1. 28 NOVEMBER 2013 Alcohol advertising tends: 1997 - 2013 Alcohol advertising tends: 1997 - 2013 Corne van Walbeek and Michael Daly

2. Data Commercial data, “adspend’ collected by AC Nielsen AC Nielsen personnel monitor all forms of media Cost of each advertisement estimated as a function of media, placement, size, duration etc… Data is available monthly from January 1997 – September 2013 (Internet: Jan 2001 - ) Oct – Dec 2013, estimated using proportional contribution of those months in previous years All data in December 2012 Rands

3. Total advertising industry: *2013 Figures include estimates for Oct – Dec 2013 *All figures are constant 2012 prices

4. Media composition of alcohol advertising *2013 Figures are estimated for Oct – Dec

5. Relative importance of alcohol advertising

6. Relative share of alcohol categories in total alcohol advertising expenditure

7. Relative importance of media to alcohol adspend

8. Key advertisers in 2012 (based on ‘adspend’)

9. Concentration: Beer 1997 2012

10. Concentration: Wine 1997 2012

11. Key Brands: Spirits (2012) 1997

12. Shares of different alcohol categories in television advertising expenditure

13. Shares of different alcohol categories in radio advertising expenditure

14. Shares of different alcohol categories in print advertising expenditure

15. Shares of different alcohol categories in out-of-home advertising expenditure

16. Top ten advertised brands of the three largest alcohol companies in South Africa SABMiller brands Average annual advertising expenditure as percentage of total SABMiller advertising expenditure 2009-2012Brandhouse brands Average annual advertising expenditure as percentage of total Brandhouse advertising expenditure 2009-2012Distell brands Average annual advertising expenditure as percentage of total Distell advertising expenditure 2009-2012 Carling Black Label21.1%Amstel Lager13.9%Hunters Dry Cider12.8% Hansa Pilsener19.2%Heineken Lager13.8%Savannah Dry Cider9.5% Castle Lite18.3%Windhoek Lager8.9% Richelieu Brandy 7.1% Castle Lager17.2%Bells Whisky8.2%Amarula Cream Liqueur6.0% Castle Milk Stout7.3%J & B Whisky8.0%Three Ships Whisky5.4% Redds Cider6.8% Captain Morgan Spiced Gold Rum 5.5%Klipdrift Premium Brandy5.0% Castle Draught4.6%Johnnie Walker Black Label5.4% Flight of the Fish Eagle Brandy 4.3% Miller Draft Beer*2.3%Strongbow Cider4.6%Klipdrift Export Brandy4.3% Brutal Fruit0.8%Guinness Beer3.7%JC Le Roux Sparkling Wines4.0% Peroni Nastro Azzurro0.6%Smirnoff Vodka**3.5%Oude Meester Brandy3.8% Other1.8%Other24.5%Other37.8%

17. Television advertising by ‘Advertiser’ over time

18. Radio advertising by ‘Advertiser’ over time

19. Share of total television advertising by category

20. Sponsorship Deals with the advertisement of sponsorship activities Carling Cup, J&B Met etc…

21. Total expenditure on sponsorship advertising by all industries

22. Sponsorship advertising by the alcohol industry, by media

23. MARKET CONCENTRATION ANALYSIS Advertiser Advertising expenditure (R 000's)Market ShareMarket Share Squared SABMiller622033.4079.270%0.628371 Brandhouse151931.7619.362%0.037487 Bavaria Brau7054.550.899%0.000081 United National Breweries3506.500.447%0.000020 Brauerei Beck & Co61.490.008%0.000000 Awethu Breweries59.010.008%0.000000 Cockpit Brewery24.490.003%0.000000 Central TLV Dev Board24.100.003%0.000000 Coopers SA Ltd8.300.001%0.000000 Total advertising expenditure784703.59 Herfindahl-Hirschman index0.666

24. Herfindahl-Hirschman indices by alcohol type 19972012 Beer0.890.67 Brandy0.340.61 Cider0.360.50 Wine0.36 Ready to Drink0.320.27 Liqueur0.160.33 Whisky0.130.26

25. Herfindahl-Hirschman indices for beer at the “house” and brand level, 1997-2012

26. Herfindahl-Hirschman indices for wine at the “house” and brand level, 1997-2012

27. Comparison to Tobacco: share of tobacco advertising in aggregate advertising expenditure,

28. Main Findings Alcohol makes a modest contribution to total advertising  Television: 7-8%  Cinema 8-16%  Internet 1.6–2%  Out of Home 4-7%  Print 0.7-1%  Radio 2-3% Television is increasingly important media to alcohol industry Very sharp increase in television advertising in late 2009 (especially for beer) Seasonality & pulsing: Alcohol advertising peaks in November

29. Main Findings Large increase in advertising of sponsorships since 2010 Sponsorship advertising is primarily on television The alcohol advertising industry is highly concentrated (Particularly for beer and brandy)