News Archive  

Beer-loving Africans increase SABMiller revenue

The world’s second biggest brewer SABMiller is confident that sub-Saharan Africans will carry on being thirsty for beer after increasing its revenue targets. The company has invested $1.5 billion over the past four years in Angola, Mozambique and Tanzania – and now says it is focused on growth in Ethiopia, Nigeria and southern Sudan.
 Castle lager is SABMiller's flagship brand (Credit: One..
 
 
The world’s second biggest brewer SABMiller is confident that sub-Saharan Africans will carry on being thirsty for beer after increasing its revenue targets.

The company has invested $1.5 billion over the past four years in Angola, Mozambique and Tanzania – and now says it is focused on growth in Ethiopia, Nigeria and southern Sudan.

Primary beer volumes grew 12 percent in the last three months of 2010 in SABMiller’s Africa business unit, which excludes South Africa. It is the company’s fastest growing beer market along with Asia.

Great expectations

Expectations for revenue per hectolitre growth have been increased from a range of 1 percent to 3 percent, to a range of 3 to 5 percent, subject to currency fluctuations.

Helped by continues population growth and economic improvement, Mark Bowman, Managing Director of SABMiller Africa said: “Africa has good GDP growth, better governance and strong population growth, all conditions to do well.”

He added that GDP in 2010-2013 for sub-Saharan Africa is set to grow at a faster rate than the rest of the world at 5 percent a year compared to 3 percent elsewhere.


SEE MORE FROM THE WDM CONTENT NETWORK:

To read the latest edition of African Business Review, click here.

Africa’s top five billionaires

Africa’s telecoms movers and shakers

Top smartphones: Opening doors to a communications revolution



Castle a  'powerful brand'

Africa’s 1 billion strong population is also expected to grow at over 2 percent per year.

African urbanisation has risen from 28 percent in 1980 to about 40 percent now and as a result has led to more middle-class consumers. There are 52 African cities with a population of over a million.

Bowman also said the brewer had struggled to keep up with demand for Castle lager in Africa and heralded it as a powerful brand.

African Business Review profiled SABMiller earlier this month to take a closer look at Africa’s biggest brewer, while only the focus around World Water Day yesterday saw the UN urge Africa to meet water demands in increasing urbanised areas.

MTN is another African company reaping the benefits of middle-class consumerism in the continent, as they recently announced a 22 percent increase in subscribers in 2010.





Featured Articles + MORE Featured Articles >>