 1% in 2014, with a decline in 100% juice and a significant slowdown in the

growth of juice drinks. While fruit flavours were the main area of growth in flavoured water and carbonates,

traditional juices failed to benefit from the consumer interest in fruit beverages.

Alcoholic Drinks

In 2014, emerging markets continued to account for the majority of global volumes (around 63%), while developed

markets contributed the most to total value sales (around 55%). This emphases the need for emerging market

expansion, but highlights the continuing importance of developed countries and that a balance should be

maintained.

Source: Euromonitor, 2016

4

Source: Euromonitor, 2015

1.2 South Africa Overview

South Africa’s beverage sales follow a similar trend as global sales, with soft drinks and alcoholic drinks being the

most sold beverages. Fruit/vegetables and bottled water started off at a low base in 2008 and have been showing

steady growth since. In the future, higher value products such as energy drinks are likely to become more important

players across the soft drinks industry.

The weakening of South Africa's consumer outlook will put pressure on growth in the drinks industry in 2016. There

are likely to be higher industry risks in the soft drinks segment as the market is exposed to the growing global

sugary drinks tax debate. The coffee retail industry as well as the alcohol industry will remain resilient on the back

of a growing on-the-go breakfast culture as well as the alcohol industry's exposure to export markets.

In his 2016 budget speech, Finance Minister Pravin Gordhan announced that a sugar tax will be levied with effect

from 1 April 2017. A sugar tax has been mooted to help curb the tide of obesity in SA. Sweetened Sugar beverages

(SSBs) include the following: still and carbonated soft drinks, fruit juices, sports drinks, energy drinks and vitamin

waters, sweetened ice tea, lemonade, cordials and squashes (Fin24, 2016). The purchase of sugar drinks does

not form part of a consumer's staple food, and can thus be avoided by low-income consumers, while higher income

consumers would be relatively less price-sensitive. Nevertheless, there is likely to be a negative effect on South

Africa's carbonated soft drinks industry in 2017.

The table below shows South African beverage sales from 2008 forecast to 2020. Carbonated drinks follow closely

on alcoholic beverage sales with a forecast ZAR8.6bn worth of sales in 2020. Alcoholic beverages were the largest

drinks category with sales forecast to be worth ZAR16.4bn in 2020.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Soft Drinks (USDm) 380 131 415 569 414 351 450 551 498 389 531 248 562 085 595 390 630 431 667 548

Hot Drinks (USDm) 88 614 98 866 98 774 109 143 125 920 133 972 141 533 149 761 158 260 167 470

Alcoholic Drinks (USDm) 491 924 539 475 526 444 564 820 612 416 644 415 677 054 714 096 754 851 802 004

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GLOBAL BEVERAGE RETAIL VALUE RSP, 2007-2016

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Source: Business Monitor International, 2016

Alcoholic drinks

South Africa's alcoholic drinks industry is dominated by the wine and beer sectors with these sectors estimated to

experience the highest value growth in 2016 of 11.2% and 8.8% respectively (Euromonitor, 2016). Sawis attributed

some of the growth in wine value to new consumers in the sweet red and rosé sector.

According to Sawis, South Africans consumed a combined 4 billion litres of alcohol in 2015, totalling R96.5 billion

worth of alcohol, this is up from about 3.5 billion litres in 2006, worth R46.9 billion. South Africa remains a beer

drinking nation, though, with beer sales totalling R52.7 billion in 2015, with 3.1 billion litres consumed. 77.7% of

all alcohol consumed in 2015 was beer – while it accounts for 54.6% of the market share in terms of value. The

beer market, in terms of both volume and value is larger than all other alcohol categories combined (SAWIS,

2016).

South Africa's wine industry, based almost exclusively in the Western Cape, has a global reputation for output and

quality. The top five high-priced brands all come from the Distell Group. Distell Group currently has around a 40%

share of South Africa's premium and super-premium wine markets. It has an annual production capacity of around

180million litres.

SABMiller dominates the beer industry with a market share of nearly 90% through its South African Breweries unit

with competition coming from Heineken and Diageo. In early 2009, Heineken joined forces with alcoholic drinks

major Diageo in a 75:25 joint venture to enter South Africa. Although it is not very well documented craft beer has

seen an increase availability, consumption and marketing, also suggesting the evolving tastes of the higher income

consumers.

Despite being a large exporter of alcoholic beverages, producing some of the most globally recognised brands,

domestic consumption of alcohol remains relatively low, and the prominence of the informal sector continues to be

a concern. Rising household incomes over the long term should feed through to the beer sector in particular,

especially since SABMiller is making a concerted effort to lure low-income consumers. The growth of the middle

class should also provide domestic impetus to the wine industry. BMIResearch (2016) forecast steady increase in

both volume and value sales of alcoholic drinks in South Africa. Short-term sales will remain dependent on the

wider economic situation, with consumer spending impacted by elevated unemployment levels, among other

2008 2009 2010 2011 2012 2013 2014 2015 2016f 2017f 2018f 2019f 2020f

Alcoholic drinks 5.30 6.20 7.00 7.90 8.80 9.70 10.50 11.20 11.70 12.60 13.90 15.10 16.40

Carbonated drinks 1.66 2.01 2.12 2.33 2.33 3.69 4.56 4.77 5.00 5.67 6.50 7.47 8.58

Fruit and vegetable juices 4.19 4.50 5.23 5.58 6.13 5.96 6.06 6.41 6.68 6.94 7.33 7.68 7.93

Coffee 2.04 2.13 2.24 2.54 2.79 2.66 2.69 2.80 2.90 2.98 3.10 3.19 3.25

Tea 1.99 2.26 2.32 2.47 2.75 2.73 2.67 2.80 2.88 2.93 3.01 3.07 3.09

Mineral or spring waters 0.03 0.03 0.03 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04

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SOUTH AFRICAN BEVERAGE SALES, 2008-2020f

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factors. On a positive note, marketing and advertising is well developed, as is the mass grocery retail industry,

which will continue to support the market's development.

