SABMiller has said that Miller's three-year turnaround programme is on course. The brewer said yesterday (27 September) that it will increase its reinvestment both in its current turnaround and in generating long-term growth.

SABMiller was speaking at the halfway point of the three-year programme to revitalise its US brewing operations Miller Brewing, which it acquired from Philip Morris.

Rising investment in brand-building will both slow near-term margin growth and result in an increase in capital expenditure, the company said.

Miller will seek modest sales volume growth in its total domestic brand portfolio and improving revenue per barrel driven by both pricing and sales mix. Incremental cost savings will be partially reinvested to sustain growth for the long run, and operating margins are expected to rise into double digits over the medium term, SABMiller said.

"Miller's pricing and promotion philosophy as a rational, increasingly sophisticated approach (will) be applied locally to drive value for the company," SABMiller added.

On the basis of new investments in equipment, systems and training, Miller intends to further upgrade its manufacturing processes, supply chain and procurement practices, thereby enhancing its cost structure for the long term.