brandhouse celebrates Amstel's reunion with South Africa
19 October 2007
In an announcement that will undoubtledly excite beer lovers around the country brandhouse, the South African joint venture company owned by Heineken, Diageo and Namibia Breweries, celebrates the return of South Africa’s favourite premium beer, Amstel Lager.
It’s a much anticipated reunion, and the celebrations around this include a multi-million rand advertising campaign and a huge consumer event at the trendy urban Newtown Park, Mary Fitzgerald Square in Johannesburg.
Here over 500 celebrities and media guests will gather to welcome Amstel back, whilst being entertained by a star-studded line-up.Amstel is now available in both the 750ml ‘quarts’ and 340ml ‘dumpies’, as well as in draught format and 330ml and 440ml cans, the internationally preferred metric.
Premium beer continues its rapid growth as consumers trade up from mainstream offerings. Amstel has for many years been South African consumers’ premium brand of choice, enjoying 49% of the total premium market. brandhouse’s track record for growing premium beers is unrivalled. With a portfolio that includes Amstel, Heineken, Guinness and Windhoek.
The company now potentially enjoys 68% of the premium beer category in South Africa and potentially 11% of the total beer market. Heineken grew by over 80% in the last year and the Windhoek range is growing by nearly 30% per annum. With Amstel coming back, and an expected surge of interest from the public, demand is anticipated to increase dramatically.
To manage this, brandhouse is increasing its staff complement by 30%, mostly in the commercial area enabling a significant increase in market penetration. The company has also significantly upweighted its supply chain capability and with its distribution partners, has substantially increased its investment in warehousing space and delivery vehicles. “It is wonderful that we can celebrate Amstel’s return with our loyal consumers,” explains brandhouse managing director Simon Litherland. “We have brought Amstel back to South Africa in the promised timeframes and believe we are also on track to claiming back Amstel’s market share. Local and global teams pulled out all the stops in the past months to bring Amstel back to South Africa’s consumers – making this week’s massive celebration even more satisfying.” Litherland says brandhouse has had a fantastic three years since the joint venture was created in July 2004, significantly outperforming the market across its portfolio of spirits, RTDs and beer brands: “Amstel has served as the catalyst for our next stage of growth.
We look forward to continuing to grow our share in the premium beer market as well as in our other existing categories. We will also continue to grow our consumer offerings and participation where opportunities exist. For example, we launched Foundry Premium Cider in September as a new entry in the cider category. brandhouse says plans to build a brewery to produce Amstel in South Africa, in partnership with its global shareholders, are progressing well which will mean a significant inward investment to South Africa while providing further employment opportunities. Further details will be announced as soon as possible. So Amstel Lager is back, and production and distribution are on track.
It’s a reason to celebrate and welcome a reunion that many South Africans will be delighted to share in.
brandhouse welcomes Amstel back to South Africa
11 June 2007
Amstel Lager, one of the best-selling premium beers in South Africa, will be available to consumers from the first week of July 2007.
Brandhouse Beverages (Pty) Ltd, the local joint venture company owned by Heineken N.V., Diageo plc and Namibia Breweries Limited, will now market and distribute Amstel in the Southern Africa region. Amstel joins brandhouse’s already impressive premium beer portfolio including Heineken, Guinness and Windhoek. It will be marketed and distributed alongside its premium spirit portfolio that includes Johnnie Walker, Bells, J&B, Smirnoff and Captain Morgan Spiced Gold and Black Label.
Brandhouse managing director Simon Litherland says: “We would like to thank loyal Amstel drinkers for their patience over this period. We have truly pulled out all the stops to bring Amstel Lager back to South Africa as quickly as possible. This has taken a great deal of strategic planning, sourcing of input materials and dedication of the European teams. We have focused all of our energies on this goal over the past three months.
“Amstel is already back in South Africa. However, to ensure fair distribution, we are currently stocking up our distribution pipeline with the imported premium Amstel so that the cans will be available around the country from early July. We are also pleased to confirm that bottles, both the 750ml ‘quart’ and 340ml ‘dumpies’ will be available from October,” says Litherland.
“Amstel is being produced at Amstel breweries in Europe, to the exact same recipe and specifications to date, ensuring that the South African consumer will enjoy the same premium Amstel as before.
“Further, we are absorbing all associated costs of production and transportation for importing Amstel from Europe and we do not expect to change the current pricing strategy of Amstel in South Africa so that consumers will be able to buy it at the same price as it was sold previously.
The new 330ml and 440ml cans are aligned to both the internationally preferred metric and will be the industry norm going forward in South Africa. As of June 2007, the Windhoek and Heineken trademarks will be leading the industry and moving into these new pack format sizes.
Brandhouse will launch a major media campaign within the next few days to communicate directly with consumers about the brand’s retail availability. The company has also set up a hotline to handle all consumer queries that will be live from Monday 11, July 2007 and open from Monday to Friday from 8am to 5pm. The number is 0800 227 222.
For the longer-term, Litherland confirms Heineken N.V.’s in-principle decision to build a brewery over the next two years in South Africa.
“Although details cannot yet be announced, it will certainly represent a substantial investment, bringing much needed employment to the country and contributing significantly to economic growth.
“Brandhouse is delighted that the brand will be back in South Africa under our umbrella. Our current share of the premium beer market is about 19% and with Amstel it will be 68% as Amstel is the premium brand of choice, holding 49% of the total premium market. Heineken, which is also positioned in the premium segment, has grown 48% in the last year and the Windhoek range is growing over 20% per annum. We are confident that Amstel will continue to flourish as consumers return to drinking the premium brand of choice.”
“Brandhouse has had a fantastic three years since the joint venture was created in July 2004 and Amstel will serve as a catalyst for our next stage of growth. We look forward to continuing to grow our share in this profitable beer market,” Litherland concludes.
