SABMiller hurt by bad weather in China
And we thought the sun would always shine on China beer (metaphorically speaking). But see what a spell of bad weather can do to a brewer that has a national market share of approximately 24 percent and operates 95 breweries across the country.
SABMiller on 21 January 2015 reported a 1 percent drop in lager volume in the third quarter of its financial year (ended December 2014), hit by continued weakness in China because of bad weather and lower U.S. sales. Fortunately, its soft drink volumes continued to expand, rising 4 percent.
The maker of beers such as Miller Lite and Peroni, and part owner of the top-selling beer in China, said its “net producer revenue” for the three months grew 4 percent at constant currency rates. However, the figure declined by 5 percent at actual rates as it was hit by adverse currency movements.
In China, net producer revenue fell 7 percent as volume fell 9 percent, with double-digit declines in the northeast and central provinces.
Revenue rose 5 percent in Latin America, 7 percent in Africa and 3 percent in Europe. It fell 2 percent in Asia Pacific and 1 percent in North America.
In North America, the decline in revenues was partially offset by price increases and a shift toward selling more higher-priced beers. American drinkers have been moving away from the mainstream light beers such as Miller Lite and Coors Light.
During the quarter, Latin America volumes increased 2 percent and African volumes 4 percent. European volume growth was 2 percent, while North American volumes were down 3 percent, it was reported.
