Raising the bar
MARC HASENFUSS: How AB InBev wants to blunt Distell's cider thrust
Distell shareholders will probably need a stiff drink after perusing AB InBev’s results
The release of Distell’s year to end-June numbers next week may be sobering in terms of assessing additional competition in the cider and near-beer niches. Distell’s two cider brands, Hunter’s Dry and Savanna, have carved out a lucrative niche in SA and Africa — so much so that the company ranks as the second-biggest cider producer in the world by volume. It’s common knowledge that frothy profit contributions from Hunter’s and Savanna have buoyed Distell’s profit numbers over the past two decades. In the interim results to end-December 2016 Distell already hinted that the cider party was quietening down, with volumes affected by pricing and, perhaps more worrying, increased competition. Distell explained that ciders were affected by "trade down" as disposable incomes were under pressure, but it also noted "intensified beer pricing and pack activities in formal channels as well as recent RTD [ready-to-drink] launches". Any Distell shareholders who were a little rattled by these admis...
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