SABMiller’s third quarter lager volumes rose 7 percent in Africa
Depending on the market, SABMiller’s lager volumes are up, down or about the same. In Latin America, says SABMiller, lager volumes grew by 4 percent in the quarter.
In Colombia they grew by 6 percent benefiting from good weather, an increase in consumer disposable income and strong operational execution.
In Europe, on the other hand, third quarter lager volumes declined 2 percent on an organic basis. Organic volumes in Russia grew a remarkable 34 percent, but this was due to significant consumer purchases ahead of a substantial excise increase in January.
In the U.S., MillerCoors’ domestic sales to retailers were down 3.6 percent against the prior year in the quarter, amidst a challenging industry and economic environment.
In Africa, fortunately, lager volumes rose 7 percent on an organic basis as did soft drink volumes.
Lager volumes in Zambia were up 17 percent compared with the same quarter a year earlier, assisted by an excise reduction in March 2009. Mozambique’s lager volumes grew 11 percent, aided by a resilient economy and strong growth in the northern region supported by the commissioning of a new brewery in Nampula.
SABMiller said that in Angola, where SABMiller operates independently of its associate Castel, lager volumes grew 17 percent, assisted by additional capacity.
Castel’s businesses too enjoyed a robust performance across the region with lager volumes up 13 percent.
Yet, lager volumes in Botswana were down 29 percent, with some reduction in the rate of decline as the social levy imposed in November 2008 was cycled, although sales continued to be hampered by a weak economy.
Despite holding market share, volumes in Tanzania declined 8 percent, impacted by unseasonal weather and a soft economy.
In South Africa, lager volumes declined 4 percent in the quarter as the country continued to experience a softening of consumer demand. What is more, SABMiller admitted to having lost some market share too to Heineken though the brewer would not say how many percentage points.
In Asia, SABMiller reported lager volumes growth of 5 percent on an organic basis.
Organic volume growth in China slowed to 6 percent as heavy snow and wet weather suppressed demand across the country.
Last year, SABMiller begun a four-year programme to reduce costs and simplify its business. Finance, human resources and procurement will be streamlined globally, with some functions outsourced. The programme is costing USD 370 million in the first year, with costs lowering 40 percent each year until 2013. By 2014, the company expects to be saving USD 300 million each year.
