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Sorghum beer market declines in volume
This market is expected to remain under pressure as the crop yields continue to fluctuate.
The wet-based sorghum beer price per litre increased in 2012 as the market transitioned from the 20-litre bucket to the higher priced 1L carton and 2L plastic pack sizes.
The dry-based sorghum beer price per kg showed the largest relative increase in the midst of the volume decline. The price per kg increased substantially in 2012. The drivers of this price increase were twofold. Firstly, the lack of local supply, with fairly consistent demand, resulted in natural market forces pushing up the price. In addition, given the lack of local supply, more expensive, imported volumes were brought in to reduce the shortfall. This further compounded the high category pricing.
2012 Channel Distribution
Wholesale followed by on-consumption remain the two leading distribution channels
2012 Local Distribution
Distribution in the Gauteng and Western Cape remains relatively constant
BMi Research specialises in consumer and industrial research in various sectors, including the retail market. For more information, go to www.bmi.co.za.