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SOUTH AFRICAN CARBONATED SOFT DRINKS INDUSTRY LANDSCAPE REPORT

PUBLISHED: FEBRUARY 2020

COMPANY OVERVIEW

We offer B2B market research solutions to help you to

successfully improve or expand your business, enter new

markets, launch new products or better understand your

internal and external environment.

We believe in the advantage market research gives business leaders to fully understand their industry,

facilitate business strategy, improve company performance, and drive company growth.

Insight Survey is a boutique South African market

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COMPANY OVERVIEW

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Our bespoke Industry and Market Intelligence can help give the edge in a global marketplace, empowering your

business to overcome industry challenges quickly and effectively, and enabling you to realise your potential

and achieve your vision. From strategic overviews of your business’s competitive environment through to

specific competitor profiles, our customised Intelligence is designed to meet your unique needs.

QUESTIONS WE HELP ANSWER

o What is the current and future market size?

o What are the latest global and local trends impacting

on the market?

o Who are your key competitors and what is their

offering in terms of products, services, pricing and

branding?

OUR RESEARCH SOLUTIONS

Competitor pricing research

Store visits and store checks

Competitor interviews

Customer interviews

Company website analysis

Governmental held records

INDUSTRY & COMPETITOR INTELLIGENCE

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FOOD AND BEVERAGES INDUSTRY REPORT CLIENTS

We are a proudly South

African company that have

provided market research

solutions and Intelligence

reports to local and global

brands. We have worked with

some of the greatest

companies and brands in

their industries.

The South African Carbonated Soft Drinks Industry Landscape Report (119 pages) provides a dynamic synthesis of industry research,

examining the local and global Carbonated Soft Drinks industry from a uniquely holistic perspective, with detailed insights into the entire

value chain – from manufacturing to retailing, market size trends, industry trends, industry drivers and challenges, and pricing analysis.

SOME KEY QUESTIONS THE REPORT WILL HELP YOU TO ANSWER:

For the Global Carbonated Soft Drinks Industry Section:

o What are the current market dynamics of the Global Carbonated Soft Drinks industry?

o What are the key markets within the Global Carbonated Soft Drinks industry?

o What are the Global Carbonated Soft Drinks industry trends, drivers, and challenges?

For the South African Carbonated Soft Drinks Industry Section:

o What are the current market dynamics (market size, market value, market volumes): 2014-2019 Actual, 2020-2024 Forecasts?

o What are the South African Carbonated Soft Drinks industry trends, drivers and challenges?

For the South African Carbonated Soft Drinks Manufacturer & Distributor Section:

o Who are the key manufacturing and distributor players in the South African Carbonated Soft Drinks industry?

For the South African Carbonated Soft Drinks Retail and Pricing Analysis Section:

o Who are the key retail players (retail outlets and convenience stores) in the South African Carbonated Soft Drinks industry?

o What are the prices of popular Carbonated Soft Drinks brands across South African retail outlets?

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REPORT OVERVIEW

119-page report filled with detailed charts, graphs, and insights

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SCREENSHOTS FROM REPORT

o However, growing awareness amongst increasingly health conscious

consumers regarding the sugar content of CSD products could act as a

restraint on the market, as these consumers could potentially opt for

healthier alternatives. Additionally, the global CSD market’s growth could

be negatively affected by static growth in terms of consumption within

developing regions, as health awareness amongst consumers in these

regions increase.

o In terms of segmentation, the global CSD market can be segmented by

Flavour into Cola, Lemon, Lime, Orange, and Others. Based on Flavour,

the Cola segment is expected to continue to be the largest Flavour

segment up to 2024.

o In addition, the global market can be segmented by packaging type into

Bottles and Cans. Based on packaging type, the Bottles segment is

predicted to continue to be the largest packaging segment in terms of

revenue within the global CSD market up to 2024.

402.3444.7

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2020* 2023*

VALUE OF GLOBAL CARBONATED SOFT DRINKS MARKET: 2020* & 2023* (IN US$ BILLION)

The global Carbonated Soft Drinks (CSD) market is estimated

to be worth approximately US$402.3 billion in 2020, and is

predicted to grow at a CAGR of 3.4% to reach approximately

US$444.7 billion in 2023, as illustrated in graph below. In

terms of per capita revenue, it is expected that US$54 per

person will be generated in 2020, while per capita

consumption is expected to reach 28.1 litres.

o Overall, the CSD market growth over the past few years has been

attributed to the introduction of a wide variety of products catering to

changing consumer food trends. Furthermore, the increasing number of

younger consumers within developed regions and the increasing demand

for processed food products in developing countries has also driven the

growing demand for CSD products.

o Additional factors, which have driven the global CSD market, include

growing urbanised populations, rising consumer disposable income,

growing demand for takeaway food products, and greater accessibility of

products due to distribution channel expansion.

o There has also been a shift in preference amongst global consumers

towards craft soda products that contain a lower amount of calories and

sugar content, matching consumer health preferences in this regard.

o Packaging and labelling innovations for CSD products have also helped to

drive demand by adapting to consumer needs and by increasing product

and brand visibility.

