Emerging market for brewers

Brewers to Benefit from Emerging Market

SAB Miller is the fastest growing in the Sub-Saharan Africa’s region.

Brewers are set to benefit from the growing consumer market in Africa as more people in the continent move from home-brewed beer and spirits to commercially produced alcohol, according to report by Moody’s Investors Service.

The report says the overall profitability of alcoholic beverage companies' operating in African operations is high and most should benefit from continued growth in the premium segment.

The beer market in Africa currently represents only 5% of worldwide volumes with four players controlling more than 80% of the market - SABMiller, Diageo, Heineken and Castel Group. They have all obtained a first-mover advantage among brewers operating in the continent.

Brewers are set to benefit from the growing consumer market in Africa as more people in the continent move from home-brewed beer and spirits to commercially produced alcohol.

SABMiller is the fastest growing in the Sub-Saharan Africa’s region and Nigeria is one of the largest Guinness markets in the world for Diageo. In the premium segment, the Heineken brand is showing a higher rate of organic growth in Africa and the Middle East than the company's total volume growth in the region.