SA beer war brews

Heineken snatches Amstel back from SAB Ltd, knocking 9% of its local beer sales

South African beer giant SAB Ltd has lost a forty-year-old brand and nearly a tenth of its domestic beer volumes overnight, as Heineken moved in to take back its control over Amstel Lager in South Africa. The aggressive move by Heineken, which came as a surprise to SAB Ltd, but which has been rumoured for over a year, marks the possible start to a beer war in the South African market.

Compared with the SAB's entrenched position in South Africa, Heineken is but a minnow. Through Brand House, a joint venture with Diageo, it represents about 2% of the South African beer market through its Heineken and Windhoek brands. But, says Coronation Fund Managers' Dirk Kotzé, with the addition of Amstel, this share is catapulted up to 10%.

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