According to SAWIS (2013), currently there are 100,568 hectares of vines producing wine grapes under cultivation

in South Africa over an area some 800 kilometres in length. White varietals constitute 55.6% of the plantings for

wine, while red varietals account for 44.4% of the national vineyard. South Africa is ranked the 9th largest global

producer of wine and accounts for 3.8% of global wine production. According to Western Cape Business (2013),

there are over 3,500 wine producers in South Africa, with the large majority located in the Western Cape. South

Africa’s wine sector contributes ZAR4.5bn indirectly to tourism. The EU accounted for over 56% of South Africa’s

exports of wine in 2015. The United Kingdom was South Africa’s largest export market for wine in 2015, accounting

for 17% which is expected to increase in 2016 due to the increase in duty free quotas from the present 50 million

litres to 110 million litres a year.

According to SAWIS, on an average cost per litre basis, this is how South African alcohol compared in 2016:

Whisky – R225.34

Rum – R190.87

Brandy – R160.40

Vodka – R143.32

Liqueurs – R134.35

Gin – R115.20

Cane – R112.33

Sparkling Wine – R103.62

Fortified Wine – R48.90

Ready to Drink Wine – R29.76

Natural Wine – R29.61

Beer – R17.01

Source: Sawis, 2016

Soft drinks

According to BMIResearch the following annual growth rates for volume and value sales for 2016 apply:

Soft drinks volume sales: +7.46%

Soft drinks value sales: +13.38%

Fruit juice volume sales: +12.62%

Fruit juice value sales: +18.49%

Bottled water volume sales: +9.92%

Bottled water value sales: +15.66%

Carbonates volume sales: +4.55%

Carbonates value sales: +10.01%

The soft drinks industry is dominated by carbonates, led by Coca-Cola. SABMiller-owned Amalgamated Beverage

Industries (ABI) accounts for around 60% of Coca-Cola's sales in South Africa. PepsiCo’s products are bottled by

Pioneer Foods and hold a market share of approximately 5%. South African based Shoreline Beverages is fairly

well established and, led by its Coo-ee brand, is particularly strong in the KwaZulu-Natal region.

Traditional carbonates remain the most popular and affordable segment among South Africa’s low-income majority.

But this trend is set to be challenged by the growth of health consciousness and rise of the non-carbonates sector,

specifically fresh juices, bottled waters and energy drinks (Euromonitor, 2015).

Fruit juices and bottled water are expected to perform strongly through to 2016 with 18.5% and 15.7% value growth,

boosted by increases in health-consciousness and investment into marketing. It must be noted that relative to the

maturing carbonates segment, these sectors begin from a lower base. Per capita consumption of carbonates is

expected to grow from about 39 litres in 2011 to about 50 litres in 2016. Carbonates continue to play a pivotal role

in driving growth in the wider soft drinks industry, fruit juices and bottled water are expected to perform very strongly

as the wider soft drinks industry continues to segment.

7

Per capita consumption of bottled water is expected to nearly double to 28 litres by 2016, from about 16 litres in

2011, which highlights just how fast the industry is growing (BMIResearch, 2016). The outlook for fruit juices is

equally strong. Iced tea experienced growth of 12.5% in the year up to June 2014. Clover however continued to

lose market share for its Manhattan Iced Tea brand (Who Owns Whom, 2015). Western Cape manufacturer Bos

has grown to be South Africa’s leading iced tea manufacturer since the rooibos brand was launched in 2010. Two

novel products were launched in 2014, Bos Sports, which is both an iced tea and a sports drink, and Bos Plus

containing natural extracts such as ginseng, guarana, ginko biloba and gotu kola creating a product which crosses

the line between iced tea and energy drink.

Ingredients for the soft drink sub-sector are sourced from agro-processing industries such as Illovo Sugar or

Tongaat Hulett. Granor Passi is the largest supplier of fruit juices and concentrates and supplies other products

such as citrus cells and cold-pressed essential oils. Other ingredients such as colour, flavours and preservatives

are supplied by specialist food suppliers (Who Owns Whom, 2016).

Hot drinks

The hot drinks market in South Africa is dominated by coffee, per capita consumption is estimated to be around

0.7kg per annum, followed by tea (0.5kg). Both markets are unsaturated by Western standards in terms of per

capita consumption volumes.

Key players in the hot drinks market include local affiliates of multinationals Nestlé, with the Nescafe range, and

Unilever (with Joko, Glen and Lipton tea). The Nescafe brands include Nescafe Classic and Ricoffy, the latter of

which is also present in the non-coffee hot beverages segment. Nestlé's Milo, Nesquik and hot chocolate further

complement this range.

National Brands Ltd, a subsidiary of Avi Ltd, is the hot drinks market leader, with brands including Five Roses.

According to Avi, Five Roses is the widest-ranging tea offering in the country, including black loose and bag tea,

specialty teas and rooibos tea.

The hot drinks market in South Africa is the most developed on the regional basis. Recent economic downturn has

prioritised more economically priced brands, although volume growth has continued to be promising. Tighter

consumer spending conditions have also prioritised the purchase of known brands over new launches. Other

factors having a positive effect on the performance of the hot drinks market as a whole include increasingly busy

lifestyles (which work in favour of instant beverages) and the expansion of modern retail into more rural areas.

1.2.1. Key Companies in South Africa

The table below shows key companies in South Africa and their market capital in 2016. Many of these companies

cut across sectors and are not only beverage companies and the market capital reflects this.

