Feb 27 2009

Diageo grabs global rights for Windhoek

Published by at 2:21 pm under Companies,More News

The trio of Heineken, Namibia Breweries Limited (NBL) and Diageo moved a little closer today towards becoming a full-blown headache for SABMiller in Southern Africa, when LSE-listed global premium brand marketer Diageo announced it had secured the global rights (with the exception of a few countries in Africa) to brew and distribute all Windhoek beer brands from owner NBL for 10 years.  

Full report here.

In South Africa the Windhoek brands are distributed by Brandhouse, a joint venture between Diageo, NBL and Heineken. Diageo has a 14.6% stake in NBL. Diageo and NBL also agreed to combine their distribution networks in the rest of Southern Africa. Diageo will take commercial responsibility for the combined portfolio.

The SA beer market has grown increasingly competitive since Heineken pulled SAB’s right to brew Amstel in March 2007 and decided to brew its own Amstel. At the time, SAB’s market share in SA stood at 97%. By the end of last year it had dropped to around 93%. 

In January this year BeverageWorld quoted Coronation Fund Managers analyst Dirk Kotze as saying the industry is looking forward to the inauguration of the Heineken brewery later this year. All on that brewery here.

One response so far

One Response to “Diageo grabs global rights for Windhoek”

  1. adminon 27 Feb 2009 at 4:58 pm

    Meanwhile, back at the ranch, SABMiller bought three brewers in China.

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