World Cup confusion continues

SAB's Castle to muscle in on Bud?

101 days to go, and beer supply still in doubt

The confusion over beer supply to the football World Cup’s official fan zones in South Africa is continuing, with SABMiller’s division in the country declining to comment on ongoing discussions with organisers today.

The issue was thrown in doubt last month when A-B InBev - maker of Budweiser, the ‘official beer’ of the tournament – said it had insufficient capacity to supply the fan zones. The brewer, which has exclusive pouring rights inside all host stadiums, also confirmed it will import Bud for the event.

“South African Breweries [SAB] is talking to Fifa regarding the supply of beer to the World Cup fan zones, but no agreement has been reached so we’re not at liberty to comment on the details of these discussions,” said a SAB spokeswoman.

A spokesman for Heineken said today that Brandhouse – the Dutch firm’s South African joint venture with Diageo and Namibia Breweries and brewer of Amstel in the country - is not seeking a supply deal for the fan zones.

One source close to the issue in South Africa told BG today that with 101 days to go before the start of the tournament, “It’s shocking that things are so unorganised in regards to beer rights”.

They added: “Budweiser pulling out has sown a lot of confusion in the market. There’s probably still a good opportunity for someone to go to one or more of the host cites and provide, as SAB might have a hard time on this because of the short notice.”

SAB has an approximately 90% slice of the South African beer market, though the firm’s share has been eroded since Heineken won back the rights for Amstel in the country in 2007. Last year Brandhouse opened the doors of a new, 3 million-hl plant near Johannesburg.