© Tom Parker/OneRedEye
SABMiller has revealed plans to expedite growth in the Latin American beer market by innovating within its portfolio of beers.
The brewing company is seeking to unlock growth by making beer the drink of choice on more occasions and to a wider group of consumers, its president for the Latin American president told an investor seminar in London today.
Latin America generated the largest proportion of SABMiller’s pre-tax earnings, generating $2.22bn’s worth of sales and accounting for 35% of the group’s total turnover. And it claimed that there was still “considerable room for growth” in Colombia, Peru and Ecuador in particular, with all three markets currently recording a significantly lower rate of per capita beer consumption than Panama, Brazil and Mexico.
SABMiller president for Latin America Karl Lippert said: “We have grown beer’s share of total alcohol in our Latin American markets from 55% to 59% 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.
“As we look to expand the beer category in Latin America, we plan to have an attractive beer choice for everyone, for men and for women, while having dinner with friends, relaxing at home, or out in a sophisticated high-end club.
“One of our greatest opportunities is to reach consumers when they’re at home. We estimate that annual consumption of packaged beverages at home sits at around 100m hectolitres in our core Latin American markets. We can do more to grow beer’s appeal in this setting and the opportunity for us to grow the overall size, and the value of our beverage share of it is significant.
“We have successfully grown beer’s presence in special occasions and when consumers are socialising out of the home. Premiumisation and developing new flavour variants and easier drinking lagers that appeal to a broad, mixed gender audience, will be key drivers in growing beer’s potential in these occasions.”
© FoodBev Media Ltd 2024