COMMENT: Heineken takes brand control in South Africa
SABMiller intends shipping in its Pilsner Urquell and Miller Genuine Draft, while Heineken will do the same with its Heineken Lager.
Heineken said today that it had looked at the situation after the SABMiller merger last year and decided that there were grounds to end the partnership in South Africa where it's Heineken Lager sells 100 000 hectolitres of premium lager.
It believed it had to take control of the destiny of the brand and could increase both its market share as well as volumes in this 24.5m-hectolitre market, in which SAB has a 98% share.
The Dutch brewing giant said it would however retain the licensing agreement with SAB regarding its 700 000 hectolitre Amstel Lager brand, because the lower margins, together with higher volumes did not make it attractive to import the beer into South Africa. SAB has had the agreement for the past 37 years.
Spokesman Albert Holtzappel said from Holland that it was premature to say who would do the distribution for Heineken in South Africa, as several options were being investigated.
This included SAB's only nominal opposition in South Africa, Namibia Breweries, which also distributes Beck's, which has a share in the Windhoek based brewery.
Holtzappel said it would take a few weeks for the company to get a marketing team into place and foresaw a slight dip in sales in the short term, but felt they could grow it in the medium to long term.
SAB spokesman Adrian Botha said Pilsner Urquell and Miller beers would be imported into South Africa within the next few months, but the idea was to start brewing them locally as soon as possible.
Heineken's CEO-in-waiting has no plan to radically alter the brewer's strategy, he said in an interview today....
Heineken has restructured its top management, in a move that includes the retirement of current CEO and chairman Thony Ruys from October this year....
China Resources Snow Breweries Limited (CR Snow) has entered into an agreement with the Fuyang City government to acquire the assets of the Fuyang City Snowland Brewery Company in Anhui province for U...
Following its recent re-launch in the UK, SABMiller has introduced its Italian lager brand Peroni Nastro Azzurro to the Romanian market....
Heineken said yesterday that its Austrian subsidiary Brau Union AG has signed an agreement for the divestment of its Real Estate Division. This division comprises all non-business related real estate ...
Heineken has acquired a 40% stake in a Chinese brewery....
Appletiser has announced a sales volumes increase of about 14% for South Africa in 2004, crediting this mainly to the new look packaging introduced last year....
Heineken Espana is looking to invest heavily in a new plant in southern Spain....
- The post-Brexit winners and losers - Analysis
- What Brexit means for drinks industry? - Analysis
- What does Brexit mean for AB InBev's SAB deal?
- Interview - Seedlip founder, Ben Branson
- Customisable drinks - The next consumer trend
- Carlsberg to close UK distribution arm
- Pernod Ricard exec shuffle - Denis O'Flynn leaves
- Major spirits M&A remains out of sight - analyst
- C&C Group will be a Brexit victim - analyst
- Pernod Ricard gives Beefeater packaging revamp
- Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Spirits and Wine: Corporate Overview
- Global RTD insights - market forecasts, product innovation and consumer trends