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SABMiller reveals economic impact in Europe

21 December 2009

An employee at the Pilsen brewery checks empty Pilsner Urquell bottles

Ref 30/2010

21 December 2009

Ernst & Young  report on SABMiller's contributions to the European Economy

Reveals the economic impact beyond excise

A recent Ernst and Young study has reviewed SABMiller's economic, regional and social impact in Europe. The work, which is based on the financial year ending 31 March 2009, looked at the impact of the production and sale of SABMiller's beers in Russia and the nine EU countries where it operates.

Through its acquisitions, principally in Central and Eastern Europe, SABMiller has gradually grown into a significant brewing force within Europe, with influence far beyond the gates of its breweries. The Ernst and Young report has found that for every person employed at the 23 European SABMiller breweries, an additional 15 jobs are generated in other industries including agriculture, transport, retail and advertising. In total this means that nearly a quarter of a million jobs are directly or indirectly related to the production and sale of SABMiller's beers.

SABMiller breweries in Europe sold approximately 45 million hectolitres of beer in 2008 - the equivalent of nearly eight billion pints. In turn these generated EUR 3.83 billion in government revenues from sources such as excise, VAT paid both by brewers and hospitality sector companies, social security contributions and personal income taxes paid by both SABMiller and supply chain employees.

 The survey has found that the economic impact of SABMiller breweries is particularly significant in the regions in which they are located. Around 40% (27,500) of all supply sector jobs generated by SABMiller are in the same region as the breweries, within this the majority of jobs (63%) are in the agricultural sector.

SABMiller CEO Graham Mackay said: "Good business is good for development - so long as companies operate in a responsible and accountable manner. For us a healthy, growing economic environment in the communities where we operate is the key to achieving business success. By better understanding our socio-economic impact, we can maximise our ability to make a difference through stimulating economic development."

Beyond the quantitative, economic analysis, the report provides an overview of some of the social and environmental impacts of SABMiller's European operations. For example in the last three years most of them have implemented projects aimed at reducing energy use; all operations have been involved in an ambitious training programme to implement SABMiller's principles and policies on advertising and all countries have initiatives to promote responsible drinking.

The full report can be accessed here

Notes to editors:
SABMiller is one of the world's largest brewers with brewing interests and distribution agreements across six continents. The group's wide portfolio of brands includes premium international beers such as Grolsch, Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as market-leading local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. SABMiller is also one of the largest bottlers of Coca-Cola products in the world.
In the year ended 31 March 2009, the group reported US$3,405 million in adjusted pre-tax profit and group revenue of US$25,302 million. SABMiller is listed on the London and Johannesburg stock exchanges.
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Nigel Fairbrass Head of Media Relations Tel: +44 20 7569 0105
Bianca Shevlin Corporate Media Relations Manager Tel: +44 20 7659 0172

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