SABMiller is mulling plans to build a brewery near the Colombian city of Cali, a project that could cost up to US$150m.

The London-listed brewing giant, which owns Colombia's largest brewer, Bavaria, said today (1 June) that it was looking into constructing a new brewery but had yet to reach a decision.

An SABMiller spokesman told just-drinks: "We are still assessing our available capacity in Colombia and whether to build on existing sites or whether it is necessary to build a new brewery."

Reports in Colombia suggested that it could cost SABMiller up to US$150m to build the brewery, which, it is understood, would have a capacity of 3-4m hectolitres. The spokesman, however, declined to comment on the projected cost or capacity of the brewery.

Nevertheless, the spokesman said that SABMiller would look to upgrade and expand its existing seven sites in Colombia as the brewer looks to keep ahead of growing demand for beer in the country.

Per capita beer consumption in Colombia stands at 42 litres per person. SABMiller believes that investment in distribution, packaging and brand development will drive demand for beer in the Andean country.