SABMiller Reports Strong Growth in Emerging Markets as European Sales Slump
Europe's lager volumes were down 2%. However sales were strong in the emerging markets where SABMiller now makes 70% of its profits. Lager volumes in Africa grew by 11% and by 8% in Latin America.
Jan 19 2012 --- SABMiller announced today that sales of their lager were up by 3% from the previous year. This was fuelled by strong growth in emerging markets around the world.
The company, which is the world’s second largest brewer and producer of beverages such as Peroni, Milller Lite and Grolsch, did not perform well in Europe and North America, and saw a decline in sales.
Europe's lager volumes were down 2%. Beer markets in Europe remain affected by intense competition. American beer sales under its MillerCoor division were down 3.3%
Sales of the company’s recently acquired Australian Foster’s brand were down by 6%, further illustrating the current difficulties in a saturated market.
However sales were strong in the emerging markets where SABMiller now makes 70% of its profits. Lager volumes in Africa grew by 11% and by 8% in Latin America.
China's volumes were up 11% and in India volumes were up 21%.
The company will attempt to consolidate its strong growth in emerging markets by continuing to make deals with strong regional beer businesses. The group plans to transfer its Russian and Ukranian beer businesses to Anadolu Efes to form an enlarged group that will be the vehicle for investment in Central Asia and the Middle East.
Attention is now turning to the other major brewing companies whose businesses are more focused on Western markets and therefore more exposed to the sluggish sales growth in those areas . Other big brewers report the Oct-Dec quarter and 2011 results over the coming weeks with Heineken due to issue results on Feb 15, Carlsberg on Feb 20 and the world's largest beermaker AB-InBev on March 8.
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