Wednesday, Mar 24, 2004
Miller Brewing, the second-biggest beer maker in the US, has continued to stabilise under the ownership of SABMiller.
Miller was bought by South African Breweries in 2002 and the enlarged, London-listed company was named SABMiller.
After tentatively announcing early signs of recovery at Miller in November, SABMiller reported further progress in a trading update yesterday.
Miller's pro forma sales to retailers fell 2.7 per cent in the 11 months to February - better than the 4.4 per cent drop for the six months to the end of September 2003.
It is understood that pro forma sales to retailers actually began to grow in early 2004. Miller's financial performance was now ahead of expectations, SABMiller said.
Miller Lite, which is low in carbohydrates, continued to benefit from the Atkins diet craze, posting 31 weeks of growth in supermarkets. This was offset by the weak performance of Miller Genuine Draft and Milwaukee's Best.
Globally, organic sales by volume of SABMiller's lagers rose just over 3 per cent in the 11-month period.
It said operating performance remained strong.
In central America, beer volumes rose 4 per cent but carbonated drinks were down 4.5 per cent.
South African beer volumes were up 3 per cent while those in Africa and Asia combined also rose 3 per cent.
Europe remained strong with underlying beer volumes up 8 per cent.
However, the integration of Peroni, which it bought last year, will hit profits.
SABMiller said it would continue to look at consolidation opportunities but added: "We don't feel compelled to make acquisitions." Adam Jones and Mary Watkins, London
By ADAM JONES and MARY WATKINS
Copyright The Financial Times Ltd 2004. Privacy policy.
