The Manufacture and Wholesale of Non-Alcoholic Beverages in South Africa 2017

LONDON, Oct. 23, 2017 /PRNewswire/ -- The Manufacture and Wholesale of Non-Alcoholic Beverages:
The June 2017 statistical release of Statistics South Africa showed manufacturing sales of non-alcoholic beverages were worth R10.5bn, accounting for 25.3% of total food and beverage manufacturing sales. More than 70% of non-alcoholic beverages sold in South Africa are carbonated soft drinks and the Coca-Cola Company accounts for almost half of these sales. The company is also the leading supplier of both prepared and natural mineral water with its Bonaqua and Valpré brands.

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The Importance of Spaza Shops:
A number of smaller companies that manufacture carbonated soft drinks have managed to take significant market share from Coca-Cola because of their lower prices. They have looked to retailers such as spaza shops as an informal distribution channel. Whereas wholesalers in the past were unwilling to make deliveries to spaza shops and did not give discounted prices, smaller non-alcoholic beverage manufacturers are now targeting spaza shops since they are concentrated in low-income communities where soft drinks such as carbonates and concentrates are popular.

The Impact of the Tax on Sugar-Sweetened Drinks:
Non-alcoholic beverages include carbonated soft drinks, bottled water, energy drinks, sports drinks, cordials and concentrates, health and functional beverages and dairy and fruit blends. As the majority of these beverages contain added sugar, the impact of the pending introduction of a tax on sugar-sweetened drinks is the cause of intense debate among industry participants and a source of uncertainty among smaller players in the sector.

Report Coverage:
The report on the Manufacture and Wholesale of Non-Alcoholic Beverages describes current conditions and trends, the impact of new regulations and other factors influencing the success of the sector. Smaller manufacturers such as SoftBev, Little Green Beverages, Kingsley Beverages and Twizza are four of the 28 wholesalers and/or manufacturers profiled in this detailed report.

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