SABMiller targets further growth and market share gains in Latin America
25 March 2013
At an investor conference in London later today, SABMiller plc [SAB.L] will confirm that it is targeting further beer volume growth and share gains in its Latin American division over the next 3-5 years. Latin America is SABMiller’s biggest contributor to group profitability and represented some 32% of group EBITA in the year to March, 2012.
SABMiller has grown the beer category’s share of total alcohol consumed in its Latin American markets significantly. However, while beer consumption in its three largest markets - Colombia, Peru, Ecuador - has grown to an average rate of 42 litres of beer per person, consumption is still well below the levels reached in reference markets like Venezuela, Panama, Brazil and Mexico.
Beer also remains an expensive and aspirational product for many consumers, with around 80% of the population in SABMiller’s Latin American markets considered low income consumers. A key part of SABMiller’s strategy in the region is to attract these consumers away from low quality local spirits, often produced and sold illegally, by providing affordable alternatives in its portfolio.
Karl Lippert, President of SABMiller Latin America, said:
“The outlook for our Latin American markets remains positive. The work across our markets in making products affordable and accessible, simultaneously premiumising our portfolios and exciting consumers with innovative new offerings, continues to drive our business. By targeting new consumer occasions and enabling real choice we are enriching the lives of consumers across the region. We believe we can continue to deliver mid-single digit volume growth and upper-single digit revenue growth for the foreseeable future.”
Bavaria, SABMiller’s subsidiary in Colombia, recently introduced larger bottles for Aguila variants, Poker and Pilsen, which sell at a discount of over 20% to mainstream beer retail prices. These larger packs are shared among friends and provide low income consumers an affordable alternative to cheaper local or illegal spirits. In Peru, making products more accessible in areas with poor infrastructure, such as Cono Sur outside Lima, has helped outlet owners to avoid expensive trips into the city, and supported important share gains.
SABMiller’s affordability and accessibility strategies in Colombia and Peru are explained in greater detail in this video which will be available on sabmiller.com later this morning.
An interview with Andres Penate, SVP Corporate Affairs, SABMiller Latin America, on the issue of illegal alcohol in the region will also be available to view.
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Notes to editors
Overview of SABMiller
SABMiller plc is one of the world’s leading brewers with more than 200 beer brands and some 70,000 employees in over 75 countries. The group’s portfolio includes global brands such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch; as well as leading local brands such as Aguila (Colombia), Castle (South Africa), Miller Lite (USA), Snow (China), Victoria Bitter (Australia) and Tyskie (Poland). SABMiller also has growing soft drinks businesses and is one of the world’s largest bottlers of Coca-Cola products.
In the year ended 31 March 2012 the group reported EBITA of US$5,634 million and group revenue of US$31,388 million. SABMiller plc is listed on the London and Johannesburg stock exchanges.
You can view this news release and supporting video footage on the SABMiller LatAm Quarterly Divisional Seminar webpage.
Also available on the webpage:
- Video webcast presentation (live at 10am GMT or available to replay thereafter)
- Further video content and B-roll footage is available for download
- High resolution images are available for the media to view and download
A short film detailing how we are increasing consumer choice by making beer more affordable and accessible in Latin America.
Andres Peñate, Senior Vice President of Corporate Affairs for SABMiller Latin America, discusses the scale of illegal alcohol in our Latin American markets.