Bud to be shipped to Africa

A-B InBev has confirmed to BG it will be importing the vast volumes of Budweiser it hopes to sell at the football World Cup in South Africa this summer, scotching speculation the firm was seeking a brewing partner in Africa for the event.

Shipment of the ‘official beer’ of the World Cup into South Africa is likely to be a costly enterprise for the brewer, which has exclusive pouring rights at the stadiums hosting all matches taking place during the event.

“Budweiser will be available as imported beer for the 2010 FIFA World Cup South Africa,” confirmed A-B InBev’s global director for worldwide sports & entertainment, Eelco van der Noll.

He declined to comment on whether the firm had been seeking licensing agreements with any brewers in Africa to satisfy demand for Budweiser during the World Cup.

Last year in an exclusive interview with BG, SABMiller’s director of human resources and supply chain Tony van Kralingen said: “I think they’re looking for someone to do a deal with and they might find someone to contract brew. I guess they’ve talked to Heineken about contract brewing.”

SABMiller dominates the South African market, although its 97% market share of a few years ago has been eroded since 2007 when the firm lost rights over Amstel in the country to Heineken.

Since then a joint venture between Heineken, Diageo and Namibia Breweries has been a rising force in the country. Last September the group commissioned a new brewery near Johannesburg.

A-B InBev will have faced further costs in ensuring supply to the World Cup. As market leader, SABMiller owned dispense equipment in the South Africa’s stadiums, facilities it was not willing to allow its rival to use during the event.

“They can’t use our pouring rights,” said van Kralingen last year. “That means A-B has got to invest quite a significant amount of money in getting all their facilities right in order to cater.” But A-B InBev appears unfazed.

Van der Noll said: “Being the official beer sponsor of the FIFA World Cup is an amazing brand awareness builder for Budweiser, creating a connection with South African consumers and attending fans, particularly those who travel on business or holidays to other parts of the world.”

Based on the following sources:
http://www.brewersguardian.com