Clear Beer leads in KBL portfolios
Kgalagadi Brewery holdings limited (KBL) Managing Director, Carlos Bernit has said sales performance continue to grow as total volume grew by 4.3 percent compared to the previous year.
During 2024, the company saw improved performance in Clear Beer, and a drop in Traditional Beer performance, due to trade-up in the market. Benit highlighted that Clear Beer grew approximately four times ahead of the company’s 5-year compound annual growth rate (CAGR), mainly through its Core Brands, with local production substituted with imported convenience SKUs and expansion of BB portfolio to meet local demand. “Additionally, volume grew 9.71 percent compared to 2019. The company demonstrated great resilience and agility in executing initiatives and delivering sales volumes in a highly regulated and challenging market, resulting in improved volumes.”
He said the company continues to solidify its position as the market leader in the beer market, co-leading the premium beer segment and is becoming a strong challenger in the beyond beer market through continuous innovation.
Bernit highlighted that the Clear Beer category grew overall by 9.1 percent compared to the previous year. “The growth in Clear Beer sales versus 2024 was mainly driven by our Core Brands and consolidating our premium leadership in the market and continue our expansion on BB segment.' However, he said KBL lost market share largely due to supply challenges with Core bulk packs. The Premium brands continued on an upward trajectory, with a growth of 43.7 percent compared to the previous year and three times more compared to 2019. The Core category grew by 9.5 percent compared to the previous year, with Carling Black Label leading the growth.
Sechaba Brewery Holdings Managing Director, Faith Nteta said the Group's net revenue increased by 14 percent.
'In terms of profit after tax, KBL achieved a nine percent increase in comparison to prior year mainly driven by price, volume as well as product mix.” Coca Cola Beverage (CCBB) had a 32 percent increase in profit after tax mainly due to increase in net sales revenue as driven by increased volumes.
On the Beyond the beer category, KBL achieved growth of 5.8 percent compared to the previous year and by 51.9 percent compared to 2019, led primarily by Brutal Fruit, which was introduced in late 2022. Brutal Fruit grew by 54.7 percent compared to the previous year, and Flying Fish grew by 5.7 percent compared to the previous year. However, the business saw a 32 percent decline with Redd’s Vodka Lemon, which was also impacted by supply challenges and a decision by the business to sacrifice capacity and focused on 750ML pack production. Bennit said the business is optimistic about future performance, with plans to improve the availability of the brand and to expand the portfolio by bringing new innovations to the market.