SABMiller Q3 lager sales flat; soft drinks up 2 per cent

In Latin America, lager volumes grew by 4 per cent in the quarter. Lager volumes in Colombia grew 6 per cent, benefiting from good weather, an increase in consumer disposable income and strong operational execution. In Peru, lager volumes were up 1 per cent, notwithstanding growth of 14 per cent in the same quarter last year, with strong sales execution driving further market share gains.

The company said 'good growth' continued in Ecuador with lager volumes up 9 per cent reflecting the success of sales initiatives and wider retail outlet penetration. Soft drinks volumes were up 9 per cent in the region on an organic basis due to a strong sales performance in Central America.

In Europe, third quarter lager volumes declined 2 per cent on an organic basis. Organic volumes in Russia grew 34 per cent, reflecting significant buy-in ahead of a substantial excise increase in January and the impact of de-stocking of wholesaler inventories in the prior year. Poland's volumes were down 5 per cent and in Romania, lager volumes declined 18 per cent on an organic basis, against a strong prior year growth comparative of 11 per cent. In the Czech Republic, domestic volumes declined by 5 per cent.

In Africa, lager volumes rose 7 per cent on an organic basis. Soft drink across the region grew 7 per cent on the same basis. In Zambia, lager volumes were up 17 per cent, assisted by an excise reduction in March 2009 and Mozambique's lager volumes grew 11 per cent aided by strong growth in the northern region supported by the commissioning of new brewery in Nampula.

Lager volumes in Angola grew 17 per cent assisted by additional capacity and in Botswana lager volumes were down 29 per cent, with some reduction in the rate of decline as the social levy imposed in November 2008 was cycled. Volumes in Tanzania declined 8 per cent impacted by unseasonal weather and a soft economy, the company said.

Lager volumes in Asia grew 5 per cent on an organic basis. Organic volume growth in China slowed to 6 per cent, with heavy snow and wet weather suppressing demand across the country. Volumes in India were down 7 per cent, following excise increases and a continuation of regulatory impediments.

In South Africa, lager volumes declined 4 per cent in the quarter due to lack of consumer demand. Soft drinks volumes were down 5 per cent, impacted by a weak economy and unseasonal cold weather at the start of the quarter.