Media Feedback Report 2016 Category Quantification Malt Beer in South Africa

Product Definitions

Product

Definition

Malt Beer

An alcoholic beverage typically brewed from barley comprising a mixture of malt syrup, water, sugar and yeast which is flavoured with hops. Malt beer typically contains between 4% and 6% alcohol.

2 / 2016 Malt Beer Feedback Report

Malt Beer Trends The South African malt beer market is a mature one with traditionally little change in volume growth per annum. While category recorded a substantial growth in 2011, the volume growth was minimal in 2012. This trend is expected to continue in the short to medium term as production costs, raw material costs, fuel costs and the electricity price increase all collectively hamper further potential growth. The category volume grew and value increased from 2014 to 2015. The relatively substantial value increase was primarily attributed to the increase in malt beer pricing rather than volume growth. The on-consumption channel continued to dominate the volume distribution. However, some of the sectors are said to have lost some of their volume share to off-consumption channels. Retailers are said to have opened more liquor stores that are also known for their promotional activities, thereby attracting more sales. This trend is expected to continue in the short term as the new stores establish themselves in the market. The 600ml-750ml glass bottles continued to dominate packaging demand for the category. This pack size group experienced a limited growth as the category remains under pressure. The 440ml can showed significant growth (albeit off a small base) as some brands added the 440ml can to their offering, thus appealing to consumers pursuing value for money options. The market is expected to remain under pressure as the economy struggles to recover and disposable income remains low in the short to medium term.. 3 / 2016 Malt Beer Feedback Report

Channel Distribution 2015

33.4%

66.6%

Off-Consumption

On-Consumption

The volume sold through the on-consumption channel continued to dominate the industry. However, the off-consumption channels have been growing in terms of volume and the number of stores opened. Overall, the on-consumption sector is losing share in some areas as retail chains open more liquor stores. 4 / 2016 Malt Beer Feedback Report

Local Regional Distribution 2015

8.6% 14.3% 5.9% 8.9%

13.1%

32.1%

17.1%

E Cape

FS/N Cape

Gauteng

KwaZulu-Natal

Limpopo/Mp

North West Prov.

W Cape

The three major metropolitan regions continued to dominate the industry volume, accounting for majority of total volume sold in 2015. it is believed that the volume of smaller pack sizes distributed in these regions was notable compared to the non-metropolitan regions.

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BMi Solutions

BMi Tracking Report Schedule 2015 Packaging

Annual Beverage Publications

All reports

Full Report (All reports below)

• • • •

Alcoholic Beverages • Flavoured Alcoholic Beverages • Malt Beer • Sorghum Beer • Spirits • Wine

Packaging overview Paper & Board QPM Quarterly Import

Non Alcoholic Beverages • Bottled Water • Carbonated Soft Drinks • Cordials and Squash • Energy Drinks • Fruit Juice • Iced Tea • Mageu • Sports Drinks

Annual Food Publications

Confectionery & Snacks

On Request

• • • • • • •

• •

• • • • • • •

Canned Protein Dairy Desserts F&C Beverages Pasta Rice Wheat and Grain

• •

Ice Cream Packaging of Snack Foods South African Confectionery Market The Impulse Market in South Africa

• • 7 / 2016 Malt Beer Feedback Report

Biscuits and Rusks Breakfast Foods Baked Products Baking Aids Eggs Fats and Oils Frozen and ParBaked Products Premixes Pre-prepared Meals

Dairy Beverages • Dairy Juice Blends • Drinking Yoghurt • Flavoured Milk • Maas • Milk

• • • • • •

Processed Meat Products Protein Sauces Soup and Condiments Sweet and Savoury Spreads Value Added Meals

Commissioned

Consumer Insights

Solutions

Promotional Effectiveness

Instore

Category Ranging

Instore Compliance

Competitive Advertising Tracking

Food

Beverages

Packaging

Shelf & Promotional Price Surveys

Omni Channel Advertising & Campaign Testing

Business Insights

Category Quantification Mystery Shopping

Shopper Insights

Shopper Insights

Advanced Analytics Predictive Analytics

Price Sensitivity Competitive Pricing Simulation

Advertising

8 / 2016 Malt Beer Feedback Report

60%

Statistical Optimisation Model

Promotional Effectiveness

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