Brewers, Beverages & Liquor Distribution

In 2001 the value of national output in the beverage sector was R23,7 billion of which beer represented R 9,3 billion. It has been estimated that beer consumption in the Eastern Cape exceeds 150,000 tons per annum, while the soft drink industry is over 250,000 tons per annum or over 2.5 million litres.   

Clear beer

The brewing of clear beer in the Eastern Cape is confined to Port Elizabeth Redhouse where a large brewery supplies the entire province to depots in East London, Queenstown and other centres.  

Beer is distributed from the Redhouse warehouse to various regional depots throughout the province by road, although a large volume is delivered by rail to the East London depot. Brewers contract a range of different transport operators to distribute their products, usually in neutral liveries, using brewery-owned trailers.

The input commodities include 15 000 – 16 000 tons of malt per annum, 10 000 tons of brewing sugar and about 100 tons of hops from the Blanco, George area, with some imports from Europe for specialty brands and local water. The malt is transported by rail and the balance by road. A further small amount clear beer is imported from Namibia and Europe and distributed throughout the Eastern Cape. The estimated volume of beer brewed and distributed in the Eastern Cape amounts to approximately 2 million hectolitres (2-million litres) per annum of which about 261 000 hectolitres is sent by rail to East London

Traditional (Sorghum) beer

Traditional [sorghum] beer is brewed in the province. The breweries have a system of satellite depots covering the province. The main inputs to the brewing process are maize powder, malted sorghum, coal, and packaging. The inputs are estimated to amount to about 2,000 tons per annum, excluding water. The output of the brewery in the Eastern Cape and KZN is estimated to be 10 million litres of beer, distributed through about 20 depots. 

Beverages 

Beverage production is primarily located in East London and Port Elizabeth with various distribution depots scattered around the province. The market is dominated by a few large organisations which supply canned and bottled products. Carbonated beverages are the main form of production, followed by fruit juices of various types bottled and packed in cartons. There are several smaller producers of bottled soft drinks that have carved a niche for themselves in their local areas.

The major inputs to the production of beverages is sugar, carbon dioxide (CO2), water, and packaging (bottles and cans). Non-alcoholic beverage markets that showed particular good growth in 2006 include bottled water, energy drinks and iced tea. Some these non alcoholic beverages which are manufactured in the Western Cape and Gauteng are marketed and distributed in the Eastern Cape

Beverage production is estimated to be about 50 million cases, giving an annual amount of 750,000 tons of products for distribution. About 5% of this total is made up of sports drinks, energy drinks and flavoured waters but 95% of the total is a range of carbonated soft drinks. The Perseverance distribution centre distributes approximately 370 000 tons of bottled and canned softdrinks annually to the certain areas in the Eastern Cape. The areas covered includes Port Alfred to the east, Murraysburg to the north and George to the west. 

Liquor Distribution  

The distribution of liquor, is dominated by 3 major organisations involved in the distribution of liquor produced in South Africa and imported from overseas. Products are received from the Western Cape wineries and cider producers, and distilleries in KwaZulu-Natal and Gauteng. Specialty liquors and ciders from a range of overseas countries including Europe, Britain, USA and the Caribbean are imported in containers.

Total liquor imports to South Africa are about 100,000 tons p.a. of which approximately 7,000 tons are distributed in the Eastern Cape. Estimated consumption of all liquors in the Eastern Cape is 25,000 tons of wine, 30,000 tons of cider and 15,000 tons of spirits.

Transport in the Industry 

Transport of the inputs to the brewing industry are largely by road, and include 10 000 tons of brewing syrup per annum, 100 tons of hops, carbon dioxide, bottles and packaging. The large brewery in at Redhouse in Port Elizabeth also receives 15 000 to 16 000 tons of malt by rail per annum. 

Virtually all inputs to the liquor distribution industry are received on road, mainly from Western Cape and Gauteng and from the ports of East London and Port Elizabeth in containers. Most of the output products of the brewing, beverage and liquor distribution are handled by road between production plants, depots, or warehouses and point of sale to wholesalers, retailers, and hospitality establishments. The make-up of the fleet is made up of beverage vehicles with curtain sides and the vehicle group includes rigids, articulated and interlinks. The soft drink distribution centre at Perseverance receives approximately 45 loads per day, averaging 30 tons per pay load from the manufacturing plant in Lakeside. The outbound distribution varies from 42 loads to 53 loads per day, depending on the vehicle being used. 99% of the transport is done in-house. The only trucks that are outsourced are those delivering in Beaufort West.