BEER BOOMING IN AFRICA

SO WHERE’S the next big beer market? The answer may surprise you: Africa. Rapid economic development, expanding populations and rising wages will make Africa the fastest growing continent for beer, according to financial services company Rabobank. The report BEER ON THE FRONTIER: OPPORTUNITIES FOR BREWERS IN THE AFRICAN CONTINENT states that because developed economies are still dealing with the fallout of the economic slowdown, and growth in the BRICs (Brazil, Russia, India, and China) has slowed, brewers have turned to Africa. Francois Sonneville, a Rabobank analyst, said: “Over the past few years, brewers from mature, stagnating beer markets have been investing in emerging markets. The favorite destinations have been the BRICs and Asia, but these countries mature growth rates are declining. Based on demographics and economic developments, we believe that Africa will be the continent to witness the fastest growth over the next five years.” Rabobank said Africa is expected to see the largest increase of legal drinkers between 2O13 and 2O18, while the birth rate in Latin America and Asia will slow. Western Europe and North America have seen a historical decline in beer volumes. Increases in wages in emerging markets have a significantly greater effect on the spending pattern for beer than they do in mature markets, the report found, giving the example that in Tanzania it takes the average worker just over five hours of labor to earn a beer, while in the US it takes just 15 minutes.