SABMiller sales level out; Miller growth slows

Modern Brewery Age, March 28, 2005

SABMiller reported that sales of its lager beers slowed in 2004, though the company said its performance remained in line with expectations. SABMiller reported lager volume growth of over 4% for the 11 months to February compared to the 5% growth it reported in January for the third quarter.

SABMiller finance director Malcolm Wyman told media outlets that Miller sales were down slightly in the first two months of 2005, but outperformed a 4.7 percent drop in the entire U.S. beer industry in January.

Wyman blamed higher energy costs, winter storms and increased consumption of wines and spirits for the drop.

The company reported that Miller's 11-month sales to retailers rose 0.9 percent. In the first nine months, sales of the second-largest U.S. brewer grew 1.5 percent, including a poor third quarter to end-December with sales down 0.3 percent.

Wyman said that sales of Miller Lite continued to grow, but said that this growth had slowed since the brand is now operating from a larger base, and also faces weaker industry conditions.