Abstract
The South African liquor industry has experienced a period of consolidation
arising in part from a polarization in which the larger players become more
powerful and the smaller players struggle to survive. The Distell merger
brought economies of scale which make it difficult for even the other large
companies to compete.
For the minor players in the industry, survival is a real issue. Higher
distribution costs, too few viable brands have all undermined profitability.
Local wine farms - many of which have enjoyed good times since the mid 1990s -
are now experiencing margin pressure as the Rand strengthens and international
markets - many in recession - seek cheaper product.
Resistance by trade customers and sluggish domestic demand has put further
pressure on these prices. The result is that many prestigious wine brands
which previously sold on allocation are now struggling to achieve an
acceptable level of sales. Wineries which were dependent on exports for the
bulk of their revenue are suffering severe negative cash flow.
Aruvian' s R' search presents an analysis of the fastest growing liquor industry
in the world - Analyzing the Liquor Industry in South Africa. The report
firstly gives an understanding of the South African liquor industry. The
research report further looks at competition in the industry, market share
scenario in the industry, the high rate of competition in the industry,
opportunities for SMMEs and the ethical issues faced by the industry and how
it is safeguarding consumer interest. The report also includes a comprehensive
analysis of the industry structure and the industry segmentation.
The issue of Black Economic Empowerment in the South African liquor industry
is also explored in this report. An analysis of the leading players in the
industry, along with a comprehensive industry forecast completes Aruvian' s
offering Analyzing the Liquor Industry in South Africa.
Table of Contents
A. Executive Summary
B. A Profile of the Global Liquor Industry
C. Introduction to the South African Liquor Industry
- C.1 Overview
- C.2 Market Profile
- C.3 Industry Sales
- C.4 Trade Performance on the Global Arena
- C.5 Potential of Exports
- C.6 The Effect of Excise
- C.7 Contribution of the Liquor Industry to Economy
- C.8 Employment Opportunities in the Industry
- C.9 Supply Chain of the Industry: A Diagrammatic Representation
- C.10 South Africa' s Top 20 Liquor Brands
D. Industry Structure
E. Industry Segmentation
F. Competition in the Industry
G. South African Liquor & Black Economic Empowerment
H. Potential & Opportunities for Small, Medium and Micro Enterprises in the Industry
I. Regulatory Framework Governing the South African Liquor Industry
J. Ethical Issues Facing the Industry & Safeguarding Consumer Interest
K. Barriers to Growth & Growth Potential
L. Leading Contributors in the Industry
- L.1 Brandhouse
- L.2 DGB
- L.3 Distell
- L.4 E.Snell
- L.5 KWV
- L.6 NCP Alcohols
- L.7 NMK Schulz
- L.8 SABMiller
M. Future Directions for the Industry
N. Appendix
O. Glossary of Terms