KEY PLAYERS IN SOUTH AFRICA'S DRINK SECTOR

COMPANY COUNTRY OF ORIGIN SUB-SECTOR MARKET CAP 2016 (ZARbn)

South African Breweries (SABMiller) South Africa Beverages - beer and soft drinks 75,42

Tiger Brands South Africa Food & beverage 65,98

Pioneer Foods Ltd South Africa Food & beverage 38,33

Unilever South Africa UK Food & beverage 101,10

Distell Group Ltd South Africa Beverages - wine & spirits 34.17

AVI South Africa Food & beverage 26,86

Nestlé South Africa Switzerland Food & beverage 224,08

Clover South Africa Food & beverage - dairy and soft drinks

3,46

Parmalat SA Italy Food & beverage 4,31

Heineken Netherlands Beverages - beer 45,79

Kraft Foods US Food & beverage 52,23

Source: Various, 2016

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Key company developments in the South African beverage industry from 2015 to 2016 include the following:

South Africa-based Griekwaland-Wes Korporatief (GWK) has opened an agro-processing facility in Modder

River in Northern Cape. The facility, comprising a wheat mill, pasta plant and biscuit factory, has a capacity to

produce 25 tonnes of wheat flour, 1 tonne of pasta and 1.3 tonnes of biscuits per hour. The project entailed an

investment of ZAR400mn (USD27.11mn), of which ZAR60mn (USD4.07mn) was spent on expanded silo

capacity to service the new facility (BMIResearch, 2016).

UK-based beverage company Diageo has concluded the restructuring of its South African and Namibian

operations in a deal worth GBP117mn (USD176.3mn). The company outlined its plans for the deal earlier in

2015, which saw it sell-off its stakes in joint ventures with Heineken and Ohlthaver & List Group. 'From this

leadership position we now believe that Diageo has the necessary scale to move to the next stage of growth

for spirits, ready-to-drink beverages and our beer and cider portfolio in a focused, simplified ownership

structure,' said Diageo CEO Ivan Menezes (BMIResearch, 2016).

The Competition Tribunal approved the sale of the 70% shares held by Shanduka Beverages Pty (Ltd) in Coca-

Cola Shanduka Beverages (CCSB) to Atlantic Industries, which is incorporated in the Cayman Islands and

controlled by The Coca-Cola Company through The Coca-Cola Export Company (2015). Atlantic owns Coca-

Cola South Africa and held the remaining 30% in CCSB. The deal allows Atlantic to merge CCSB in to the

proposed CCBA and allows Shanduka restructure its asset portfolio (Who Owns Whom, 2016).

Rhodes Food Group purchased the Pacmar juice company for R165m and announced plans to purchase

Boland Pulp, a juice and puree maker, for R101.58m (Who Owns Whom, 2016).

SOUTH AFRICAN BEVERAGES STRENTHS AND OPPORTUNITIES

STRENGTHS OPPORTUNITIES

South Africa's alcoholic drinks industry is well developed, particularly the beer and wine categories. South Africa is one of the world's top wine exporting countries.

South Africa has the highest beer consumption in Africa.

There is room for large multinationals as well as small-scale bottled water and soft drinks manufacturers and distributors.

Advanced R&D systems which lead to regular industry-wide innovations

The increase of the duty-free quota under the preferential access to EU markets agreement is likely to boost export sales of South African wineries

Many industry sub-sectors, such as energy drinks, tea and coffee, are far from saturated and would benefit from further investment.

The country's growing middle class is likely to drive growth in the alcoholic and soft drinks segments.

Many industry sub-sectors, such as energy drinks, tea and coffee, are far from saturated and would benefit from further investment.

Rising health-consciousness is boosting demand for low calorie soft drinks

There is still plenty of scope for growth in alcohol, particularly in beer and wine.

Source: Business Monitor International, 2016; Who Owns Whom, 2016

9

2. Trade

2.1 Global trade of beverages

The graph below shows the global trade of beverages and its growth in USD. In 2015 global trade declined by

8.66% to USD153.4bn. Trade peaked in 2014 at USD167.9bn and the highest growth was seen in 2011 at 25.9%

with the recovery after the global financial crisis.

Source: TradeMap, 2016

Wine producing giant, France, was the largest global exporter of beverages to the value of USD17.3bn. The United

Kingdom (USD10.53bn) and Italy (USD10.05bn) were the second and third largest export markets. All of the top

10 markets experienced positive growth in exports from 2010 to 2015 with the United States experiencing the

largest growth of 9.9%.

The United States (USD30.5bn) was the largest import market in 2015 making it a net importer of beverages.

Germany was the second largest import market followed by the United Kingdom importing USD11.6bn and

USD10.6bn respectively. China experienced the largest growth in import demand from 2010 to 2015 of 22% p.a.

TOP 10 BEVERAGE EXPORT MARKETS, 2015 TOP 10 BEVERAGE IMPORT MARKETS, 2015

RANK EXPORT MARKET

VALUE 2015 (USDbn)

% GROWTH 2010-2015

RANK IMPORT MARKET VALUE 2015

(ZARbn) % GROWTH 2010- 2015

1 France 17.29 2.41 1 United States 30.49 6.16

2 United Kingdom 10.53 2.86 2 Germany 11.57 0.75

3 Italy 10.05 3.80 3 United Kingdom 10.59 0.93

4 United States 9.70 9.94 4 France 7.20 3.13

5 Germany 8.92 1.46 5 Canada 6.79 4.00

6 Brazil 8.74 3.27 6 Netherlands 5.87 4.23

7 Netherlands 6.78 3.40 7 Japan 5.67 3.14

8 Belgium 5.38 3.91 8 Belgium 5.12 2.71

9 Spain 5.27 4.31 9 China 4.81 22.02

10 Mexico 5.08 6.49 10 Italy 3.82 2.82

TOTAL EXPORTS 153.36 3.93 TOTAL IMPORTS 156.02 4.40


Note global import and export figures differ due to rounding and recording errors of trade data.

