Sales flat at SAB as drinkers save money

On the shelf: SABMiller, which which owns Peroni, saw no growth in worldwide beer sales

11 April 2012

Beer sales stayed flat at brewing giant SABMiller in the past year, underperforming market expectations.

The City had expected total beer sales to rise by 1% but instead the world's second-largest brewer - which owns Grolsch, Peroni and Miller Lite - showed no growth in worldwide beer sales for the year to the end of March, and demand in the fourth quarter falling by 1%.

SABMiller was hard hit by falling demand among drinkers in emerging markets as the recession hit spending power.

Of the world's four largest brewers, SABMiller relies the most heavily on emerging markets - including Colombia and Russia - where it pushed through price hikes as currency values plunged.

UBS analyst Melissa Earlam said: "SAB's outlook is very uncertain due to high emerging-market exposure and its need to continue to increase prices due to input cost headwinds.

"If SAB does still drive strong pricing in 2010, we believe volumes will be harder hit."

Shares in SABMiller today were down 18p at 1045p.