Quaffing plonk
South African Breweries (SAB) may have a market share of 98 % in the South African beer market, but is far from immune to the threat posed by fuel price hikes (+ 50 % over the past year) and cheap wine. For the half-year to 30 September 2000, beer volumes declined 6 % due to a surplus of cheap wine which is selling for as little as 30 cents per litre. Beer prices in the townships are relatively cheap too – only 30 cents per pint. However, in a poor economy, price per volume plays a decisive role. Hence, SAB reported a 2.8 % decline in half-year profits to US$310 million from US$319 million. Despite strong performances in Eastern Europe and China, the brewer stills earns more than 50 % of its profits in rand..
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