South Africa, Johannesburg: Brewers Diageo, Heineken and Namibia Breweries said on March 5 that South Africa's competition commission had approved a joint sales, marketing and distribution venture in the country. The joint venture is set to spearhead the assault by Namibia Breweries on SABMiller's hold on the South African beer market, which it dominates with a massive 98 % share, according to Reuters. Diageo, Heineken and Namibia Breweries Limited (NBL) said they were in negotiations to finalise the terms of the joint venture, which South Africa's Competition Commission had approved unconditionally on March 2.
Diageo and Heineken took an effective 28.9 percent stake in Namibia Breweries in mid-2003 after Heineken decided not to renew SABMiller's licence to brew its trademark green-labelled beer in South Africa. NBL plans to brew Heineken in Namibia. The move laid the ground for a battle for market share in South Africa's premium beer sector -- which some analysts say is growing by around 16 percent a year.
"This decision sanctions the commencement of an exciting new phase that will step up the remarkable growth of NBL's popular premium brands in South Africa," Namibia Breweries Chairman Sven Thieme said in Friday's statement. Heineken and Namibia Breweries are focused on beer, while Diageo is the world's biggest distilled drinks firm and owns Guiness stout. NBL's Windhoek Lager is one of the leading premium brands in South Africa.
"Namibia Breweries is already established as a major player in the growing premium beer segment in southern Africa, through a well-established portfolio of brands and excellent customer relationships. The company intends accelerating its expansion on the African continent as part of its growth strategy," the statement said.
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