The Liquor Industry in South Africa 2017

LONDON, Oct. 23, 2017 /PRNewswire/ -- The Liquor Industry:
The South African liquor industry, which includes the manufacture, wholesale and retail of beer, wine, spirits and flavoured alcoholic beverages, was valued at an estimated R106.1bn in 2016. Beer sales dominated the sector, accounting for 56.1% of the value of liquor sales and nearly 80% of the volume. South Africa's alcohol consumption rate has climbed in recent years making the country the third-largest consumer of alcohol in Africa and according to the World Health Organisation (WHO), the 19th-biggest in the world.

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Merger Between SABMiller and AB InBev:
The much anticipated merger between South African Breweries (SABMiller) and Anheuser-Busch InBev (AB InBev) was completed in October 2016. InBev AB paid R1.9-trillion for SABMiller, forming a new holding company, Newco. Conditions imposed on AB InBev by Competition Authorities include an investment of R1bn into the provision of support to 800 small, emerging farmers, the retention of the current 6,000 employees for a period of five years and the disposal its 26.4% stake in Distell.

Changes in the Retail Sector:
Over the last decade the country's largest supermarket chains have increased their dominance in the liquor sector. The expansion of Spar's TOPS, Shoprite/Checkers' Liquor Shop, P'nP Liquor, Woolworths Wine and Spirit Stores and Massmart's Game Liquor has meant that an estimated 70% of independent liquor retailers have already shut down and approximately 60,000 jobs have been lost.

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.

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