SANDTON, SOUTH AFRICA - Brewer SABMiller plans to focus more heavily on flavoured alcohol, bottled water and energy drinks in its core South African market as beer sales slow.

The company enjoys a 98% market share in the country but sales volume grew just one per cent for the 2006 financial year, compared with four per cent a year earlier.

Tony van Kralingen, MD of SABMiller's SA beverages operations, says the brewer has been less creative than some of its competitors in the flavoured alcohol market and needs to "re-innovate" to capture greater market share.