SABMiller toasts emerging markets

SABMiller has reported a recovery in beer sales during the summer, thanks to strong growth in emerging markets including Africa and Asia.

The owner of the Peroni, Miller Lite and Grolsch brands said double-digit gains in volume sales in countries including South Africa and China offset a weaker performance in Europe and North America and helped the group meet forecasts for the six months to 30 September.

Total lager volumes rose by 1%, but Africa and Asia posted gains of 11% and 10% respectively.

In the US, where the group formed the Miller-Coors joint venture in July 2008, lager sales dropped 4% in the second quarter due to economic uncertainty and high levels of unemployment. Europe witnessed a fall of 5% in the same period.

Overall beer volume growth, price rises, a drop in the prices of raw materials and the strengthening of currencies against the US dollar helped SABMiller to meet its own financial expectations.

The brewer, which earns over 80% of its profits in emerging markets, has recently been linked with a takeover of the beer operations of Foster’s Group or the African beer business of France’s Castel.

Earlier this month, an industry report predicted that world beer consumption is expected to grow by between 1 and 1.5% during 2010 after only marginal growth in 2009, with Asia and Africa the fastest expanding markets but Europe continuing to register falls in sales.

Alan Lodge, 20.10.2010