SABMiller reports growth across business
Brewing giant SABMiller today reported earnings growth in all its businesses as the thirst of drinkers for low-carbohydrate beer showed no sign of easing.
Updating investors on trading in the five months to August 31, the world’s second largest brewer said its Miller Lite brand was continuing to grab market share in the US.
Hype around the Atkins diet has helped accelerate a long-term trend of US drinkers switching from premium draught to low-carb lagers, which are considered to be less fattening.
SABMiller said rising demand for Miller Lite had driven sales to US retailers 2% higher during the period to mid-September, offsetting weaker demand for brands such as Miller Genuine Draft and Milwaukee Best.
Miller Lite accounts for around 45% of the volumes of beer sold by the company in the US, but generates nearly 60% of its profits there because it is sold at higher margins.
SABMiller, which includes Pilsner Urquell and Castle among its brands, said volumes of its lager sold around the world increased by more than 4% in the five months to August 31 after stripping out the impact of acquisitions.
Poor weather over summer compared with last year’s heatwave restrained demand for its lagers in Europe, which was up by 3% in the period.
Volumes improved in the key markets of Poland and the Czech Republic, adding to further growth in Russia and Romania.
But sales in Italy were weak, fuelling the concerns of analysts that the company was having problems integrating the Peroni business that it acquired in June last year.
SABMiller has rapidly expanded in Asia and last week bought the Chinese arm of Australian-based brewers Lion Nathan in a deal worth $154m (€125m) including debt.
Analysts expect the group to post pre-tax profits of up to $1.7bn (€1.38bn) for the full year.
Listed on both the London and Johannesburg stock exchanges, SABMiller has 42,000 employees. Outside the US, the company is one of the largest bottlers of Coca-Cola products in the world.
