Africa-Press – Botswana. Kgalagadi Breweries Limited (KBL) and Coca-Cola Beverages Botswana (CCBB) recorded volume growth in the 2024 financial year, according to the Sechaba Holdings Limited 2024 Annual Report.
Sechaba owns a 49.90 percent stake in both KBL and CCBB, with the remaining shares held by AB InBev and Coca-Cola Beverages Africa, respectively.
KBL’s total volume increased by 4.3 percent year-on-year, attributed to enhanced promotional activity, portfolio innovation, and a premiumisation strategy.
Clear Beer drives growth
“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,” the report states.
The Clear Beer category recorded 9.1 percent growth compared to the previous year, led by KBL’s Core Brands and continued momentum in the premium segment.
Premium brands saw a 43.7 percent year-on-year increase, tripling their 2019 performance, while Core Brands expanded by 9.5 percent, with Carling Black Label named as the top performer.
Supply gaps
According to the report, the second half of the year marked a recovery despite ongoing challenges. “Clear Beer grew approximately four times ahead of our five-year CAGR,” the report says.
It notes that the recovery in Clear Beer volumes was achieved despite a decline in Traditional Beer performance and some supply gaps in the northern region.
However, the brewer experienced a decline in market share due to supply constraints, particularly in Core bulk packs.
Brutal Fruit, Flying Fish grow Beyond Beer
The Beyond Beer (BB) portfolio registered a 5.8 percent increase compared to 2023 and a 51.9 percent rise from 2019. This growth was spearheaded by Brutal Fruit, which grew 54.7 percent following its 2022 market entry, and Flying Fish, which posted a 5.7 percent increase.
“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,” reads the report. However, Redd’s Vodka Lemon sales fell by 32.0 percent, largely due to supply issues and the company’s decision to prioritise the 750ml pack format.
Volume gains for CCBB
CCBB’s total volume reached 23.2 million unit cases, representing a 10.4 percent increase from the previous year and exceeding its business plan by 3.1 percent. Categories contributing to the growth included Sparkling Soft Drinks (up 3.2 percent), Cordials (up 11.4 percent), and Juices (up 4.4 percent).
“Botswana experienced an inflation rate of 3 percent in 2024, a significant decrease from 5 percent recorded in 2023,” says the report. “This contributed to better sales despite increased commodity prices affecting specific products like Mazoe Orange Crush.”
A major challenge emerged in the third quarter during the July implementation of Microsoft Dynamics 365, leading to system issues and lost sales.
System rollout affects Q3
“The most significant setback occurred in Q3… leading to system adaptation challenges, master data misalignment, and lost sales,” the report states, adding that recovery was supported by advance stockpiling in June.
While Water declined slightly by 0.3 percent versus plan, it still grew by 13.4 percent compared to 2023. Energy drinks, on the other hand, declined by 53.5 percent, impacted by regulatory hurdles.
Despite halting Mazoe Orange sales in October due to negative margins, Cordials ended the year positively. A 330ml PET pack for Sparkling Soft Drinks was launched in August, aiming to tap into the affordable segment and drive market expansion.
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