Wrap Text
SABMiller to expand beer category appeal for future growth in Latin America
SABMiller plc
JSEALPHA CODE: SAB
ISIN CODE: SOSAB
ISIN CODE: GB0004835483
SABMiller to expand beer category appeal for future growth in Latin America
22 June 2015
At an investor seminar in London today, Karl Lippert, President of SABMiller Latin America, will outline
the business’s growth strategy across the region, setting out how SABMiller plans to make its portfolio
of beers and soft drinks relevant to more consumers on a broader range of occasions.
In the year ended 31 March 2015, Latin America generated the largest proportion of SABMiller’s
EBITA, at $2.22bn, representing 35% of the group’s total. EBITA for the region has grown at a
compound annual growth rate of 11% from 2011 to 2015. Per capita consumption of beer currently
sits at around 43 litres per year in SABMiller’s key markets of Colombia, Peru and Ecuador, and is less
than half this rate in Honduras and El Salvador. In comparison with other markets in the region, such
as Panama, Brazil and Mexico, where PCC sits between 65 and 70 litres, there is still considerable
room for growth.
SABMiller believes the key to unlocking this growth is making beer the drink of choice on more
occasions and for a wider group of consumers, and innovation plays an important role here. This is in
line with the company’s strategy to drive superior topline growth through expanding the beer
category and strengthening its brand portfolios.
For the year ended 31 March 2015, 12% of Latin American net producer revenue was generated by
product innovation such as affordable bulk packs, additional light beer brands, new variants and
SABMiller’s first non-alcoholic beer in the region, Aguila Cero in Colombia.
Karl Lippert said: “We have grown beer’s share of total alcohol in our Latin American markets from
55% to 59% in the past four years. This has been achieved primarily by taking share from cheaper
spirits, and untaxed and inexpensive illegal alcohol. Our beers provide a safe, attractive and
affordable alternative to illegal alcohol, which represents more than a fifth of the total alcohol market
in some Latin American countries.
“As we look to expand the beer category in Latin America, we plan to have an attractive beer choice
for everyone, for men and for women, while having dinner with friends, relaxing at home, or out in a
sophisticated high-end club.
SABMiller plc
“One of our greatest opportunities is to reach consumers when they’re at home. We estimate that
annual consumption of packaged beverages at home sits at around 100 million hectolitres in our core
Latin American markets. We can do more to grow beer’s appeal in this setting and the opportunity for
us to grow the overall size, and the value of our beverage share of it is significant.
“We have successfully grown beer’s presence in special occasions and when consumers are socialising
out of the home. Premiumisation and developing new flavour variants and easier drinking lagers that
appeal to a broad mixed gender audience, will be key drivers in growing beer’s potential in these
occasions.”
Seminar
Randy Ransom (Senior Vice President, Marketing & Innovation SABMiller Latin America), Grant
Harries (President SABMiller Colombia) and Fernando Zavala Lombardi (President SABMiller Peru) will
also present alongside Karl Lippert at the seminar.
The event is being webcast live at 09:30 GMT today (22 June 2015) and can be accessed on
www.sabmiller.com along with the slides from the presentation. A replay of the webcast will be
available shortly after the seminar has ended later this afternoon.
The management team will deliver the seminar again tomorrow, 23 June, in New York at 1pm local
time.
SABMiller Latin America medium-term guidance to be given at the seminar 1
- Total volume growth: 3% - 6%
- Lager volume growth: 3% - 5%
- Soft drinks volume growth: 4% - 6%
- NPR per HL growth: 2% - 4%
- EBITA margin growth: 10-30bps
ENDS
1
Notes on medium-term guidance:
- The seminar presentation provides guidance for the 3 to 5 year period from the date of the
presentation.
- The presentation does not provide guidance or constitute a forecast (or similar) for any one
specific year, nor can it be used to interpolate backwards to imply a forecast for any specific
year.
- The guidance provided on volumes and revenue is guidance for the CAGR between the date of
the presentation to the future period referred to.
SABMiller plc
- The guidance on margin improvement is guidance for the average annual rate of improvement
between the date of the presentation and the future period referred to.
- The guidance assumes constant currency at the date of the presentation
Notes to editors
SABMiller plc
SABMiller is in the beer and soft drinks business, bringing refreshment and sociability to millions of
people all over the world who enjoy our drinks. The company does business in a way that improves
livelihoods and helps build communities.
SABMiller is passionate about brewing and has a long tradition of craftsmanship, making superb beer
from high quality natural ingredients. Our local beer experts brew more than 200 beers from which a
range of special regional and global brands have been carefully selected and nurtured.
SABMiller is a FTSE-20 company, with shares trading on the London Stock Exchange, and a secondary
listing on the Johannesburg Stock Exchange. The group employs around 69,000 people in more than
80 countries, from Australia to Zambia, Colombia to the Czech Republic, and South Africa to the USA.
Every minute of every day, more than 140,000 bottles of SABMiller beer are sold around the world.
In the year ended 31 March 2015, SABMiller sold 324 million hectolitres of lager, soft drinks and other
alcoholic beverages, generating group net producer revenue of US$26,288 million and EBITA of
US$6,367 million.
This announcement is available on the company website: www.sabmiller.com
Further information is also available on:
www.sabmiller.com
www.facebook.com/sabmiller
www.twitter.com/sabmiller
www.youtube.com/sabmiller
Enquiries
SABMiller plc Gary Leibowitz Christina Mills Richard Farnsworth
t: +44 20 7659 0100 Director, Investor Director, Business Media
Engagement Communications and Relations Manager
SABMiller plc Reputation SABMiller plc
t: +44 20 7659 0119 SABMiller plc t: +44 7734 776 317
t: +44 7825 275 605
Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd
SABMiller plc
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