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Sabmiller Buys Into South America

Sabmiller has confirmed it will buy South America’s second largest brewer, Groupo Empresearial Bavaria, for US$7.8 billion. SABMiller, which brews Carling, Peroni and Miller Lite, will gain local brands in Colombia, Ecuador, Peru and Panama, including Pilsener, Cristal, Aguila and Atlas. .

The deal will also give the UK-based brewer exposure to some of the world’s fastestgrowing beer markets. The Andean region is forecast to deliver compound annual beer volume growth of 4% over the next five years. The industry average is 2%.

The new combined group will have annual beer volumes of approximately 175m hectolitres, and revenues of about $12.5bn are forecast, with pre-tax earnings of around $3.5bn. Bavaria, which is 75% controlled by the Santo Domingo family, will own just over 15% of SABMiller.

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