Gauteng Business 2016 edition

OVERVIEW
and Agricultural Biotechnology Institute (FABI) is located at the
University of Pretoria.
Malt and Beer
ing is focused on the production
of strategic value-added products
such as soya beans, rooibos tea,
beverages, fruit and vegetables.
A number of agriculturefocused
research institutions are
based in the province, providing
critical support to agricultural
production. For instance, the
Agricultural Research Council’s
(ARC) national research facilities
are located in Pretoria, and include
the Roodeplaat Vegetable
and Ornamental Plant Institute
and the Onderstepoort Veterinary
Institute. In addition, the Forestry
Three of the seven breweries operated by SAB in South Africa are
located in Gauteng, and various complementary industries, activities
and facilities (such as bottling plants and distribution hubs) have grown
as a result of the company’s presence within the province. In addition,
Heineken launched a new brewery in southern Gauteng in 2010, where
it will brew 400-million litres of beer per annum.
The alcoholic beverages industry is a significant contributor to
national GDP in South Africa. An estimated R94.2-billion (or 4.4 percent
of GDP) can be traced back to the industry’s manufacturing operations
and capital expenditure. The industry is also a major employer within
the country, employing in excess of an estimated 21 300 workers and
supporting an additional 66 000 jobs directly through suppliers.
Key players in the industry in South Africa include South Africa
Breweries (SAB) (malt beer), United National Breweries (sorghum
beer), Distell (spirits and flavoured alcoholic beverages, or FABs) and
Brandhouse (malt beer, spirits and FABs). Each of these firms holds a
substantial share of the respective segments of the market in which
they operate.
Brandhouse, the Heineken-Diageo-Namibian Breweries joint venture,
is SAB’s main competitor in the malt beer market, and the third
largest liquor company in South Africa by value of sales. In the case of
the wine industry, Distell, KWV and DGB control a number of brands,
while there are also a large number of smaller “independent” producers
actively competing in the industry in South Africa.
Gauteng is a key centre for the production of beer and malt within
South Africa. United National Breweries produces Umqomboti, a traditional
African beer, in northern Gauteng. The Amalgamated Beverage
Industries, a subsidiary of SAB, has a manufacturing plant in Midrand
which makes use of advanced technology. It also operates plants in
Devland and Pretoria.
Investment opportunities:
• Investment in the production of ground-nuts, sunflowers, cotton
and sorghum;
• Investments in agro-processing products such as soya beans,
rooibos, beverages, fruit, vegetables, and forestry;
• Essential oil extraction from herbs and indigenous plants;
• Expanding the ‘exotic’ meat (kudu, ostrich and springbok) market,
locally and globally;
81 GAUTENG BUSINESS 2016