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Retail News South Africa

Returnable beer bottle to be introduced locally

South African Breweries Limited (SAB) announced on Wednesday, 2 August 2006, that it would be introducing a new 330ml returnable bottle for three of the company's core brands - Castle Lager, Carling Black Label and Hansa Pilsener. This is the first time that a returnable bottle in this size has been seen in South Africa.

Comments SAB communications manager Michael Farr, "Consumer research showed us clearly that there was demand for a more individual drinking experience at an attractive price. The 330ml single serve returnable provides our core consumer base with the opportunity to exercise individual choice with a single serving at a very competitive price. At between R4.00 and R4.30 versus R5.00 for the non-returnable 340ml serving, it is an attractive value proposition."

"Significantly, we believe that as we roll out this new returnable bottle nationally, we will witness a major reduction in litter. Given that a sizeable proportion of South African households are without formal refuse collection, consumables that allow a package return are particularly important."

Farr says that the packs would be produced initially at Alrode brewery in Gauteng, with Newlands Brewery in Cape Town and Prospecton Brewery in Durban adding the pack from the end of August and mid-October respectively.

The new packs will be rolled out in the Johannesburg, Pretoria and Bloemfontein areas in the beginning of August, with the Cape region following in mid-September and the Durban area following in mid-October.

"Consumer needs are central to our offering and in this respect, the R5-billion upgrade to our facilities announced in the last two years is designed to maximise flexibility in packaging within our operations. Our manufacturing capability and flexibility allows us a reasonably rapid response to consumer demand and trends, which was demonstrated by our introduction last year of a larger size bottle - the 660ml - in our Miller Genuine Draft and Brutal Fruit brands," concludes Farr.

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