By Jeremy Sampson
If one asks what the alcoholic drink of choice in Africa is, it would be beer, and invariably a local brand. Reviewing the 2024 Brand Finance Africa 200 report (released in May 2024), there are no less than 15 brands listed from six countries: Ethiopia, Kenya, Nigeria, South Africa, Tanzania and Uganda.
That said, global headwinds affect Africa just as they do the rest of the world. This includes reduced disposable income due to inflation and lack of economic growth, global warming, which impacts the South African wine and spirits industry, a drop in global alcohol consumption by Gen Z and a rise in prices of imported brands due to local currencies losing value to the US dollar.
Look no further than the deflated share price of the largest drinks company in the world – Diageo, any active brand in Africa. A major driver of consumption worldwide is sporting events such as the recent Uefa European Football Championships. While Africa, as a continent, remains dislocated in many ways, individual countries benefit from local tournaments, with football leading the way by some distance.
It is also interesting how many “local” African brands are today owned by global giants, with two being Kenya’s Tusker – owned by UK-based Diageo – and South Africa’s Castle Lager – owned by Belgium-based Anheuser-Busch InBev.
As Africa’s most valuable beer brand (2024 brand value at $698 million or R12.8 billion), Castle Lager has experienced a stellar year, with 22% growth compared to its brand value in 2023 ($574m), significantly supported by the brand’s heavy sports sponsorship and innovative “Bread of the Nation” campaign.
In the world of spirits, South African gin brand, Inverroche, has been a stunning success, riding the gin wave with more than 20 botanical flavours. Launched in 2011, part of the brand’s recent success has been French giant Pernod Ricard taking a majority share, maintaining authenticity while applying its marketing skills and adding financial muscle to expand the brand internationally.
Jeremy Sampson is the chairperson of Brand Finance Africa.
BUSINESS REPORT