SABMiller sees lager volumes up 3%

In a trading update for the three months ended December 2010, SABMiller said soft drinks volumes grew 5% on an organic basis and were 3% higher for the first nine months.

The group said continued improvement in economic conditions in many of the group's emerging markets assisted its volume performance.

For the quarter, on an organic constant currency basis, group revenue grew by 6% and group revenue per hectolitre was up 3%.

"We have benefited from lower costs of certain raw materials whilst continuing selectively to increase investment in brands and operations. The group's financial performance in the quarter was in line with our expectations," it said.

In Latin America, lager volumes were down by 1% on an organic basis in the quarter, and soft drinks volumes were down 3% in the region, with the decline mostly in Honduras and El Salvador, where weak economic conditions continued to prevail.

In Europe, third quarter lager volumes were in line with the prior year.

In the US, MillerCoors domestic sales to retailers (STRs) in the quarter were down 2.5% against the prior year, in an industry and economic environment which remain testing. Premium light brand volumes fell by less than 1%, with a low single digit decline for Miller Lite but growth in Coors Light. Below premium volumes were down mid single-digits. The Tenth and Blake crafts and imports division saw double-digit growth, led by the ongoing strength of Blue Moon (up 25%). Domestic sales to wholesalers (STWs) declined 2.2% in the same period.

In Africa lager volumes for the quarter grew 12% on an organic basis. Excluding the group's share of Zimbabwe's volumes, lager volume growth in Africa would have been 8%. In South Africa lager volumes continued to grow in the third quarter, up 3%. Growth was driven by ongoing momentum from the group's core power brand portfolio, particularly Castle Lite and Castle Lager.

Lager volumes in Asia were up 12% on an organic basis during the third quarter of the year.

In November 2010, SABMiller acquired Cerveceria Argentina S.A. Isenbeck, the third largest brewer in Argentina, from the Warsteiner Group. CASA Isenbeck's principal brands are Isenbeck and Warsteiner, with total sales volumes in 2009 of approximately 600,000hl.

SABMiller plc's portfolio of brands includes premium international beers such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch, as well as leading local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. SABMiller is also one of the world's largest bottlers of Coca-Cola products.