2020 | 7Sources: MRF; MordorIntelligence; Hexaresearch; Statista; MarketWatch; Flaticon

* Estimate

SAMPLE FROM REPORTGLOBAL INDUSTRY OVERVIEW

Flavour Innovation

o Within the current market environment, CSD manufacturers have started

to explore various ways to regain declining market share.

o One of key trends which has arisen from this exploration process is the

introduction of exotic flavours. This ongoing trend currently represents one

of the key ways in which CSD manufacturers are attempting to cater to

the broadening taste palate of consumers and also keep consumers

engaged.

o As an example, PURA, a Carbonated Soft Drinks company, currently

offers consumers an alternative CSD product range that is enriched with

exotic flavours such as juniper, cranberry, cucumber and lime, and seville

orange, amongst others.

o Another example is Barker & Quin, a Paarl-based premium tonic producer

in the Western Cape, who are currently are also offering consumers

innovative beverage flavours, particularly in terms of their Indian Tonic.

For example, the ingredients of their Finest Indian Tonic Water include

natural quinine, citrus fruit extracts, and Indian spices like cardamom and

star anise.

o Due to the popularity of these new flavour innovations, it is expected that

more soft drink manufacturers will capitalise on this trend by developing

new and innovative flavour profiles in order to cater for consumer

preferences and ultimately drive sales.

SAMPLE FROM REPORT SA CARBONATED SOFT DRINKS INDUSTRY: SA INDUSTRY DRIVERS

Source: Euromonitor; PURA; B&Q

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Established in 1886, the Coca-Cola Company is a multi-

faceted manufacturer and distributor of concentrates,

syrups, and beverages globally.

o Coca-Cola entered the South African market 90 years ago, with the first

Coca-Cola product sold in Cape Town in 1928.

o Coca-Cola’s core business includes the manufacturing and selling of

concentrates, beverage bases, and syrups to bottling operations, as well

as owning brands and being responsible for consumer brand initiatives.

o The company is operational by means of multiple local channels and has

approximately 225 bottling partners spread across the world. The bottling

partners manufacture, package, merchandise, and distribute the branded

beverages to customers and vending partners, where it is in turn then sold

to customers.

o In addition, Coca-Cola beverages are distributed to more than 200

countries and reaches approximately 27 million customer outlets, resulting

in more or less 1.9 billion servings sold on a daily basis.

o The Coca-Cola Company has more than 500 brands and its beverage

portfolios consists of a wide variety of products including sports drinks,

enhanced water, ready-to-drink coffee, and Carbonated Soft Drinks,

amongst others.

o Of particular interest is their extensive range of Carbonated Soft Drinks

brands and products including Appletiser, Fanta, Schweppes, and Sprite,

amongst others.

COCA-COLA’S CARBONATED SOFT DRINK BRANDS/PRODUCTS:

• Appletiser

• Coca-Cola

• Fanta

• Schweppes

• Sparletta

• Sprite

• Stoney

• Tab

• Twist

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SAMPLE FROM REPORTSA MANUFACTURER & DISTRIBUTOR OVERVIEW: COCA-COLA

Source: C-C; C-C 1; C-C 2; CCBSA ; C-C-SA; C-C-3; Logo

Pepsi is one of the most well-known Carbonated Soft Drink

brands globally, as well as in South Africa. Their signature

blue, red, and white colours feature in all marketing material

and the company often makes use of professional athletes to

advertise their products.

o From Pepsi’s social media platforms, it is evident that they are involved in

events for younger audiences and that they regularly launch competitions

and promotions on their social media platforms such as Facebook.

o In January 2020, Pepsi also launched a new tagline ‘That’s What I Like’ –

the first new tagline in twenty years. This new tagline is part of Pepsi's

efforts to define themselves not as oppositions to other cola drinkers, but

rather as its own brand for people who are comfortable with themselves

and do not worry about how they are perceived by others.

o In October 2019 Pepsi launched its ‘Pepsi Million Buck Sip’ promotion to

promote the Pepsi Max brand. Participants had the opportunity to stand a

chance to win R1,000,000.

o To enter, participants had to purchase a Pepsi Max and film or photograph

themselves taking a sip and saying “This Pepsi MAX tastes like a Million

Bucks” and upload the video or photo to social media using the hashtag

#PepsiMillionBuckSip.

o Moreover, this promotion also included numerous Pepsi Max stalls at

various events around South Africa over October and December 2020, to

encourage people to participate in this competition.

