Thirsty ThoughtsMalt Beer

Annual Market Quantification April 2011

2010 Channelling

2

Food-services Direct14.0%

She-beens, taverns53.8%

Off con-sumption

31.5%

Mines0.7%

Annual Growth Rates

32000 2005 2010

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Exceptional performance for malt

beer

4

• Malt beer is a well-entrenched beverage in the South African market, and currently holds the largest volume share within the alcoholic sector. This share increased in 2010 despite good performance from competing alcoholic beverages.

• Malt beer volumes increased by substantial 9.0% during the base year, this being a exceptional performance for the category. This is on the back of a decline the previous year, and the recession put the category under pressure.

• Although the majority of malt beer is packaged into glass bottles, after the FIFA Soccer World Cup in 2010 plastic bottles have seen increasing popularity at social and sports functions. Glass was deemed dangerous, especially at sports events, and so producers began selling the plastic alternative. This new launch initially received a mixed reception, but it is expected to continue to grow slowly in future.

• Malt beer maintains a larger contribution to GDP than most other beverage categories. For 2010, malt beer comprised 1.5% of GDP for the country.

• Pricing for the category has traditionally seen healthy increases year on year, having only slowed down somewhat during the 2007/2008 season. Since 2009, good increases have been recorded once again, with 2010 (14.3%) noting the second highest increase across the historical analysis for malt beer.

Thirsty ThoughtsMalt Beer

For more information, contact:

Jan Wegelin Research ManagerTel: (011) 615 7000 Mobile: 082 938 0744

www.bmi.co.za