SABMiller sees signs of a recovery

SABMiller’s beer volumes have been hit by the global downturn while its move to raise prices to cover commodity cost hikes further dampened growth, but falling barley costs and a slow recovery should help the group recover in the second half of 2010.

The world’s number two brewer, which produces Castle, Snow, and Pilsner Urquell beers, said annual underlying volumes rose 3 percent in Latin America, 6 percent in Africa, and 7 percent in Asia, but fell 5 percent in Europe and dipped 1 percent in South Africa.

Reporting on individual markets in Europe, SABMiller said that the decline reflects the continued weak economic environment, as well as substantial increases in excise taxes in a number of its markets. In Poland, SABMiller grew market share in a declining market although volumes were down 3 percent.

In Romania, SABMiller took market share leadership during the year but organic volumes were down 13 percent. Volumes in Russia declined 5 percent organically although it held market share and, in the Czech Republic, domestic volumes dropped 5 percent because of the decline in on-premise sales.

In the United States, where SABMiller formed the MillerCoors joint venture in July 2008, sales to retailers fell 2.3 percent with a 4 percent fall in the fourth quarter.

SABMiller reports its results for its full year to end-March on 20 May 2010.