SAB WC volumes ahead of expectations

SAB said its sales volumes for the five week FIFA World Cup period came in slightly ahead of the original sales estimate of 100 000 hectoliters. SAB sold an additional 130 000 hectoliters, which equates to 44-million x 340ml beers. This was over and above normal consumption during the June/July period.

The increased sales took place across SAB's portfolio of products, with Castle Lager and Castle Lite proving to be particularly popular with consumers along with Hansa and Carling Black Label. Of the international premium brands, Grolsch, Millers and Peroni resonated well with foreign visitors as well as local supporters, with the draught offering being particularly popular.

"This extra volume will support SAB's financial results for the first quarter of 2010, which were otherwise restrained by Easter timing and the cold weather," SAB said.

Objectives

SAB added that it had two key objectives - to contribute to South Africa hosting one of the best FIFA World Cups ever and to help build national unity and rally South Africans behind the national team, Bafana Bafana.

"SAB believes it has achieved these objectives, having worked closely with retailers to ensure that no fans went thirsty and demand was fully met," it said.

In addition, SAB invested in building national unity and pride through several Castle Lager campaigns and marketing in support of the FIFA World Cup, and left a lasting legacy for South Africans by investing in infrastructure in SA's townships.

SAB was the founding sponsor of professional soccer in South Africa and has been committed to South African football for 50 years. SAB has sponsored Bafana Bafana since 1992 and has been an integral contributor to the three World Cup bids that eventually brought the tournament home to Africa.

SAB MD Norman Adami said the tournament was a great demonstration of what South Africans can accomplish when they pull together.

"South Africans united to make the FIFA World Cup a world class event and a true spectacle, and we are proud of the role that we as SAB played in achieving this," he said.

"While this was an opportunity to sell beer, for SAB it was much more about making a contribution to South Africa in terms of demonstrating that we could be a world class host."

Event investment

Adami added SAB implemented a detailed plan to ensure that the country was well stocked and supplied. He added SAB recognised the magnitude of the opportunity that the World Cup presented for the country, and decided to make a substantial contribution to the event, despite the fact that the company was not an official sponsor of the tournament.

This resulted in SAB investing an estimated R170 million in the World Cup.

One of the key initiatives which will have long-term benefits for the country was an investment of over R40 million in the "Castle Kingdoms" initiative. More than 550 taverns and bars in 42 townships have been transformed via an infrastructure upgrade into bright, inviting and rejuvenated soccer themed venues, which will leave a lasting legacy, he added.