2007 2008 2009 2010 2011 2012 2013 2014 2015

USDbn 117.02 133.06 116.47 130.23 163.99 163.60 165.34 167.91 153.36

Growth (%) 19.95 13.70 -12.47 11.81 25.92 -0.24 1.06 1.55 -8.66

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GLOBAL TRADE OF BEVERAGES, 2007-2015

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Global beverage trade in 2015 amounted to USD153bn with, the leading traded products being:

Grape wines (USD22.67bn) 15% global share

Coffee (USD19.73bn) 13% global share

Beer from malt (USD12.8bn) 8% global share

TOP GLOBALLY TRADED BEVERAGE PRODUCTS, 2015

RANK HS

CODE PRODUCT

VALUE 2015 (USDbn)

% GROWTH 2010-2015

% SHARE

1 '220421 Grape wines nes,incl fort&grape must,unfermntd by add alc in ctnr<=2l

22.67 2.43 14.78

2 '090111 Coffee, not roasted, not decaffeinated 19.73 5.56 12.87

3 '220300 Beer made from malt 12.79 3.07 8.34

4 '220830 Whiskies 10.81 4.39 7.05

5 '220290 Non-alcoholic beverages nes,excludg fruit/veg juices of headg No 20.09

10.08 7.76 6.57

6 '090121 Coffee, roasted, not decaffeinated 9.26 11.25 6.04

7 '220210 Waters incl mineral&aeratd,containg sugar o sweeteng matter o flavourd

7.54 4.58 4.92

8 '220820 Spirits obtained by distilling grape wine or grape marc 6.02 4.87 3.92

9 '220410 Grape wines, sparkling 5.75 4.67 3.75

10 '220710 Undenaturd ethyl alcohol of an alcohol strgth by vol of 80% vol/higher

5.44 4.20 3.55

11 '220890 Undenatrd ethyl alc <80% alc cont by vol&spirit,liqueur&spirit bev nes

3.80 7.95 2.48

12 '220429 Grape wines nes,incl fort&grape must,unfermntd by add alc,in ctnr > 2l

3.22 3.67 2.10

13 '220870 Liqueurs and cordials 2.87 0.28 1.87

14 '090240 Black tea (fermented) & partly fermented tea in packages exceedg 3 kg

2.64 -4.05 1.72

15 '220110 Mineral&aerated waters not cntg sugar or sweeteng matter nor flavoured

2.33 2.97 1.52

TOTAL EXPORTS 153.36 3.93 100.00%


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2.2 South African beverage trade

The South African beverage trade has been characterised by a positive trade balance for the past ten years backed

by strong export performance. In 2015 exports surpassed the ZAR20bn level with a trade surplus of ZAR11bn. In

2015 exports in dollar terms declined by 10% even though in nominal rand values the export growth was positive.

This is due to the large fluctuations in the rand in 2014 and 2015. Beverages maintained their 1.8% share of total

South African exports in 2015.

Source: Quantec, 2016

Namibia was largest importer of South African beverages, importing 10% of all South African beverages. South

Africa’s top export markets were predominantly European and African with the second and third largest markets

being the United Kingdom (ZAR1.61bn) and the Netherlands (ZAR1.35bn). Zambia and Mozambique were the

strongest growing export markets, with both markets growing in excess of 15% per annum in dollar terms.

In 2015 South Africa imported beverages from the United Kingdom to the value of ZAR2.4bn, making the European

nation the largest source market. South Africa currently has a trade deficit with the United Kingdom as its beverage

imports exceeded its exports in 2015, this is mainly due to the import of whiskey. European nations were the top

import market and Namibia the largest African market. The largest dollar based growth was seen for Switzerland

(64% p.a.) and Argentina (63% p.a.).

SOUTH AFRICA’S EXPORT MARKETS BEVERAGES, 2015 SOUTH AFRICA’S IMPORT MARKETS FOR BEVERAGES, 2015

RANK DESTINATION

MARKETS VALUE 2015

(ZARbn)

% GROWTH 2010-2015

(USD)

% SHARE

2015 RANK

SOURCE MARKETS

VALUE 2014

(ZARbn)

% GROWTH 2010-2015

(USD)

% SHARE

2015

1 Namibia 2.03 3.44 10.03 1 United Kingdom 2.35 -3.53 26.42

2 United Kingdom 1.61 -7.59 7.97 2 France 0.75 20.05 8.37

3 Netherlands 1.35 0.58 6.66 3 Namibia 0.71 -10.92 8.02

4 Botswana 1.22 2.04 6.02 4 Argentina 0.41 62.81 4.58

5 Mozambique 1.15 15.95 5.67 5 China 0.39 2.83 4.37

6 Germany 1.13 -3.06 5.60 6 Switzerland 0.32 64.15 3.62

7 Zambia 0.86 19.12 4.24 7 United States 0.29 -1.71 3.24

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Exports (ZARbn) 5.96 7.41 10.00 9.97 11.89 12.24 13.37 17.30 19.32 20.24

Imports (ZARbn) 2.69 3.97 4.79 4.90 5.12 6.24 7.30 8.55 8.21 8.91

Trade Balance (ZARbn) 3.26 3.44 5.21 5.07 6.77 6.00 6.07 8.75 11.11 11.33

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SOUTH AFRICAN TRADE OF FOOD & BEVERAGES, 2006-2015

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SOUTH AFRICA’S EXPORT MARKETS BEVERAGES, 2015 SOUTH AFRICA’S IMPORT MARKETS FOR BEVERAGES, 2015

RANK DESTINATION

MARKETS VALUE 2015

(ZARbn)

% GROWTH 2010-2015

(USD)

% SHARE

2015 RANK

SOURCE MARKETS

VALUE 2014

(ZARbn)

% GROWTH 2010-2015

(USD)

% SHARE

2015

8 United States 0.86 -2.16 4.23 8 Austria 0.29 2.92 3.23

9 Zimbabwe 0.68 9.70 3.38 9 Malawi 0.29 -2.24 3.21

10 Angola 0.62 -7.10 3.08 10 Italy 0.24 9.01 2.75

TOTAL EXPORTS 20.24 -0.19 100.00% TOTAL IMPORTS 8.91 0.76 100.00%


Beverages produced from grapes were South Africa top exports. Bottled wine was the largest export worth

ZAR5.9bn, making up 29% of total beverage exports. Bulk wine followed in second place worth ZAR2.56bn making

up 12.6% of total beverage exports. The third largest product was undenatured ethyl alcohol with a strength greater

than 80% which was exported to the value of ZAR1.2bn. The largest dollar-based growth from 2010-2015 was

seen for ethyl alcohol of any strength (28.6%p.a.) and other non-alcoholic beverages excluding fruit and vegetable

juice (26.6%p.a.).

