Global brewers' expansion to boost African agriculture

Wednesday, January 7, 2015

Subject

Outlook for the brewery industry in sub-Saharan Africa.

Significance

Sub-Saharan Africa (SSA) is home to one of the fastest-growing beer markets in the world, albeit from a low base. Following the lead of SABMiller, which earned 14% of its global beverage profits from SSA in 2013 (excluding South Africa), large international brewers are implementing strategies to supply low-cost products tailored to local tastes and contexts.

Impacts

  • Increased alcohol consumption could drive an upswing in lifestyle-related diseases, creating demand for specialist medical care.
  • Efforts to reduce alcohol consumption in South Africa through strict licensing may result in lost income for slum-based home brewers.
  • Rising demand for beer will vary geographically -- with increases concentrated in non-Muslim states and certain sub-national regions.
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