Intermittent Beer Stock Shortage Anticipated Following Unusually High Demand And Continuing Glass Shortages

Date: 12 June 2007
Source: Moneyweb

Date: 12 June 2007

The South African Breweries Ltd (SAB) said today that the company continues to experience 'unusually high' demand for this time of the year, across its range of brands.





"While we're obviously delighted with the increase in volumes, it's proving quite difficult to keep up with demand in certain areas," said SAB Sales & Distribution director, Wayne McCauley. "The premium sector is showing particularly good growth," he said.



"The effect of SA's buoyant economy is driving demand and creating pressure on our business as well as that of suppliers, particularly glass. High demand for brands in returnable bottles has put pressure on the availability of these packs and increased demand for non-returnable bottles has resulted in temporary stock shortages of certain brands which will continue intermittently over the next 2-3 months



McCauley said consumers were buying increased volumes across the spectrum of SAB premium brands, which include Castle Lite, Peroni Nastro Azzurro, Pilsner Urquell, Hansa Marzen Gold and Miller Genuine Draft, as well as in mainstream brands, with Hansa Pilsener and Castle Lager showing good growth. Hansa Marzen Gold, launched last month, was already performing well ahead of projections.



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