Whiskeys were South Africa’s largest imported beverage to the value of ZAR2.67bn followed by beer made from

malt worth ZAR820m and flavoured or sweetened water worth ZAR768.6m. The largest dollar-based growth in

imports from 2010-2015 was seen for undenatured ethyl alcohol with a strength less than 80% (47.8% p.a.)

followed by vodka (37.8%).

SOUTH AFRICA’S EXPORTS OF BEVERAGES, 2015 SOUTH AFRICA’S IMPORTS OF BEVERAGES, 2015

RANK PRODUCT (HS:6) VALUE

2015 (ZARm)

% GROWTH

2010-2015

(USD)

RANK PRODUCT (HS: 6) VALUE

2015 (ZARm)

% GROWTH 2010-2015

(USD)

1 Grape wines (<2L) 5911.56 -4.27 1 Whiskeys 2666.49 -3.66

2 Grape wines (>2L) 2561.37 1.18 2 Beer made from malt 820.15 -12.14

3 Undenaturd ethyl alcohol of a strength by vol of 80% +

1196.20 -2.54 3 Waters incl mineral; flavoured/sweetened

768.63 13.20

4 Mixtures of juices unfermentd&not spirited

1104.80 1.62 4 Coffee, not roasted, not decaffeinated

758.25 5.72

5 Waters incl. mineral&aeratd,containing sugar or sweeteng matter

1012.41 10.27 5 Apple juice, unfermented, Brix value > 20 at 20°C

556.51 10.92

6 Other Fermented beverages (cider, perry, mead, etc)

982.20 0.30 6 Black tea (fermented) & partly fermented tea in packages > 3 kg

537.62 -0.29

7 Liqueurs and cordials 853.57 0.80 7 Spirits obtained by distilling grape wine or grape marc

421.28 26.94

8 Other Non-alcoholic beverages excludg fruit/veg juices

810.52 26.64 8 Coffee, roasted, not decaffeinated 347.23 20.63

9 Beer made from malt 668.65 7.68 9 Grape juice, incl. grape must, unfermented, Brix value > 30 at 20°C

318.63 36.33

10 Orange juice, unfermentd not spiritd,whether or not sugared or sweet

523.89 10.87 10 Grape wines, sparkling 239.23 11.44

11 Juice of fruit or vegetables, unfermented, whether or not containing added sugar or other

423.61 #DIV/0! 11 Liqueurs and cordials 196.89 3.04

12 Grape wines, sparkling 374.58 -3.99 12 Undenatrd ethyl alc <80% alc cont by vol&spirit,liqueur&spirit bev nes

185.69 47.76

13 Ethyl alcohol and other spirits, denatured, of any strength

331.17 28.58 13 Undenaturd ethyl alcohol of an alcohol strgth by vol of 80% vol/higher

179.27 0.40

14 Whiskies 327.76 -1.17 14 Other Non-alcoholic beverages, excludg fruit/veg juices

159.58 18.16

15 Grapefruit juice, unfermented, Brix value > 20 at 20°C, whether or not

285.68 3.02 15 Vodka 129.48 37.77

TOTAL EXPORTS 20242.92 -0.19 TOTAL IMPORTS 8908.12 0.76


13

2.3 Western Cape Trade of Beverages

The Western Cape has been a strong exporter of beverages for the past ten years and has continually maintained

a trade surplus. Demand for foreign beverages has been increasing from 2012 to 2015. In 2015, exports reached

their highest level worth ZAR13.3bn. Although there was growth in nominal rand terms of 4%, there was a dollar-

based decline of 11% from 2014 to 2015 due to the fluctuations in the rand. 2015 also saw the peak of beverage

imports worth ZAR4.8bn.


The United Kingdom (ZAR1.59bn) was the Western Cape’s largest beverage export market commanding 12% of

all beverage exports. Namibia (ZAR1.4bn) was the province’s second largest market followed by Germany

(ZAR1.12bn). Angola was only non-SACU African country listed in the top 10. The largest dollar based growth for

2014 to 2015 exports were seen for China with 21% growth.

The United Kingdom (ZAR1.98bn) was also the largest source market for Western Cape beverages accounting for

41% of imports. Namibia (ZAR0.7bn) and Argentina (ZAR0.42bn) were the second and third largest import markets.

The largest growth in dollar terms for import markets was for Argentina which grew by 31.7% from 2014 to 2015.

WESTERN CAPE’S EXPORT MARKETS FOR BEVERAGES, 2015 WESTERN CAPE’S IMPORT MARKETS FOR BEVERAGES, 2015

RANK DESTINATION

MARKETS

VALUE 2015

(ZARbn)

% GROWTH 2014-2015

(USD)

% SHARE 2015

RANK SOURCE

MARKETS

VALUE 2015

(ZARm)

% GROWTH 2014-2015

(USD)

% SHARE 2015

1 United Kingdom 1.59 -17.28 12.02 1 United Kingdom 1.98 -22.47 41.12

2 Namibia 1.38 0.26 10.44 2 Namibia 0.70 -46.08 14.56

3 Germany 1.12 -17.87 8.47 3 Argentina 0.42 31.65 8.76

4 Netherlands 0.88 -7.07 6.66 4 China 0.31 -23.84 6.42

5 United States 0.64 1.40 4.85 5 Austria 0.28 18.53 5.81

6 Canada 0.55 -26.76 4.15 6 Ireland 0.17 12.64 3.47

7 Sweden 0.55 -35.88 4.14 7 France 0.13 -1.72 2.75

8 China 0.55 21.33 4.11 8 Switzerland 0.11 28.97 2.29

9 Botswana 0.54 9.93 4.08 9 Brazil 0.09 31.53 1.80

10 Angola 0.48 -42.71 3.64 10 Australia 0.08 -23.64 1.59

TOTAL EXPORTS 13.27 -11.5 100.00% TOTAL EXPORTS 4.81 -12.8 100.00%


2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Exports (ZARbn) 4.31 5.55 7.66 7.50 7.21 7.32 8.10 10.81 12.75 13.27

