UK: US fails to dent SABMiller H1

SABMiller has seen trading in the last six months in line with expectations, despite a fall in the US.

The global brewer issued a trading update today (12 October) for the six months to 30 September, which noted a lift in sales volumes on an organic basis of 9% on the corresponding period a year earlier.

In North America, however, Miller's US domestic sales to retailers slid by 3.6%. "Volumes continued to be affected by the 2005 competitive price reductions and market share gains by the import and craft beer segments," the company said. While Miller Lite volumes slid slightly, the brewer was encouraged by the performance of premium beer brands Peroni Nastro Azzuro and Leinenkugel.

Excluding the performance of Bavaria, which SABMiller acquired in October last year, the company saw trading conditions in South America lead to an 11% rise in lager volumes for the six-month period. "Our integration activities in the region are proceeding well, and we have commenced a period of increased investment in the market place as evidenced by the recent launches in the premium segment of Peroni Nastro Azzurro in Colombia and Barena in Peru," SABMiller said. In Central America, both beer and soft drink volumes were up by around 6%.

In Europe, volumes registered a climb of 8% thanks to the World Cup. The company was impressed with volume sales in Poland, while Czech and Italy achieved marginal growth. Russia delivered a rise of over 20%, as Zolotaya Bochka, Kozel, Miller Genuine Draft and Redds all posted double-digit gains. Romania also reported double-digit growth for the period. In the UK, the company boasted of a 25% leap in volumes for its Peroni Nastro Azzuro brand, which contributed to what it called "good momentum".

Africa and Asia delivered growth of over 20%, with China recording organic growth in excess of 25%. In Africa - excluding Zimbabwe - lager volumes grew by 6%, with volumes in Tanzania advancing in mid-single digits. The company reported strong gains in Mozambique and Uganda, outweighing the volume decline in Botswana resulting from the prior years' local currency devaluations.

In South Africa, both lager and soft drink volumes were flat, rising by around 1% each. The company highlighted favourable weather conditions in the same period a year earlier as proving challenging this year.