SABMiller solidifies its presence in South America


SABMiller expands their beer category as they look to strengthen their market presence in Latin America.

An investor meeting will be held in London today where SABMiller President Latin America, Karl Lippert, will be outlining the business’s growth strategy across the region.

This will detail how SABMiller plans to make its portfolio of beers and soft drinks relevant to more consumers on a broader range of occasions.


According to a report, in the financial year that ended on 31 March 2015, Latin America generated the largest portion of SABMiller’s EBITA (earnings before interest, taxes and amortization) at 2.22 billion dollars, representing 35 per cent of the company’s total.

“EBITA for the region has grown at a compound annual growth rate of 11 per cent from 2011 to 2015,” said the company in a statement.

SABMiller’s strategy to unlocking this growth is making beer the drink of choice on more occasions, for a wider group of consumers and with innovation playing an important role.

This is in line with the company’s strategy to drive superior topline growth through expanding the beer category and strengthening its brand portfolio.

Lippert said, “We have grown beer’s share of total alcohol in our Latin American markets from 55per cent to 59 per cent in the past four years. This has been achieved primarily by taking share from cheaper spirits, and untaxed and inexpensive illegal alcohol. Our beers provide a safe, attractive and affordable alternative to illegal alcohol, which represents more than a fifth of the total alcohol market in some Latin American countries.”

Lippert added that being able to reach consumers when they are at home presents a great opportunity.  He estimated that the annual consumption of packaged beverages sits at around 100 million hecto litres in core Latin American markets.

For the year ended 31 March 2015, 12% of Latin American net producer revenue was generated by product innovation such as affordable bulk packs, additional light beer brands, new variants and SABMiller’s first non-alcoholic beer in the region, Aguila Cero in Colombia.