Life cycle study on returnable glass bottles in the South African beer and cider industry

Abstract

South Africa is ranked as one of the higher beer and cider consumption per capita countries in the world. The internal demand coupled with the growth of emerging markets makes South Africa an attractive investment for international and local brewing companies. In recent years, Heineken N.V, Distell Ltd. and SAB InBev have deployed substantial investments into new plant and equipment to increase their footprint within the country. The market is made up of premium and mass-market products. The sales of mass-market products far outweigh premium products and is thus a strong focal point for alcoholic beverage producers. Mass-market products utilize returnable packaging materials to transport the goods sold. These returnable bottles, kegs, pallets and crates remain assets of the producers and return is incentivized by a deposit system. To maximize profits, producers aim to increase the lifecycle of these returnable packaging materials. The lifecycle of the returnable packaging is dependent on several factors found in the producer's micro-, external- and macro environments. This is further governed by legislation and guided by international best practices and standards, which directly and indirectly impact the lifecycle of the returnable packaging materials. This mini-dissertation will focus on investigating factors associated with the lifecycle of returnable glass bottles used by producers for packaging their finished goods. A research methodology will outline the approach followed in obtaining information which will be used as arguments to support the primary research objectives. A review of current literature will be conducted to determine national and international approaches towards the operational aspects of returnable bottle's lifecycle. The literature review will form the basis of the discussion points during qualitative data collection with experts operating in the South African returnable bottle market. The study will be concluded through analyzing and comparing findings with existing literature elements. Recommendations for will be provided to highlight areas identified for further research. Additionally, recommendations are provided to the industry for consideration in an attempt to increase returnable bottle lifecycles.