Manufacturing News South Africa

SABMiller eyes beer market in Latin America

SABMiller is gearing up to gain more market share in the beer category in Latin America.

In the year ended March 2015, Latin America generated the largest proportion of SABMiller's earnings before interest, taxes and amortisation (EBITA), at $2.22 billion, representing 35% of its total. EBITA for the region has grown at a compound annual growth rate of 11% from 2011 to 2015.

An attractive beer choice for everyone

Karl Lippert, president of SABMiller Latin America, said on Monday the brewery giant planned to have an attractive beer choice for everyone. "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," Lippert said.

"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," he said.

Growth strategy

As part of its growth strategy across the region, SABMiller plans to make its portfolio of beers and soft drinks relevant to more consumers on a broader range of occasions. "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," Lippert said.

"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," he said.

Source: INET BFA

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