South Africa: Joint venture between Diageo, Heineken and Namibian Breweries growing steadily
The joint venture between Diageo, Heineken and Namibian Breweries - Brandhouse, had grown profits of 34 percent in the past year, the managing director Simon Litherland stated, according to the Business Report of 20 October. Total sales volumes increased by 7 percent, turnover by 11 percent to R3 billion and market share of the premium and standard segment had increased by half a percentage point, he said.
Brandhouse, which has an unrivalled portfolio of brands in the premium market, employs 450 people and a further 150 people in the Diageo local production, which accounts for 45 percent of spirit volumes.All the beer except Guinness is brewed in Namibia, and Brandhouse operates from three main offices in Cape Town, Johannesburg and KwaZulu-Natal.
Brandhouse's brands include Smirnoff, Bell's, J&B, Johnny Walker, Heineken, Windhoek Lager, Guinness, Archers Aqua, Baileys and Captain Morgan.
Litherland affirmed that the company's research had shown that its share of the brandy market had increased from 9.4 percent to 9.9 percent, and Brandhouse was delighted with this result
"One year is not enough to build a house ... it's the start of a journey," he said.
The total flavoured alcoholic beverage market is valued at R2.3 billion, an 18 percent growth on last year. The launch of its "Smirnoff Storm on September" had built on the strengths of "Smirnoff Ready To Drink" portfolio.
The brewing company will today launch a Heineken 650ml bottle, priced at about a 25 percent premium to Amstel, in a market where "large packs" represent more than 80 percent of the beer market by volume. Litherland said Brandhouse expected the premium segment of the market to continue to grow at over 10 percent a year and it would focus its efforts of growing its size and share in a competitive environment of beer market.
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