A three-way fight over control of Africa’s beer industry could be approaching its endgame.
The tussle between Heineken NV, Diageo PLC and units of Anheuser-Busch InBev SA for control of the continent has been going on for decades.
Heineken’s acquisition of South African winemaker Distell Group Holdings Ltd and Namibia Breweries Ltd to create a US$4.5 billion business, announced this week, might be a final piece of the puzzle.
The attractions for brewers of a region overlooked by other global businesses should be obvious. Beer is all about demographics, and Africa’s are among the most promising.
By 2050, its nations are
Distell Group Holdings Ltd. expressed frustration after alcohol drinks makers, smarting from bans that crippled their sales during coronavirus lockdowns, were hit with an 8% increase on excise duties in Wednesday’s budget. The increased levy is likely to boost the market for illicit booze that exploded during South Africa’s lockdowns.
While the government contends that the higher taxes are aimed at reducing harmful drinking, “I’m not sure that’s necessarily the case,” Richard Rushton, Distell’s chief executive officer, said in an interview. “These hikes are sadly just going to essentially push an increasing amount of consumption to the gray market.”
Before the arrival of Covid-19 in South Africa, Berene Sauls had dreams of growing grapes near her home village and expanding her fledgling wine business.