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A booming population and above-average economic performance, backed by buoyant mining and energy industries, are behind the growth, which is running hotter than in Latin America and Asia.

"Africa remains an attractive place for consumer goods companies. From a macro perspective it has a growing population and is enjoying GDP (gross domestic product) growth across most markets," Africa boss for global brewer SABMiller Mark Bowman told Reuters.

His African beer volumes, minus the relatively mature South African market, rose in excess of 10% for the last two years. Four big brewers - SABMiller, Heineken, privately owned Castel and Diageo - control more than 90% of the R92-billion African market, and they are ploughing in millions.

Beer is the drink of choice in the up-market suburban areas of Johannesburg and also in the townships that circle the city, whether it is SABMiller's top brews Castle and Carling Black Label or Heineken's eponymous brew and Amstel, but price is a challenge for less well off drinkers.

The unlicensed shebeens in Alexandra township provide a beer for those returning from work, such as 31-year-old Amstel drinker Siphiwe Dlamini, a part-time film industry worker.

"It's not busy today because it's Monday. People like to take it easy on Monday, and, besides, the beer is not cheap. A lot of people between now and the weekend drink home brew beer. It's much cheaper," he said.

Buyers not only get consistent quality but a price tag that is a third less than mainstream beers.

SABMiller is building new breweries in Nigeria, Uganda and Zambia this year and expanding those in a string of other nations. SABMiller's Bowman is hoping to woo home brew drinkers with its own beers made from local crops sorghum and cassava.

The brewer plans to spend R3343-million to R4179-million a year for three to five years to build two or three breweries a year and revamp others in Africa, while he also increases production of its own "home brewed" sorghum-based cloudy chibuku beer.

Analysts estimate African beer volumes rose around 7% in 2011, but stripping out the mature South African market, which accounts for over a quarter of the continent's beer, then growth was well over 10%.

"Africa is likely to be one of the key long-term growth drivers for the global beer category," said industry analyst Trevor Stirling at brokers Bernstein Research.

With annual African per capita beer consumption only 8 litres, compared with a global average of 35 litres - stepping up to around 70 litres in western Europe and North America - there is a huge pool of potential to be tapped. - Reuters

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Wed May 22 10:33:49 SAST 2013 ::

Jun 18, 2012

Curry

We have an already high drug, crime, alcoholism, drinking & driving, teenager pregragnacy, domestic abuse, divorce, etc....and to a large extend they are all fuelled by alcohol....no thanks we do not want anymore beer. African consumer that staff as if they had to work 3 minutes in order for them to afford it
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Jun 18, 2012

nsukuangel

This is just not good at all...
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Jun 18, 2012

sgubhusenkwishi

That is just pure unfairness and greediness by the South African capitalists, we all have a stake to this product (beer) because is produced from our land by our hard working farm workers at lower costs and underrated salaries. Why should the beer be that expensive for workers who spend three hours to afford one, I am not in favour of nationalisation of land and other asserts , but if capitalists are getting away with it for their selfish endgain to deprive our people even of little pleasure and priviledge from what they sweating for on their land, I fully back nationalisation of land without compensation , because it only benefits the greedy hypocrits.
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Jun 18, 2012

sgubhusenkwishi

Europeans have to work 12 minutes, compared to african 3 hours to afford a beer, yet africans are producers, are africans still slaves of Europe or what ? Even the chefs world wide are entitled to free meals simple because they prepare it, why difference with africans.
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