Imports (ZARbn) 1.85 2.95 3.39 3.68 2.41 2.96 3.56 4.36 4.69 4.81

Trade Balance (ZARbn) 2.46 2.60 4.27 3.81 4.80 4.36 4.54 6.44 8.06 8.46

0

2

4

6

8

10

12

14

Valu

e (

ZA

Rbn)

WESTERN CAPE TRADE OF BEVERAGES, 2006-2015

14

The top 5 export destinations and the top beverages exported to these countries in 2015 are listed below:

United Kingdom

Grape wines (<2L) (ZAR923m)

Grape wines (>2L) (ZAR596m)

Liqueurs and cordials (ZAR21m)

Sparkling wine (ZAR19m)

Other fermented beverages (for example, cider, perry, mead) (ZAR19m)

Namibia


Other fermented beverages (for example, cider, perry, mead) (ZAR270m)

Whiskies (ZAR150m)

Fruit juice- mixed juice (ZAR116m)

Other undenatrd ethyl alc <80% alc cont by vol (ZAR107m)

Germany





Other black tea (fermented) and other partly fermented tea (ZAR2m)

Netherlands



Other orange juice, unfermented ,whether or not sugared or sweet (ZAR50m)

Frozen orange juice, unfermented ,whether or not sugared or sweet (ZAR32m)

Grapefruit juice, unfermented, Brix value > 20 at 20°C (ZAR22m)

United States




Apple juice, unfermented, Brix value > 20 at 20°C (ZAR21m)

Single citrus fruit juice, unfermented, Brix value > 20 at 20°C (ZAR20m)

The Western Cape is South Africa’s largest grape producing region, it is thus unsurprising that grape derived

products are amongst the top exports. Bottled wine (ZAR5.75bn) was the province’s largest export in 2015, this

was followed by bulk wines (ZAR2.49bn) and other fermented beverages (ZAR788m). Other orange juice and

whiskey experienced positive dollar growth from 2014 to 2015 of 15% and 100% respectively.

Below are the Western Cape’s main exported beverages and their export shares:

Bottled wine, (ZAR5.7bn) accounted for 43% of Western Cape beverage exports and 97% of all the

national export was produced in Western Cape.

Bulk wine (ZAR2.5bn) accounted for 19% of Western Cape beverage exports and 96% of all the national

exports were produced in Western Cape.

Other fermented beverages (e.g. cider, perry, mead), (ZAR788m) accounted for 6% of Western Cape

beverage exports and 80% of all the national exports were produced in Western Cape.

Mixed fruit juice, (ZAR330m) accounted for 6% of Western Cape beverage exports and 69% of all the

national exports were produced in Western Cape.

Whiskies were the province’s largest imported beverage to the value of ZAR2bn. The Western Cape also exported

whiskeys (ranked 9th), however this was mainly re-export into the SACU countries. Exports of whiseky to Namibia

made up 50% of total whiskey exports. The second largest import was for beer made from malt worth ZAR734m,

95% of these imports were from Namibia. The largest dollar-based growth for imports was seen for sweetened

15

mineral water and grape juice which grew by 42% and 24% respectively. The import of sweetened water is mainly

from Austria and Switzerland whereas the concentrated grape juice is mainly imported from Argentina and Spain.

It must be noted that the Western Cape does not import any unconcentrated grape juice as the Province is a grape

producing region.

WESTERN CAPE’S EXPORTS OF BEVERAGES, 2015 WESTERN CAPE’S IMPORTS OF BEVERAGES, 2015


2015 (ZARbn)

% GROWTH 2014-2015

(USD)


2015 (ZARbn)

% GROWTH 2014-2015

(USD)

1 Grape wines (<2L) 5.75 -8.06 1 Whiskey 2.044 -16.70

2 Grape wines (>2L) 2.49 -16.91 2 Beer made from malt 0.734 -29.78

3 Other fermented beverages (for example, cider, perry, mead)

0.79 -7.00 3 Apple juice, unfermented, Brix value > 20 at 20°C

0.505 -4.55

4 fruit juice- mixed juice 0.78 -6.64 4 Water & mineral water with added sweetener/sugars

0.475 41.60

5 Liqueurs and cordials (1996-) 0.76 -15.99 5 Grape juice, incl. grape must, unfermented, Brix value > 30 at 20°C

0.320 23.52

6 Sparkling wine 0.33 -11.74 6 Spirits obtained by distilling grape wine or grape

0.139 -3.42

7 Other fruit or vegetable juice, unfermented, whether or not containing added sugar

0.27 -2.98 7 Other undenatrd ethyl alc <80% alc cont by vol&spirit,liqueur&spirit bev

0.080 -57.65

8 Other orange juice, unfermentd not spiritd,whether or not sugard or sweetened

0.22 14.99 8 Coffee, not roasted, not decaffeinated

0.054 -6.87

9 Whiskies 0.22 100.42 9 Rum and tafia 0.051 -29.86

10 Apple juice, unfermented, Brix value <= 20 at 20°C

0.18 -23.25 10 Other non alcoholic beverages excl. fruit & veg juice

0.049 -7.98

11 Spirits obtained by distilling grape wine or grape marc

0.17 -56.23 11 Liqueurs and cordials 0.046 31.50

12 Grape juice, incl. grape must, unfermented, Brix value > 30 at 20°C

0.17 -11.12 12 Other grape wines, incl fort&grape must (<2L)

0.046 -8.75

13 Undenatrd ethyl alc <80% alc cont by vol& other spirit,liqueur&spirit bev

0.14 -9.61 13 Fruit or vegetable juice 0.043 -31.70

14 Apple juice, unfermented, Brix value > 20 at 20°C

0.12 -45.11 14 Vodka 0.035 -17.96

15 Grapefruit juice, unfermented, Brix value > 20 at 20°C

0.10 -15.50 15 Sparkling wine 0.034 -29.20

TOTAL EXPORTS 13.27 -11.51 TOTAL IMPORTS 4.808 -12.80


16

3. Foreign Direct Investment (FDI)

3.1 Global FDI

Between January 2005 and December 2015 a total of 1,101 FDI projects were recorded into the global beverages

sector. These projects represent a total capital investment of ZAR626.43bn which is an average investment of

ZAR569.45m per project. During the period, a total of 154,561 jobs were created. The sector received the most

project investments in 2008 and received the most capital investment the following year.

