JOHANNESBURG July 31 Sapa
SABMiller has been hit by the global economic slowdown with consumers cutting back on drinking, the brewing giant said on Friday.
In a statement, it said its first-quarter underlying beer volumes were flat.
This was in line with its own expectations, the company said.
Soft drinks volume rose 2% in the first quarter, ”driven by strong sales in Africa”.
In South Africa, the market grew by about 2%, benefiting from the Easter peak trading period in the current year, SABMiller’s chief executive Graham Mackay said.
”The underlying market continues to be affected by weakening consumer demand, rising unemployment and constraints on the sale of alcoholic beverages in the Western Cape.”
The company’s lager volumes were down 2% as it lost market share, principally in the premium segment.
Soft drinks volumes were in line with the prior year.
”On 1 July 2009, we announced a proposal to enter into a broad-based black economic empowerment transaction in South Africa.
”This will involve an equity issue of approximately 10% of our South African Beverage business to a broad base of black participants, reflecting the group’s long-standing commitment to socio-economic progress in South African society,” Mackay said.
SABMiller is the world’s second-biggest brewer by volume after Anheuser-Busch.
Its brands include Castle Lager, Pilsner Urquell, Grolsch and Peroni Nastro Azzurro. — Sapa