News

SOUTH AFRICA: SAB taken on by UK's Bulmers on home turf

Most popular

What will be Ian Curle's Edrington legacy?

Should Pernod dump wine, bunk up with Brown-Forman

Interview, Pernod Ricard CEO Alex Ricard - Part I

'Healthy alcohol' - the trend to watch in 2019?

MORE

The world's largest cider producer HP Bulmer is set to lock horns with the giants of South Africa, including the mighty South African Breweries (SAB) as it actively pursues a larger slice of the South African cider market.South African Breweries, which controls 98% of the local beer market, faces the UK' s HP Bulmer, which has been buoyed by its success in the UK, a success it believes it can now repeat in South Africa. While the local beer market is showing static growth, the cider market is growing in excess of 20% annually. Currently the cider market in SA is the second largest in the world (after the UK), making it an irresistible opportunity for the likes of Bulmers as it looks to increase its turnover.The SA cider market is dominated by SFW (Stellenbosch Farmers Winery) and Distillers Corporation (presently engaged in merger talks) with around 70% of the market, followed by SAB with 18% and HP Bulmer with just over 2%. A joint venture has been set up with Bavaria Brau, a family-owned brewery near Pretoria, in which HP Bulmer owns 70% although it takes 90% of the distributed profits.However, there have been problems in the first months of operation resulting in a R4m operating loss on turnover. Reasons for the depressed profits are in part due to distribution problems, "slow penetration of the mass market" and not least to the ravages of nature - unseasonal rains and a tornado struck the brewing plant in December.Despite these setbacks HP Bulmer remains optimistic it can succeed and break even well within the next five years.


Related Content

"Where is the next opportunity? It's in Asia. And, in Asia, the opportunity is China" - South Africa...

Anheuser-Busch InBev targets South Africa management with voluntary redundancy plan

Anheuser-Busch InBev targets South Africa management with voluntary redundancy plan...

No involuntary job losses ever as Anheuser-Busch InBev gets South African Government backing

No involuntary job losses ever as Anheuser-Busch InBev gets South African Government backing...

"People always complain when they see foreign investment" - How overseas money is changing South Afr...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?