From Barley To Beer

SAB Miller has played an important role in developing barley production in South Africa. However, in the wake of the AB InBev takeover, will the focus shift?

- Jana Jacobs

South Africa’s beer market, in terms of both volume and value, is larger than all other alcohol categories combined. In an article on liquor consumption trends published by SA Wine Industry Information and Systems, consultant Elias Holtzkamp put SA’s consumption of beer at 3 100 000bn litres in 2015, with beer sales totalling R52.7bn. In total, 77.7% of all alcohol consumed in 2015 was beer – while it accounts for 54.6% of the market share in terms of value, according to the findings.

Stalwart SABMiller – now part of international giant AB InBev – has dominated this lucrative local industry. It is the largest producer of beer products in SA; the Newlands Brewery in Cape Town alone produces 4.5 hectolitres of beer per annum.

One of the key ingredients in beer is malted barley. SABMiller is a huge participant in the malted barley market and has played an important role in developing the industry in SA.

Making malt

Instrumental to the development and growth of the local barley industry is the South African Barley Breeding Institute (Sabbi), a joint venture of SABMiller/AB InBev that conducts extensive research and development to breeding new varieties of barley that will offer better yields, are more sustainable and are of a better quality.