SABMiller Reports Emerging Market Growth In First QuarterJuly 21, 2011
SABMiller, the world’s second-largest brewer, reported a 7% jump in revenue at constant currency for its first quarter ended June 30, 2011, as beer and soft drinks volumes rose 5%. Growth was attributed primarily to strong performances in several emerging markets, as well as a relatively weak comparative quarter in the year prior.
Despite a 13% volume loss in India—due to heightened trading restrictions and high excise taxes—SABMiller’s overall beer volumes in Asia still rose 11%, led by a 14% surge in China, where it co-owns Snow—the world’s largest beer brand—in partnership with China Resources Enterprise. (During the company’s last fiscal year, ended March 31, 2011, China surpassed the U.S. to become SABMiller’s leading market.) Africa’s beer volumes were up 15% as double-digit growth in Tanzania, Uganda, Zambia and Zimbabwe offset stagnant volumes in South Africa. Meanwhile, Europe experienced a 5% jump, led by Russia’s (+11%) overall market improvement, and Latin America recorded 6% growth, bolstered by rising volumes in Peru and Colombia.
In the U.S., however, MillerCoors—SABMiller’s joint venture with Molson Coors—saw first quarter domestic retail sales fall 2.7%, which the company attributed to ongoing economic issues, including high unemployment and fuel costs. Premium light retail sales dropped by the low single digits, as Miller Lite contributed a mid-single digit decline. Coors Light, however, eked out slight growth, and the company’s craft and imports division, Tenth and Blake, continued to experience double-digit gains due to the rising popularity of its Blue Moon, Peroni and Leinenkugel’s brands.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.
Tagged : beer, craft beer, MillerCoors, SABMiller
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