SABMiller Q3 Lager Volumes Flat, Soft Drinks Up 2%

SABMiller has reported that on an organic basis lager volumes for the third quarter ended 31 December 2009 were level with the prior year, and 1% below last year for the first nine months of the financial year. Soft drinks volumes grew 2% in the quarter on an organic basis.

In Latin America, lager volumes grew by 4% in the quarter. Lager volumes in Colombia grew 6% benefiting from good weather, an increase in consumer disposable income and strong operational execution. In Peru, lager volumes were up 1%, notwithstanding growth of 14% in the same quarter last year, with strong sales execution driving further market share gains.

The company said ‘good growth’ continued in Ecuador with lager volumes up 9% reflecting the success of sales initiatives and wider retail outlet penetration. Soft drinks volumes were up 9% in the region on an organic basis due to a strong sales performance in Central America.

In Europe, third quarter lager volumes declined 2% on an organic basis.  Organic volumes in Russia grew 34%, reflecting significant buy-in ahead of a substantial excise increase in January and the impact of de-stocking of wholesaler inventories in the prior year. Poland's volumes were down 5% and in Romania, lager volumes declined 18% on an organic basis, against a strong prior year growth comparative of 11%. In the Czech Republic, domestic volumes declined by 5%.

In Africa, lager volumes rose 7% on an organic basis. Soft drink across the region grew 7% on the same basis. In Zambia, lager volumes were up 17%, assisted by an excise reduction in March 2009 and Mozambique's lager volumes grew 11% aided by strong growth in the northern region supported by the commissioning of new brewery in Nampula.

Lager volumes in Angola grew 17% assisted by additional capacity and in Botswana lager volumes were down 29%, with some reduction in the rate of decline as the social levy imposed in November 2008 was cycled. Volumes in Tanzania declined 8% impacted by unseasonal weather and a soft economy, the company said.

Lager volumes in Asia grew 5% on an organic basis. Organic volume growth in China slowed to 6% with heavy snow and wet weather suppressing demand across the country.  Volumes in India were down 7% following excise increases and a continuation of regulatory impediments.

In South Africa, lager volumes declined 4% in the quarter due to lack of consumer demand. Soft drinks volumes were down 5%, impacted by a weak economy and unseasonal cold weather at the start of the quarter.