SABMiller Sees More Affordable Beer and Middle Class Aspirations as the Biggest Growth Opportunities in Africa
10 Mar 2015 --- At an investor seminar in London, Mark Bowman, Managing Director SABMiller Africa, will underline his confidence in the strong long-term growth potential for beer on the continent, and set out why he believes SABMiller is best-placed to capture this opportunity.
Mark Bowman said: “Africans drink nine litres of beer per head per year, compared with a global average of 45. So as Africa develops and levels of disposable income increase we expect the rate of beer consumption to grow significantly. Additionally we anticipate strong GDP growth in Africa which supports our optimism.
“Consumer access to affordable, formal alcohol and developing brands that tap into local pride and unlock the aspirations of the growing middle class who are seeking more premium brands will be the key drivers of top-line growth for our business across Africa.
“The informal market continues to dwarf formal alcohol in Africa. While homemade or illicit alcohol poses a potential health risk to consumers, it is considerably cheaper so our challenge is to ensure that we provide price-sensitive consumers with affordable, high quality alternatives.”
African alcohol consumption, including formal and informal alcohol, is in line with the global average at 6.2 LPA (litres of pure alcohol) per person per year. The potential for growth by bringing consumers into the formal alcohol market is substantial.
By developing new affordable brands, such as Chibuku Super and Impala (the world’s first commercial cassava beer in Mozambique), and maintaining moderate pricing regimes on our beer brands, SABMiller expects to win share from the informal alcohol market and achieve significant long-term volume and NPR growth in Africa.
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