just On Call - SABMiller targets low-income consumers in Latin America
SABMiller is looking to generate strong growth in its Latin American markets by focusing on the introduction of "affordable" products in the region.
At its latest quarterly divisional seminar, held in London earlier today (25 March), the global brewer highlighted its intentions to target lower-income consumers in Colombia, Ecuador, El Salvador, Honduras, Panama and Peru. While the middle class is growing in SABMiller's six core markets, the company said it sees a healthy upside from "attract(ing) these consumers away from low quality local spirits, often produced and sold illegally, by providing affordable alternatives in its portfolio".
Whilst conceding that socio-economic levels are on the rise in all markets, the president of SABMiller's Latin America division, Karl Lippert, noted that around 80% of the population in the six countries are still below socio-economic level 'C' (defined as earning in the region of US$380 per month or less).
"The work across our markets in making products affordable and accessible ... continues to drive our business," Lippert told analysts and media at the seminar. "We believe we can continue to deliver mid-single digit volume growth and upper-single digit revenue growth for the foreseeable future.”
SABMiller also used the seminar to detail the high rates of illegal alcohol production and consumption in the region. Colombia, Peru and Ecuador together account for 94% of the illegal market across SABMiller's LatAm presence, with counterfeit leading the way just ahead of contraband product.
"Our corporate affairs teams are engaging with authorities and helping with the knowledge that our work in the marketplace provides us with," said Andres Peñate, SABMiller's senior VP of corporate affairs in the region.
The brewer concluded the presentation by forecasting medium-term volume growth of between 4% and 6% and EBITDA margin growth of between +60 and +80 bps.
To view SABMiller's quarterly seminar, click here.
Earlier this week, analysts at UBS released their latest 'Beeronomics' research note, looking at the global beer landscape. Here, courtesy of UBS, is a breakdown of the top 25 beer markets around the ...
The world’s second largest brewer, SABMiller’s geographic profile provides a strong platform from which to exploit forecast volume growth in emerging markets. This profile analyses the company’s emplo...
This report comprises of high level market research data on the Australia beer industry, published by Canadean. The report covers total market (on- and off-premise) and includes valuable insight and ...
- Coca-Cola pressure builds as bid rumours swirl
- Gin: Plymouth's from Plymouth, London's from...?
- Comment - Diageo Making the Best of a Bad Job?
- Comment - IPO Launch a Tonic for Fever-Tree
- How Modern Marketing Compounds My Twitter Shame
- NPD - Moët Hennessy’s Glenmorangie Dornoch
- Anheuser-Busch InBev cuts jobs in US shake-up
- Pernod blames rule changes for Plymouth GI drop
- William Grant unveils bespoke Glenfiddich website
- Diageo targets Millenial women with Baileys push
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Early Signals: future scenarios that will drive consumption and product innovation over the next five years
- Global Beer Opportunities: Beyond Standard Lager
- The IWSR Global Trends Report 2014
- Global Cognac insights - market forecasts, product innovation and consumer trends research