2020 | 10Source: PepsiArticle1; PepsiArticle2; PepsiArticle3; PepsiPressRelease; PepsieFB 1; PepsiFB 2; PepsiFacebookEvents; Instagram; Twitter

Pepsi’s Social Media Following – w/c 3 February 2020

55,445 2,748 10,900 N/A

SAMPLE FROM REPORTSA MANUFACTURER & DISTRIBUTOR OVERVIEW: PEPSI MARKETING

BRAND AND SIZE

Coca-Cola

300ml R9.99 R10.99 R9.99 R8.91 R9.99 R9.99 R9.99 R10.49

2L R21.99 R21.99R19.99

(Special)R21.65 R21.99 R21.99 R22.49 R22.49

Coca-Cola Light

300ml R9.99 R10.99 R9.99 R7.32 R9.99 R9.99 R9.99 R10.49

2.25L R17.99 R18.99 R19.99 R18.45R16.99

(Special) R17.99 R19.99 R21.00

Coca-Cola

No Sugar

300ml R9.99 R10.99 R9.99 R7.32 R9.99 R9.99 R9.99 R10.49

1L R12.99 R13.99 R14.99 R12.95 R13.99 R14.99 R12.99 R14.99

Coo-ee Cola 2L N/A N/A N/A R9.95 R11.49 N/A N/A N/A

Pepsi

330ml R5.99 N/A R6.99 R5.20 N/A R5.99 R5.49 N/A

2L R18.99 R18.99 R17.99 R14.95 R18.99 R18.99 R18.99 N/A

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SAMPLE FROM REPORTSA CARBONADTED SOFT DRINK PRICING ANALYSIS: COLA CARBONATES

This pricing analysis was conducted at retail stores and supermarkets during w/c 27January 2020.

Image Source 2020 | 12

EXECUTIVE SUMMARY (3 Pages)

Global Industry Snapshot

SA Industry Snapshot

SA Industry Drivers and Restraints

1. GLOBAL CARBONATED SOFT DRINKS INDUSTRY (17 Pages)

1.1 Global Overview: VALUE OF GLOBAL CARBONATED SOFT DRINKS MARKET: 2020* & 2023* (IN US$ BILLION) (Graph)

1.2 Global Market Environment

1.3 Global Industry Imports: VALUE OF GLOBAL CATEGORY IMPORTS: 2015-2018* (IN US$ BILLION); TOP 6 CATEGORY IMPORTING COUNTRIES: 2018* (IN US$ MILLION) (Graphs)

1.4 Global Industry Exports: VALUE OF GLOBAL CATEGORY EXPORTS: 2015-2018* (IN US$ BILLION); TOP 6 CATEGORY EXPORTING COUNTRIES: 2018* (IN US$ MILLION) (Graphs)

1.5 Global Key Markets: Regional Overview: GLOBAL CARBONATED SOFT DRINKS OFF-TRADE RETAIL SALES, BY REGION: 2019 (IN MILLION LITRES) (Graph)

1.6 Global Key Markets: Latin America: THE COCA-COLA COMPANY’S NET OPERATING REVENUES WORLDWIDE: 2014-2018 (IN US$ BILLION) (Graph)

1.7 Global Key Markets: North America

1.8 Global Key Markets: Asia-Pacific

1.9 Global Key Markets: Europe: REVENUE IN THE CSD SEGMENT (AT HOME): 2019-2023 (IN US$ MILLION) (Graph)

1.10 Global Key Markets: Middle East and Africa

1.11 Global Industry Trends

1.12 Global Industry Drivers

1.13 Global Industry Challenges

TABLE OF CONTENTS

Image Source 2020 | 13

TABLE OF CONTENTS

2. SOUTH AFRICAN CARBONATED SOFT DRINKS INDUSTRY (27 Pages)

2.1 South African Industry Overview

2.2 South African Market Environment

2.3 South African Industry Trade: VALUE OF SOUTH AFRICAN IMPORTS: 2014-2018 (IN ZAR MILLIONS); VALUE OF SOUTH AFRICAN EXPORTS: 2014-2018 (IN ZAR MILLIONS)

