SABMiller held its latest quarterly divisional seminar in London today

SABMiller held its latest quarterly divisional seminar in London today

Earlier today (25 March), SABMiller hosted its latest quarterly divisional seminar, which looked at its presence in Latin America. Here's a closer look at the brewer's operations in the region, and the landscape for beer in SABMiller's markets in LatAm.

SABMiller overview in Latin America

  • Operations comprise 17 breweries and 14 bottling plants
  • The company has around 27,000 employees in the region
  • Primary beverage operations cover six countries: Colombia, Ecuador, El Salvador, Honduras, Panama and Peru

SABMiller market share

  • Colombia 98%
  • Ecuador 95%
  • El Salvador 90%
  • Honduras 95%
  • Panama 70%
  • Peru 94%

The brewer also has an entry position in Argentina, as a result of its purchase of the country's third largest brewer, Casa Isenbeck, in 2010. Today, SABMiller holds 3.4% market share in the country

Latin America socio-economic levels

While there is a significant growth of middle-class consumers across Latin America, 80% of consumers in SABMiller's six markets in the region is below socio-economic level (SEL) C, defined as earning around US$380 per month

In 2006, 86% of consumers in SABMiller's six markets were SEL C and below. The brewer estimates that, in 2016, that number will have fallen to 74%

Beer in Latin America – share of alcohol market

  • Colombia 62%
  • Ecuador 56%
  • El Salvador 44%
  • Honduras 62%
  • Panama 74%
  • Peru 63%

Beer in Latin America – per capita consumption

  • Colombia 42 litres
  • Ecuador 39 litres
  • El Salvador 21 litres
  • Honduras 14 litres
  • Panama 75 litres
  • Peru 45 litres

SABMiller expects per capita consumption in Colombia and Peru to hit 60 litres in ten years

Beer in Latin America – excise levels

The tax levels on beer in Latin America are higher than average. Many authorities in the region prefer to tax beer at a higher rate than spirits.

  • Excise and VAT on beer in Peru is US$13 more per litre of alcohol equivalent (LAE) than the excise and VAT on spirits
  • El Salvador charges $7.5 more in excise and VAT in beer than it does on spirits in LAE terms
  • Ecuador is only $0.20 tougher on beer than spirits
  • Argentina, Panama, Colombia and Chile all charge higher excise and VAT on spirits than on beer. However, all of them are still above the world average of $7 lower excise per LAE on beer than on spirits

To view SABMiller's presentation, click here.