Competition is straining relations between Ethiopia’s s state-owned Meta Abo brewery and the privately-owned BGI which is controlled by the Frenchman Pierre Castel. Meta Abo, which is the largest of Ethiopia’s four government-controlled breweries, has launched a public complaint against the market leader, BGI (with 2 breweries in Ethiopia), claiming it has been the victim of unfair trading practices by BGI. According to reports in the local media, there is more at stake for BGI than its reputation because Meta Abo is also asking for compensation.

St George fighting the dragon

What used to be a shared monopoly is quickly, albeit stumblingly, turning into a highly competitive beer market. As the gap between Castel’s St George brewery and his state-owned rivals begins to widen, Ethiopia’s government-controlled breweries face the danger of falling behind.

No more Amstel for SAB. After 40 years, Heineken decided to terminate its contract with South African Breweries (SAB) on 12 March 2007 with immediate effect.

Having enjoyed a beer market monopoly for years, France’s Pierre Castel now faces competition from Heineken which plans to open a brewery in 2008.

The spiral of violence

Chelsy Davy, the girlfriend of Britain’s Prince Harry, who was robbed at gunpoint in a Cape Town wine bar in September, may have been the most prominent victim of the latest series of attacks on bars and restaurants.

The have-lots, the haves and the have-nots

The “have-lots” and the “haves”, as Beer SA, the South African beer division of SABMiller, categorises them, have done very well out of the recent strong performance of the economy and have been the force behind the consumer boom, while the

Ties that bind

Portugal’s number one brewer Unicer is to invest EUR 150 million in the construction of a new brewery in the outskirts of the capital Luanda which shall come on-stream in 2008. The former Portuguese colony of Angola with its 13 million inhabitants is Unicer’s largest export market with 60 percent of its beer exports in 2005 being sold there. The brewery will have a production capacity of 700 000 hl in its initial phase, and 1.4 million hl at full capacity...

Have your cake and eat it

The word may have a nasty ring to it. But nothing beats a sound monopoly. In South Africa, where SABMiller enjoys a near monopoly, strong growth in the market for premium beers plus an overall volume growth of 3 percent helped to underpin the 19 percent increase in interim EBITA reported by SABMiller’s local beverages division, SAB.

Heineken may go local

It could just be a well-planted rumour to annoy the local bigwig SABMiller that Heineken is considering whether to build a brewery in South Africa, prior to the expiry of a licence for its second brand, Amstel, now held by SABMiller. However, Heineken has every reason to ponder such an option and its officials said recently that a decision was likely before the end of 2006. Heineken that is in bed with Diageo and Namibia Breweries has had its Amstel brand brewed by Namibia Breweries and exported to South Africa since late 2004. Heineken and Diageo have a combined 28.9 percent stake in Namibia Breweries, having taken over InBev’s stake in Namibia’s dominant brewer. ..

Defying the doomsayers

For the financial year ending 31 March 2005, SABMiller’s local division, Beer South Africa, reported a 13 percent increase in turnover and a 20 percent hike in earnings before interest, tax and amortisation (EBITA). A 4 percent increase in overall volumes and a strong 50 percent hike in premium brand volumes helped to generate an impressive increase in EBITA margins to 28.1 percent from 26.6 percent. Graham Mackay, SABMiller’s long-serving CEO, was quoted as saying that the strong local results had benefited from the country’s robust economic performance. According to Mackay, economic and monetary policy had resulted in key economic indicators such as inflation, consumer confidence and growth in gross domestic product (GDP) all moving in the right direction. ...