SABMILLER USING EXPANSION TO STAY IN THE GAME

SABMiller is betting on worldwide expansion to drive company growth with a special emphasis on Asia. CEO Graham Mackay told investors today that he expects Asia to be the focus of acquisitions in the coming year, believing it to have more potential than any other region. The company is supposedly one of the favorite bidders in the race to purchase Foster’s Asian operations, along with their reported interest in Mohan Meakin of India. SABMiller is not the only brewery vying for a spot in Asia… A-B, InBev and Heineken aren’t too far behind. These major brewers need volume, and moving to the burgeoning Asian market seems to be a popular way of doing so.


The brewing giant posted an 8% rise in annual earnings and a 19% revenue increase for the fiscal year ending March 31. While the earnings were in line with forecasts, SABMiller advised caution due to severe price cutting in the U.S. and rising aluminum and energy costs. Global underlying beer volume was up 19%. "We are both cautious because of pricing and rising commodity costs mainly in the U.S. and also confident because of the momentum in the business," said Graham. Earnings were boosted by the five and a half months of results from their South American operation, Bavaria, and growth in Europe, Asia and South Africa. SABMiller is currently the market leader in Colombia, Peru, Ecuador and Panama.