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SAB
SOSAB
SABMiller plc - SABMiller Highlights Global Beer Growth Opportunities
JSEALPHA CODE : SAB
ISSUER CODE SOSAB
ISIN CODE GB0004835483
SABMILLER HIGHLIGHTS GLOBAL BEER GROWTH OPPORTUNITIES
London and Johannesburg, 24 February 2006. In a presentation to the 2006
Consumer Analyst Group of New York (CAGNY) annual conference yesterday in
Scottsdale, Arizona SABMiller plc Chief Executive Graham Mackay set out why the
group"s broad exposure to the global beer industry will underpin future growth.
He said:
"The world"s population is forecast to grow to 6.8 billion people by the year
2010, and much of this growth will come from emerging markets. In most markets,
we see strong trade up trends across most consumer product categories. Here in
America and in other developed markets, that means growth in wine and spirits,
and a move to premiumisation within the beer market. In the rest of the world
however, the opportunity is far greater, as consumers trade up from lower
quality, cheap beer, into modernised mainstream products and then on into what
we refer to as `worthmore" brands. Consumers are also moving into beer as an
aspirational mainstream alternative to cheap spirits, or other types of local
indigenous alcohol. This is increasing beer"s share of total alcohol across the
emerging market landscape and there is a long way to go. Per capita consumption
of beer stands at roughly 84 litres in the US, but in our Central and Eastern
European markets it is only 60. In our Latin American markets it is just 31;
and it is 6 in Africa, 23 in China and only 1 litre of beer is consumed per
person per year in India. We believe this growth trend will continue for a very
long time to come, and it presents us with some exciting opportunities."
In the same presentation Norman Adami, the President of SABMiller"s North
American subsidiary, Miller Brewing Company, confirmed that whilst SABMiller had
achieved its three year turnaround objectives in stabilising the Miller
business, it now faces new challenges. He said:
"The Miller business is now moving into what we are referring to as the `step
up" phase, in which we will begin to demonstrate that we can indeed restore our
overall portfolio to growth. There are a number of imperatives on which this is
built. Firstly, we will extend the progress made in strengthening our
leadership and organisation. Secondly, we will sustain and build on the improved
relationship with our distributors, which has been one of the most
underestimated factors in our success to date. Thirdly, we will strengthen and
clarify the unique, relevant brand position for Miller Lite, whilst
simultaneously furthering the dialogue with its principal competitor. Fourthly,
we will establish a clear and bold brand position for Miller Genuine Draft, and
at the same time balance brand-building with cost management to ensure that
Miller High Life and Milwaukee"s Best weather the likelihood of ongoing price
pressure within the economy segment led by the industry leader. Finally, we must
create momentum behind Peroni Nastro Azzurro and Pilsner Urquell whilst ensuring
we maintain their positioning as high-end imports."
In the same presentation, Barry Smith, President of SABMiller Latin America,
commented on the growth prospects for SABMiller"s newly acquired businesses in
Colombia, Peru, Panama and Ecuador:
"Panama, Colombia, Ecuador and Peru together represent a larger region than many
people would expect. Its population of 89 million would make it the largest
country in Europe, and its current per capita consumption levels of 31 litres
are little more than half those we see in South Africa. The expected regional 5
year volume growth of c.4% compares favourably with corresponding growth rates
in the rest of Latin America and is supported by forecast GDP growth of almost
4%.
"Our strategy is to invest significant resources in improving the image of the
beer category, through marketing, packaging and point of sale development. We
will enhance beer"s image across the market, but we will also target specific
consumer segments and channels, which will broaden beer"s role within the
alcohol category across a wider range of occasions. It is worth remembering
that per capita consumption in Colombia was 54 litres per capita at its peak and
34 litres in Peru. The current levels are 34 and 24 respectively and we are
confident that with actively managed pricing, we can begin to restore the
consumption levels these countries enjoyed in the past."
SABMiller addressed the conference yesterday at 6.50pm EST (11.50pm GMT). The
presentation and Q&A session was webcast live at www.sabmiller.com and is
available for replay.
Ends
Notes to editors
SABMiller
SABMiller plc is one of the world"s largest brewers with brewing interests or
distribution agreements in over 60 countries across five continents. The group"s
brands include premium international beers such as Miller Genuine Draft, Peroni
Nastro Azzurro and Pilsner Urquell, as well as an exceptional range of market
leading local brands. Outside the USA, SABMiller plc is also one of the largest
bottlers of Coca-Cola products in the world.
In the year ended 31 March 2005, the group reported US$2,194 million pre-tax
profit and a turnover of US$14,543 million on a UK GAAP basis. SABMiller plc is
listed on the London and Johannesburg stock exchanges.
This announcement is available on the company website: www.sabmiller.com
High resolution images are available for the media to view and download free of
charge from: www.vismedia.co.uk
Enquiries:
Tel: +44 20 7659 0100
SABMiller plc
Sue Clark Director of Corporate Tel: +44 20 7659 0184
Affairs
Gary Leibowitz Vice President, Investor Tel: +44 20 7659 0174
Relations
Nigel Fairbrass Head of Media Relations Tel: +44 20 7659 0105
This announcement does not constitute an offer to sell or issue or the
solicitation of an offer to buy or acquire securities of SABMiller plc (the
"Company") or any of its affiliates in any jurisdiction or an inducement to
enter into investment activity.
This document includes "forward-looking statements". These statements may
contain the words "anticipate", "believe", "intend", "estimate", "expect" and
words of similar meaning. All statements other than statements of historical
facts included in this announcement, including, without limitation, those
regarding the Company"s financial position, business strategy, plans and
objectives of management for future operations (including development plans and
objectives relating to the Company"s products and services) are forward-looking
statements. These forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause the actual results,
performance or achievements of the Company to be materially different from
future results, performance or achievements expressed or implied
by such forward-looking statements. These forward-looking statements are based
on numerous assumptions regarding the Company"s present and future business
strategies and the environment in which the Company will operate in the future.
These forward-looking statements speak only as at the date of this announcement.
The Company expressly disclaims any obligation or undertaking to disseminate any
updates or revisions to any forward-looking statements contained in this
announcement to reflect any change in the Company"s expectations with regard
thereto or any change in events, conditions or circumstances on which any such
statement is based.
Any information contained in this announcement on the price at which the
Company"s securities have been bought or sold in the past, or on the yield on
such securities, should not be relied upon as a guide to future performance.
Date: 24/02/2006 09:00:04 AM Produced by the JSE SENS Department
