SABMiller reveals lager growth in Africa and Asia

19 October, 2010

SABMiller has recorded double-digit lager sales growth in its African and Asian markets

The trading results for the group that owns Miller, Peroni and Grolsch pertain to the first six-months of the financial year.

In Africa - a region that is home to 16 SABMiller breweries – volume grew by 11% - results, according to the group, that were aided by the stabilisation of Zimbabwe’s economy.

Within the region, SABMiller ascribed Uganda’s 23% increase in volume to the introduction of an expanded portfolio; the 15% rise in Zambia to an excise reduction; and Mozambique’s 10% growth to ‘additional capacity’ and increased ‘premium brand performance’.

South Africa, an independent market to Africa, saw volume rise 3% thanks to the 2010 FIFA World Cup.

In Asia volume increased by 10%, largely because of the investment in sales and marketing in China that lead to a 9% rise. India’s results were mixed throughout the period.

The group recorded 5% negative growth in Europe – a manifestation of what the group termed ‘weak economic conditions across the region’.

Notable drops in the region came in the form of Romania, which saw down-trading of 11%, following government-introduced austerity measures.

Czech Republic - home to SABMiller brand Pilsner Urquell – was impacted by ‘weakness in the on-premise sector, down-trading and excise increases’, resulting in a drop of 9%.

While the Polish market saw down-trading of SABMiller lager brands by 6%, a trend the group attributed to increased competition.

Elsewhere in the world, Latin America’s lager volume was marginally down overall, with a drop of 7% recorded in Colombia and sales growth of 11% and 4% in Peru and Ecuador respectively.

Lager volume across all SABMiller markets grew by 1% for the first six months compared to the previous year.

Trading results are based on organic growth so do not include the effects of acquisitions and disposals on volume





Comment

Christian Davis

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