SABMiller tweaks its products for US, SA
--------------------------------------------------------------------------------
South African tipplers are heading for lower- alcohol drinks while Americans are heading for lower-carbohydrate beverages, creating a different scenario for global brewing company SABMiller's subsidiaries in the two countries.
SABMiller US subsidiary Miller Brewing is slimming down its portfolio of alcoholic fruit beverages in a slower-than-anticipated market, while in SA, SABMiller's local subsidiary, South African Breweries (SAB), is scoring successes over its rivals with Redds and Brutal Fruit.
Miller Brewing said it had agreed with its partners, Allied Domecq and Brown-Forman, to terminate arrangements under which Miller produced flavoured malt beverages.
From April, Brown-Forman will produce Jack Daniel's Original Hard Cola, while Miller will stop shipping Stolichnaya Citrona and Sauza Diablo, in which its partner is Allied Domecq.
Miller said it was reinforcing its commitment to its flavoured malt beverage SKYY Blue and new extension SKYY Sport, which will appear in retail outlets from early next month.
Miller spent $16 million launching SKYY Blue, Stolichnaya Citrona, Sauza Diablo and Jack Daniel's Original Hard Cola in 2002.
"The company hoped to capitalise on the growing popularity of flavoured malt beverages, which use a fermented malt base spiked with vodka, tequila, citrus and other flavours. But the craze was starting to fade as Miller's drinks hit the market," according to website just-drinks.com.
Distell recently said that although the market share of flavoured alcoholic beverages remained static last year compared to 2002, at 6,6%, SAB had been gaining market share with Redds and Brutal Fruit.
Business Day
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
