Creating and sharing wealth
SABMiller in the year ended 31 March 2004, received over US$11,000 million (excluding associates) in sales from its customers. How that income is used in the business determines our total economic impact. More than half (US$5,700 million) was spent outside the business with suppliers of raw materials, packaging and other goods and services, thereby sustaining many thousands of jobs in the wider economy. Despite the trend to consolidate the purchasing of supplies, the majority of our spending remains in the countries where our operations are located. In South Africa and the USA, we monitor and try to increase the business we do with commercial equity and minority enterprises respectively.
One measure of how all stakeholders benefit from the wealth generated by the business is the cash value-added – worth more than US$5,600 million in the year under review, up by more than 40% on the previous period. Governments gain the largest share of the value we create, approaching half (43%), due to the high level of excise duties and other taxes levied on the group. Our 39,500 employees are the next largest beneficiaries, receiving nearly a quarter. Providers of capital, both investors and lenders, received 12%.
We also recognise the wider economic impact that a beverage company has through its product distribution network to wholesalers, shops, bars, restaurants and hotels, and also to many informal retailers. We estimate that around 1.6 million jobs are sustained in our forward and backward linkages.
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