Global slowdown hits beer demand: SAB

CONSUMER demand for beer has been affected by the current global economic slowdown, brewing giant SABMiller said yesterday.

The group’s trading update for its third quarter ended December 31 showed that lager volumes for the third quarter declined one per cent.
In Europe, third quarter lager volume dropped one per cent as the region experienced ‘the impacts of the global financial crisis on consumer disposable income’.
Poland achieved volume growth of two per cent and increased market share.
However, in Romania, the rate of volume growth slowed to 11 per cent in the quarter.
Volumes in Russia were 22 per cent down, ‘reflecting the continuation of de-stocking of wholesaler inventories which began in September, as well as the effects of a sharp economic slowdown’.
In the Czech Republic, domestic volumes declined by one per cent, but market share was gained on the prior comparative period, SABMiller said.
In the three months to December 31, MillerCoors – SABMiller’s American joint venture with Molson Coors Brewing Co – saw its domestic sales to retailers dip by 2.3 per cent.
According to SABMiller, volumes were flat in China, with growth in the Chinese economy slowing.
In Africa, lager volumes grew by four per cent – and would have seen more growth had it not been for Botswana, the group said.
In Botswana, volumes declined ‘significantly’ following the imposition of a social tax levy on all alcohol products on November 1.
Growth in Tanzania slowed to seven per cent in the quarter as economic conditions tightened.
However, in South Africa, lager volumes grew one per cent ‘with a strong performance from the mainstream portfolio as consumers traded down in the light of tougher economic conditions’.
In Latin America, lager volumes grew by two per cent in the quarter.
However, lager volumes in Colombia were six per cent below the prior year, with share gains in the context of a weakening consumer environment, the brewer said.
In Peru, lager volumes were 14 per cent ahead of the prior year, reflecting a robust trading environment and market share was gained.
SABMiller’s business in Ecuador delivered 15 per cent lager volume growth, with the market continuing to perform well.
SABMiller’s brands include Grolsch, Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie.
SABMiller plc is listed on the London and Johannesburg stock exchanges. – Nampa-Sapa