Source: FDI Intelligence, 2016

The United States was the largest investor into the beverages sector, the world’s largest economy invested into

265 projects, worth ZAR238.2bn in capital expenditure (capex). The United Kingdom (157 projects and ZAR88.6bn

capex) and the Netherlands (76 projects and ZAR44bn capex) were the second and third largest global investors

respectively. Western Europe accounted for half of global investment into this sector. Africa only invested in 15

projects over the decade worth ZAR5.7bn.

SOURCE MARKETS FOR GLOBAL FDI INTO BEVERAGES 2005-DEC 2015

RANK SOURCE COUNTRY PROJECTS % PROJECTS CAPEX (ZARbn)

% CAPEX COMPANIES

1 United States 265 24.07 238.2 38.0 71

2 United Kingdom 157 14.26 88.6 14.1 51

3 Netherlands 76 6.90 43.8 7.0 27

4 France 63 5.72 19.4 3.1 32

5 Japan 51 4.63 18.4 2.9 34

6 Denmark 48 4.36 22.6 3.6 16

7 Belgium 41 3.72 19.5 3.1 14

8 Spain 34 3.09 12.6 2.0 20

9 Switzerland 33 3.00 12.7 2.0 16

10 Ukraine 23 2.09 10.0 1.6 10

TOTAL 1101 100.00% 626.4 100.00% 489


2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Capex 32.0 41.1 46.4 77.8 132.9 45.4 51.1 42.9 61.5 57.1 38.0

Projects 69 98 102 139 132 87 109 104 95 90 76

20

40

60

80

100

120

140

160

.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

Pro

jects

Valu

e (

ZA

Rbn)

GLOBAL FDI INTO THE BEVERAGE SECTOR, 2005-DEC 2015

17

China was the largest recipient of foreign investment into its beverages sector receiving 109 investments projects

from 65 companies worth ZAR71.8bn. BRICS countries, China, Russia and India were amongst the top investment

destinations for beverages. Africa is a net recipient of investment, receiving 10% of investment projects (107) in

the last decade worth ZAR58.2bn.

DESTINATION MARKETS FOR FDI INTO THE BEVERAGES SECTOR, JANUARY 2005 – DEC 2015

RANK DESTINATION COUNTRY PROJECTS % PROJECTS CAPEX (ZARbn) % CAPEX COMPANIES

1 China 109 9.90 71.8 11.5 65

2 United States 80 7.27 22.6 3.6 47

3 United Kingdom 63 5.72 24.2 3.9 38

4 Russia 62 5.63 42.6 6.8 30

5 India 47 4.27 26.5 4.2 27

6 France 35 3.18 12.7 2.0 21

7 Vietnam 35 3.18 14.9 2.4 29

8 Spain 25 2.27 7.5 1.2 16

9 Germany 24 2.18 5.5 .9 23

10 Romania 24 2.18 10.3 1.6 13

TOTAL 1101 100.00% 626.4 100.00% 489


The figure below shows investment into the beverage sector broken down into subsectors, from January 2005 to

December 2015. Soft drinks & ice and breweries & distilleries received the lion’s share of investment. This

investment trend is in line with the global sales figures as the beverage that received the most sales are the ones

receiving the most investment.


Soft drinks & iceBreweries &distilleries

WineriesFood & Beverage

Stores (Beverages)Other (Beverages)

% projects 44.2 43.1 10.8 1.0 0.8

% capex 53.9 40.2 4.6 .7 .6

0.0

10.0

20.0

30.0

40.0

50.0

60.0

% s

hare

INWARD FDI INTO BEVERAGE SUBSECTORS, 2005-DEC 2015

18

The table below lists the companies making the most investments within the beverage sector. Soft drink giant

Coca Cola was the largest investor within the sector, with alcohol companies also being prominent investors.

COMPANIES INVESTING INTO THE BEVERAGES SECTOR , JAN 2005- DEC 2015

RANK INVESTING COMPANY SOURCE

COUNTRY PROJECTS

CAPEX (ZARbn)

1 Coca-Cola United States 74 117.1

2 PepsiCo United States 35 27.3

3 Heineken Netherlands 34 31.5

4 Carlsberg Denmark 24 14.9

5 Diageo United Kingdom 23 23.0

6 SABMiller United Kingdom 22 16.0

7 Coca-Cola Amatil (CCA) United States 18 12.4

8 Anheuser-Busch InBev (ABInBev) Belgium 14 5.5

9 Coca-Cola Hellenic Bottling (CCHBC) United States 12 6.1

10 Nemiroff Ukrainian Vodka Ukraine 12 2.8

11 Coca-Cola FEMSA United States 11 9.9

12 Ajegroup Peru 10 5.3

13 Asia Pacific Breweries China 10 3.2

14 Chivas Brothers France 10 3.7

15 Backus and Johnston Peru 9 6.8

TOTAL 1101 626.4


19

3.2 South Africa’s FDI in the beverages sector

3.2.1 Inward investment

Between January 2005 and December 2015 a total of 8 FDI projects were recorded into the South African beverage

sector. These projects represent a total capital investment of ZAR6.38bn which is an average investment of

ZAR797.93m per project. During the period, a total of 1,012 jobs were created.