(Graphs)

2.4 South African Industry Market: South African Carbonates Market Definitions

2.5 South African Industry Market: South African Carbonates Distribution Channels Definitions

2.6 South African Industry Market Size: Carbonates Market (2014-2019): VALUE OF SA CARBONATES MARKET: 2014-2019 (IN ZAR BILLION) (Graph); SA CARBONATES

MARKET CAGR AND TOTAL GROWH (IN PERCENTAGES) (Table)

2.7 South African Industry Market Size: Carbonates Market (2014-2019: By Category): VALUE OF SA CARBONATES MARKET BY CATEGORY: 2014-2019 (IN ZAR BILLION)

(Graph)

2.8 South African Industry Market Size: Cola Carbonates Market (2014-2019: By Category): VALUE OF SA COLA CARBONATES MARKET BY CATEGORY: 2014-2019 (IN

ZAR BILLION) (Graph)

2.9 South African Industry Market Size: Non-Cola Carbonates Market (2014-2019: By Category): VALUE OF SA NON-COLA CARBONATES MARKET BY CATEGORY: 2014-

2019 (IN ZAR BILLION) (Graph)

2.10 South African Industry Market Size Forecast: Carbonates Market (2020*-2024*): VALUE OF SA CARBONATES MARKET: 2019 & 2024* (IN ZAR BILLION) (Graph); SA

CARBONATES MARKET VALUE FORECAST BY CATEGORY (IN ZAR MILLIONS) (Table)

2.11 South African Industry Market Volumes: Carbonates Market (2014-2024*): RETAIL VOLUME OF SA CARBONATES MARKET (2014-2024*) (Table)

2.12 South African Industry Market Distribution: Carbonates Market: CHANNEL DISTRIBUTION FOR CARBONATES PRODUCTS: 2019 (IN PERCENTAGE) (Graph); CHANNEL

DISTRIBUTION (2014 AND 2019) BY OUTLET TYPE (Table)

2.13 South African Industry Trends

2.14 South African Industry Drivers

2.15 South African Industry Challenges

Image Source 2020 | 14

TABLE OF CONTENTS

3. SOUTH AFRICAN CARBONATED SOFT DRINKS MANUFACTURER & DISTRIBUTOR OVERVIEW (34 Pages)

3.1 Chill Beverages: Overview & Carbonated Soft Drink Brands/Products

3.2 Chill Beverages: Marketing: Bashew’s

3.3 Chill Beverages: Marketing: Fitch & Leedes

3.4 Coca-Cola: Overview

3.5 Coca-Cola: Financial Performance: COCA-COLA’S FINANCIAL RESULTS (IN US$ MILLION) (Table); COCA-COLA NET OPERATING REVENUE BY GEOGRAPHICAL AREA FOR

THREE MONTHS ENDED 27 SEPTEMBER 2019 (IN US$ MILLION) (Graph)

3.6 Coca-Cola: Carbonated Soft Drink Brands/Products

3.7 Coca-Cola: Marketing: Appletiser

3.8 Coca-Cola: Marketing: Coca-Cola

3.9 Coca-Cola: Marketing: Fanta & Sprite

3.10 Coca-Cola: Marketing: Schweppes

3.11 Kingsley Beverages: Overview

3.12 Kingsley Beverages: Carbonated Soft Drink Brands/Products

3.13 Pioneer Foods: Overview

3.14 Pioneer Foods: Financial Performance: PIONEER FOODS’ FINANCIAL RESULTS (IN ZAR MILLIONS) (Table); REVENUE FOR PIONEER FOODS SEGMENTED BY DIVISION

FOR SIX MONTH ENDED 31 MARCH 2019 (IN ZAR BILLION) (Graph)

3.15 Pioneer Foods: Carbonated Soft Drink Brands/Products

Image Source

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TABLE OF CONTENTS

3. SOUTH AFRICAN CARBONATED SOFT DRINKS MANUFACTURER/DISTRIBUTOR OVERVIEW (CONTINUED) (34 Pages)

3.16 The Beverage Company: Overview

3.17 The Beverage Company: Carbonated Soft Drink Brands/Products

3.18 The Beverage Company: Marketing: Coo-ee

3.19 The Beverage Company: Marketing: JIVE & Refreshhh

3.20 The Beverage Company: Marketing: Pepsi

3.21 Tiger Brands: Overview

3.22 Tiger Brands: Financial Performance: TIGER BRANDS’ FINANCIAL RESULTS (IN ZAR MILLIONS) (Table); REVENUE FOR TIGER BRANDS’ CONSUMER BRANDS – FOOD

