{"id":145925,"date":"2016-12-06T12:50:11","date_gmt":"2016-12-06T10:50:11","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=145925"},"modified":"2016-12-06T12:50:11","modified_gmt":"2016-12-06T10:50:11","slug":"how-much-it-costs-to-open-a-craft-brewery-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/145925\/how-much-it-costs-to-open-a-craft-brewery-in-south-africa\/","title":{"rendered":"How much it costs to open a craft brewery in South Africa"},"content":{"rendered":"

The craft beer revolution has swept across South Africa over the past several years – generating enough business for one of the world’s largest beer makers South African Breweries (SAB) to sit up an take notice.<\/p>\n

In 2014, the JSE-listed group entered the craft revolution by announcing that it would be making ales at its No3 Fransen Street Brewery – previously a test brewery for SAB. And several months ago, the beer giant also launched Carver\u2019s Weiss Beer, a German-style Hefeweizen.<\/p>\n

According to craft beer site, CraftBru<\/a>, the number of artisanal beer brewers in South Africa has grown from about 30 in 2013, to a number closer to 200.<\/p>\n

Standard Bank Group forecast that the industry will grow at 35% in 2016. It noted that the top 5 brands in South Africa are Jack Black, CBC, Darling, Boston, Mitchell’s – making up for about 3.7 million litres of the eight million litre market.<\/p>\n

It said that the total premium and lite category in SA is estimated to be about 790 million litres in 2015.<\/p>\n

Read: Beer prices in South Africa vs the world<\/a><\/strong><\/p>\n

Brendan Grundlingh, an executive from Standard Bank’s Global Consumer Sector team warned however, that the local craft beer market is very fragmented and is expected to consolidate.<\/p>\n

“The top 10 craft brands are likely to dominate and take control of the national market. Those on the fringes could fall away due to lack of funding and supply constraints,” he said.<\/p>\n

That however, hasn’t stopped the revolution just yet, with two brewers having opened shop in Jeffreys Bay over the past two months – serving a town with a population of less than 50,000, but with big tourism appeal as a world-renowned surfing spot.<\/p>\n

Brewhaha JBay opened its doors in November, while\u00a0Jeffreys Bay Craft Brewery<\/a> (JBay CB) is expected to open shop in the coming months having announced its six beer brands including Captain Jeffreys and The Oom.<\/p>\n

\"jbaybrewery\"<\/a><\/p>\n

According to the EP Herald<\/a>, citing brewery owner Bruce Tavenor, the project has cost more than R12 million so far. The brewery will include a restaurant.<\/p>\n

One of the more established ‘craft beer’ brands in the country, Darling Brew, last year invested R52 million into building a brewery in order to meet growing local demand. The brewery is a supplier to large chains including Checkers.<\/p>\n

Standard Bank has expressed an interest in assisting businesses to take advantage of the growth opportunities in the booming beer industry – ‘and not wither away as these trends unfold’.<\/p>\n

“We want to support growth and partner with these businesses. We understand the issues in the market and can assist with working capital and funding needs,” said Grundlingh.<\/p>\n

Threats to growth include regulations around labelling, avoiding contamination and lack of adequate promotional activity, Standard Bank warned.<\/p>\n

“There needs to be consistency in the batches or else it starts to isolate consumers. If they have a bad experience they won’t buy again. Not putting the “best before” date on the label can harm the reputation of the brand if consumers have a bad experience,” said Grundlingh.<\/p>\n

Read: These are the 25 best-rated beers in South Africa<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The craft beer revolution has swept across South Africa over the past several years – generating enough business for one of the world’s largest beer makers South African Breweries (SAB) to sit up an take notice.<\/p>\n","protected":false},"author":10,"featured_media":85698,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[26],"class_list":["post-145925","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/145925","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=145925"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/145925\/revisions"}],"predecessor-version":[{"id":145933,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/145925\/revisions\/145933"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/85698"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=145925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=145925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=145925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}