The largest investment into the South African beverages sector was by beer giant Heineken worth ZAR4.6bn in

2008, this was the largest of the two investments from the Netherlands. The United States was the largest project

investor with Gauteng receiving the most beverage projects. The Western Cape received one beverage investment

into the winery subsector worth ZAR223m in 2012, this investment created 22 jobs.

FDI INTO SOUTH AFRICA'S BEVERAGE SECTOR, JANUARY 2005- DECEMBER 2015

DATE INVESTING COMPANY

SOURCE COUNTRY

DESTINATION STATE

DESTINATION CITY

SUB-SECTOR INDUSTRY ACTIVITY

CAPEX (ZARm)

JOBS

Jan 2015

Monster Beverage Co (Monster Energy)

United States Not Specified Not Specified Soft drinks & ice Manufacturing 399.6 222

Feb 2012

Vina Concha y Toro Chile Western Cape Cape Town Wineries Sales, Marketing & Support

222.6 22

Jul 2011 Coca-Cola South Africa

United States Gauteng Heidelberg Soft drinks & ice Manufacturing 399.6 222

Mar 2008

Coca-Cola United States Gauteng Midrand Soft drinks & ice Design, Development & Testing

70.3 17

Mar 2008

Heineken Netherlands Gauteng Not Specified Breweries & distilleries

Manufacturing 4628.2 225

Mar 2008

Heineken Netherlands Not Specified Not Specified Breweries & distilleries


Feb 2008

Lonrho Springs UK Gauteng Johannesburg Soft drinks & ice Manufacturing 62.1 21

Sep 2006

Coca-Cola United States Gauteng Johannesburg Soft drinks & ice Headquarters 202.7 61


Some of the motives cited by the companies for the reasons for investing in South Africa are seen below:

Heineken: Tom de Man, Regional President for Africa and the Middle East, cited as a motive: 'With Africa now

Heineken's fastest growing region, with the Heineken brand growing 70% in South Africa and Amstel very clearly

still a favourite with South African consumers, there is no better time to invest in growth. Our three businesses

already have a strong, successful partnership and I am excited about the new opportunities that the combination

of our brands and local brewing will create.'

Lonrho Springs: The Gauteng / Johannesburg market is responsible for over 50% of South Africa's bottled water

consumption..."This water is one of the finest available anywhere, with a perfect balance of ph and minerals. It is

sourced from a natural spring in the UNESCO world heritage site the 'Cradle of Humankind' which is a protected

and beautiful environment.”

Coca-Cola: "The commercial aviation infrastructure, the telecoms infrastructure, the whole commercial

environment is improving across Africa, and now is the right time for us to move our base to Africa, and

Johannesburg is the location of choice," Alex Cummings, president of Coca-Cola South Africa, said on the

Moneyweb Power Hour. "South Africa ... has the most developed infrastructure,"

20

3.2.2 Outward investment

Between January 2005 and December 2015 a total of 12 FDI projects were recorded from South Africa into the

global beverage sector. These projects represent a total capital investment of ZAR4.74bn which is an average

investment of ZAR394.86m per project. During the period, a total of 1,175 jobs were created.

Three quarters of the projects were from the Western Cape. The investment from the Distell group (ZAR1.7bn) into

Ghana in 2014 was the largest outward beverage investment to date.

OUTWARD FDI FROM SOUTH AFRICA INTO THE BEVERAGES SECTOR, JANUARY 2003- DEC 2015

DATE INVESTING COMPANY

SOURCE STATE

SOURCE CITY

DESTINATION COUNTRY

SUB-SECTOR INDUSTRY ACTIVITY

CAPEX JOBS

Jun 2015

Origin Wine Western Cape

Stellenbosch United States Wineries Sales, Marketing & Support

222.6 22

Oct 2014

Wines of South Africa

Western Cape

Stellenbosch Hong Kong Wineries Sales, Marketing & Support

222.6 22

Jun 2014

Distell Group Western Cape

Stellenbosch Angola Breweries & distilleries


Jun 2014


Stellenbosch Nigeria Breweries & distilleries


Apr 2014


Stellenbosch Ghana Breweries & distilleries


Dec 2013

Origin Wine Western Cape

Stellenbosch Sweden Wineries Sales, Marketing & Support

222.6 13

Sep 2013

East Africa Bottling Share

Eastern Cape Port Elizabeth

Ethiopia Soft drinks & ice Manufacturing 152.3 52

Sep 2013

East Africa Bottling Share

Eastern Cape Port Elizabeth

Ethiopia Soft drinks & ice Manufacturing 234.3 81

Feb 2011

First National Choice

Not Specified Not Specified

Mozambique Soft drinks & ice Manufacturing 70.3 24

Jul 2008

Bright World Western Cape

Cape Town Hong Kong Wineries Logistics, Distribution & Transportation

411.3 92

Mar 2006


Stellenbosch Namibia Wineries Logistics, Distribution & Transportation

17.6 4

Feb 2005

Lourensford Wines

Western Cape

Somerset West

India Wineries Manufacturing 460.5 199


Distell’s investments into Africa is part of a wider growth strategy which will see an additional facility established in

Angola, Nigeria and Ghana. The plant aims to produce a range of beverages for distribution in within the countries

themselves and neighbouring countries.

Distell has identified Ghana as a growth market and as a potential springboard for further penetration of its brands

in neighbouring Togo, Benin, Burkina Faso and Cote d'Ivoire. Distell Ghana, sees the South-African-based

producer of wines, spirits and ready-to-drinks (RTDs) partnering with Finatrade Group to establish a bottling plant

in Accra. “By pooling our respective skills, Finatrade and Distell is an example of how other African partners should

collaborate for the good of the continent”. (Distell, 2014)

For more information on this publication and other Wesgro publications please contact [email protected]. For more

publications like this visit the Wesgro publications portal on our website at http://wesgro.co.za/publications

mailto:[email protected]

http://wesgro.co.za/publications

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