SEGMENTED BY BUSINESS FOR THE YEAR ENDED 30 SEPTEMBER 2019 (IN ZAR BILLION) (Graph)

3.23 Tiger Brands: Carbonated Soft Drink Brands/Products

3.24 Tiger Brands: Marketing: Rose’s

3.25 Twizza: Overview & Carbonated Soft Drink Brands/Products

3.26 Twizza: Marketing: Twizza

3.27 Soda King: Overview

3.28 Soda King: Carbonated Soft Drink Brands/Products

3.29 Carbonated Soft Drink Manufacturers & Distributors: Other

Image Source 2020 | 16

TABLE OF CONTENTS

4. SOUTH AFRICAN CARBONATED SOFT DRINKS RETAIL & PRICING ANALYSIS (22 Pages)

4.1 SOUTH AFRICAN CARBONATED SOFT DRINKS RETAIL ANALYSIS (8 Pages)

4.1.1 South African Retail Overview

4.1.2 Checkers: Overview

4.1.3 Food Lover’s Market: Overview

4.1.4 Massmart: Overview: MASSMART SALES BY DIVISION FOR THE 26 WEEKS ENDED 30 JUNE 2019 (IN ZAR BILLION) (Graph)

4.1.5 Pick n Pay: Overview: PICK N PAY TURNOVER FOR 26 WEEK ENDED 1 SEPTEMBER 2019 (IN ZAR BILLION) (Graph)

4.1.6 Shoprite: Overview: SHOPRITE GROUP TURNOVER FOR YEAR ENDED 30 SEPTEMBER 2019 (IN ZAR BILLION) (Graph)

4.1.7 Spar: Overview: SPAR GROUP TURNOVER FOR YEAR ENDED 30 SEPTEMBER 2019 (IN ZAR BILLION) (Graph)

4.1.8 Woolworths: Overview: WOOLWORTHS HOLDING LIMITED TURNOVER AND CONCESSIONAL SALES FOR THE 52 WEEKS ENDED 30 JUNE 2019 (IN ZAR BILLIONS) (Graph)

4.2 SOUTH AFRICAN CARBONATED SOFT DRINK CONVENIENCE STORE ANALYSIS (7 Pages)

4.2.1 Bonjour, La Boutique & Thrupps (Total): Overview

4.2.2 BP Express & Pick n Pay Express (BP): Overview

4.2.3 Freshstop (Caltex): Overview

4.2.4 Quickshop & Woolworths Foodstop (Engen): Overview

4.2.5 Sasol Delight (Sasol): Overview

4.2.6 Shell Select & Spar Express (Shell): Overview

4.2.7 Convenience Stores: Promotions

Image Source2020 | 17

TABLE OF CONTENTS

4.3 SOUTH AFRICAN CARBONATED SOFT DRINKS PRICING ANALYSIS (7 Pages)

4.3.1 South African Carbonated Soft Drinks Pricing Analysis: Cola Carbonates: Coca-Cola, Coca-Cola Light, Coca-Cola No Sugar, Coo-ee Cola, Pepsi, Pepsi Light,

Pepsi Max, Private Label, Refreshhh Cola, Tab, Twizza Cola– Comparative pricing at Checkers, Food Lover’s Market, Game, Makro, Pick n Pay, Shoprite, Spar

and Woolworths

4.3.2 South African Carbonated Soft Drinks Pricing Analysis: Non-Cola Carbonates: 7-up, 7-up Sugar Free, Appletiser, Barker and Quin, Cappy Tropical Fruit Juice,

Coo-ee Raspberry, Double Dutch Premium Mixer, Fanta Orange, Fever-Tree Tonic Water, Fitch & Leedes Indian Tonic, Grapetiser, Spar-letta Iron Brew, JIVE,

Liqui-Fruit, Mirinda, Monis Sparkling Fruit Juice, Mountain Dew, Private Label, PURA Soda, Refreshhh Lemonade, Rose’s Lime & Lemonade, Sanpellegrino

Anciata Rossa, Schweppes Lemonade, Spar-letta Cream Soda, Sprite, Sprite Zero, Stoney Extra Kwetsa, Twist Lemon, Twizza – Comparative pricing at

Checkers, Food Lover’s Market, Game, Makro, Pick n Pay, Shoprite, Spar and Woolworths

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