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Tough economic times drive South Africans to cheaper drink

South Africans are drinking less and foregoing premium brands for less expensive screw-tops thanks to tough economic times.

23/06/2016

EuroMonitor International's latest market research shows that inflation, rising fuel costs and higher taxation forced drinkers to slash their booze bills last year. Higher-end whisky and brandy took a dive as consumers turned to cheaper vodka, beer and wine.

"Some low-income consumers are notably shifting to more affordable beer or even to illegally produced alcoholic drinks," EuroMonitor researchers said. "Many consumers are also shifting towards more affordable options within spirits, such as economy rum and vodka. "However, some economy spirits are suffering from these trends, with cane spirits notably seeing a 4% total volume decline in 2015.

" According to the World Health Organisation, SA has the highest alcohol consumption rate in Africa and one of the highest in the world. It estimates that South Africa's drinking population consumes 27.1 litres of alcohol per capita per year compared with a global average of 6.2 litres. However, local experts predict that cash-strapped consumers will continue to cut down on the hard stuff this year. The latest liquor consumption patterns report, released four months ago by the SA Wine Industry Information & Systems, showed that South Africans consumed almost four billion litres of alcohol worth R96.5-billion last year. "With a population growth of 2% and annual volume growth of only 1%, the per capita consumption is declining by at least 1% per year," industry analyst Elias Holtzkampt said in the report.

 

Image courtesy and full article can be found at : http://www.timeslive.co.za/thetimes/2016/06/23/Tough-economic-times-drive-South-Africans-to-cheaper-drink

 

 

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