Heineken N.V. regains Amstel brand in South Africa and announces new brewery
12 March 2007
Amsterdam - Heineken N.V. announced that with immediate effect its subsidiary Amstel Brouwerij (“Amstel”) has exercised its right to terminate the contract with South African Breweries for the production, marketing, sale and distribution of Amstel Lager in Southern Africa.
follows an arbitration award by the International Court of Arbitration
of the International Chamber of Commerce in favour of Amstel. In addition, Heineken also announced that it has taken an
in-principle decision to construct a brewery in South Africa.
Lager will be marketed, sold and distributed in South Africa through
Brandhouse Beverages (Pty) Ltd., the Cape Town headquartered joint
venturebetween Heineken, Diageo and Namibia Breweries. Until the new
brewery iscomplete, the production of Amstel Lager will be sourced
from existing Amstel breweries in Europe. Tom de
Man, Regional President Africa and the Middle East of Heineken N.V.,
commented, “Regaining the Amstel brand is an important development for
both the Heineken and brandhouse businesses. It allows us to further
strengthen the existing brandhouse portfolio and it represents a
significant step in building our business in this profitable beer
market.” brandhouse Managing Director, Simon
Litherland, commented, "We are delighted with Heineken's announcement
and the developments around Amstel.
Amstel will be a fantastic addition
to our premium brand portfolio and will bring significant scale to our
existing beer business". Amstel Lager is positioned
in the premium segment of the South African market and has an 8% market
In 2006, the premium segment grew above 20%, whilst the total
South African beer market grew at 1%. Amstel
initiated the arbitration in 2006 following its conclusion that the
acquisition by BevCo LLC of a 15.04% shareholding in SABMiller resulted
in a material change in ownership of SABMiller which Amstel reasonably
considered to be harmful to the interests of the Heineken Group.
Consequently, under the terms of the contract, Amstel became entitled to
terminate the agreement.
Comments on 2007 Budget - Excise duties on alcoholic beverages
28 February 2007
“The increases in excise duties on alcoholic beverages as announced by Finance Minister Trevor Manuel are basically in accordance with the government’s stated policy of maintaining a total tax burden (excise duties plus VAT as a percentage of the retail selling price) of 23% on wine products, 33% on malt beer and 43% on spirits. We had been expecting the increases. They represent the government’s efforts to close the existing gap with policy, as we’re still catching up with the stated tax burden levels, plus inflation," says Franklin Pieterse, Corporate Affairs Director at Brandhouse Beverages (Pty) Ltd.
“brandhouse, together with other industry players, has been regularly
engaging with the government on the issue of tax.”Last year’s
duty increases as announced by Manuel saw that for malt beer, ciders and
alcoholic fruit beverages rise 4.8% on a real basis, while that for
spirits was increased by 5.3%.
brandhouse beverages (Pty) LTD is
one of the largest alcoholic beverage companies operating in South
Africa. It distributes some of the country’s most well know and fastest
growing brands including Johnnie Walker, Bell’s and J&B whiskies,
Heineken, Windhoek and Guinness beers, Smirnoff vodka, Captain Morgan
rum and Baileys, amongst many others.
brandhouse beverages (Pty)
LTD is a joint venture company formed in South Africa in July 2004 by
Diageo, Heineken and Namibia Breweries Ltd.
Diageo is the world’s
largest alcoholic beverage company and is listed on London’s FTSE
exchange with a market capitalisation of approximately £20bn.
brewer Heineken is the fifth largest and arguably best-known brewing
company in the world, while Namibia Breweries Limited is one of the
leading manufacturing companies in Namibia and part of the respected
Olthaver and List Group.
Excise duties as announced in BUDGET:
| Malt beer
|| R39.61 litre
Smirnoff® South Africa to invade Brazil Carnival
02 February 2007
The challenge is officially out there – Dress your Best for the Brazil Carnival Party this February, and stand a chance to win a Wildcard package to the annual Carnival in Salvador, Brazil.
Salvador, Brazil hosts the biggest global Carnival each year,
attracting over 4 million people.
The 2007 ‘Samba’ themed carnival is no
exception with a guest list of note. Carnival festivities, commencing
15-21 February, promises to attract the likes of Madonna, Robert De
Niro, Quincy Jones and Shakira, is packaged to deliver a street-party
like no other. Out of the thousands of entries submitted from
October 2006, winners have finally been selected this month.
include Ofentse Mookang, Wesley Bradshaw, Wiseman Maphisa, Michael
Mavuso and their partners. Smirnoff® however have taken it up a notch,
and launched the Smirnoff Wildcard Competition. A massive Brazilian
Carnival send-off party for the winners and public alike, will take
place in Johannesburg next week, where Smirnoff has sanctioned the
selection of the last Wildcard winner to be done live at the party.
means ONE lucky clubber at the party, will walk away with the last two
tickets to the Brazil Carnival under an impartial public display. Taking
place on Friday, the 2nd February 2006 at the Palms in Sandton from 9pm
onwards, the venue is set to transport clubbers to the Brazil Samba
atmosphere. Jozi’s own DJ Monde and Nutty Nys will provide Samba house
tunes while Brazilian dancers set the ambience. The cover charge is R100
at the door.
The rules are simple: Dress your Best – remember
the theme is Samba Carnival, Be there between 9 and 11pm, Expect the
unexpected A panel of judges comprised of 5 top South African
personalities, including Top Billing’s / Strictly Come Dance winner
Zuraida Jardine, will select the best dressed Smirnoff patron at this
party. So hire, borrow, design or buy anything Brazilian
Carnival style but make sure you come strut your stuff, you might just
walk away with an experience to remember at the Brazil Carnival in
Salvador "Smirnoff is not for sale to persons under 18 years.