SABMiller to target growth in Latin America

SABMiller on Monday confirmed plans to target further beer volume growth and share gains in its Latin American division of the next three to five years.

The group explained that in Latin American, which is its biggest contributor to profitability, the beer category's share of total alcohol consumed there has grown significantly, but said consumption is still well below the levels reached in reference markets like Venezuela, Panama, Brazil and Mexico.

It also said that beer is still an expensive and aspirational product for many consumers, with around 80% of the population in SABMiller's Latin American markets considered low income consumers. A key part of SABMiller's strategy in the region is to attract these consumers away from low quality local spirits, often produced and sold illegally, by providing affordable alternatives in its portfolio.

Karl Lippert, President of SABMiller Latin America, said: "The outlook for our Latin American markets remains positive. The work across our markets in making products affordable and accessible, simultaneously premiumising our portfolios and exciting consumers with innovative new offerings, continues to drive our business.

"By targeting new consumer occasions and enabling real choice we are enriching the lives of consumers across the region. We believe we can continue to deliver mid-single digit volume growth and upper-single digit revenue growth for the foreseeable future."

NR