SABMiller invests $295m in Peru subsidiary
Business Live - Nov 17th 2011, 10:52
Global brewing giant SABMiller is to invest in a $295 million capital investment programme in its Peruvian subsidiary Backus.
Released over three years, the funds will be used to increase capacity in the business' breweries in Ucayali, Cusco, Lambayeque, Lima and Arequipa. It will also support investment in vehicles, glass bottles and other essential equipment to support future expansion.
Backus is one of the most significant contributors to the Peruvian economy, collecting approximately US$760 million in direct and indirect in taxes in 2010, and employing 7,000 people directly and 22,000 indirectly across the country. The geographical spread of the investment across a number of regions will ensure that many local communities will benefit from job creation and investment in the value chain.
Luis Eduardo Garcia Rosell, interim Backus President, said: "Peru has seen strong growth in recent years and economic forecasts remain positive, with average annual GDP growth of 3.3% predicted until 2020. We believe that continued investment in our operational capacity, in addition to the attractiveness of our brand portfolio and the beer category as a whole, will allow Backus to continue to capitalise on this impressive upward growth trajectory.
"However, it isn't just the company's shareholders that will benefit from our capital investment programme. For every person it directly employs, Backus already supports three Peruvian jobs in the value chain. This further investment demonstrates our continued commitment to local communities, supporting jobs and businesses across the country and promoting economic growth and wealth creation for the benefit of all."
Peru remains an attractive market with strong underlying economic indicators, SABMiller said.
In addition to positive GDP growth forecasts for the next ten years, the population is predicted to grow by 53% between 2000 and 2100. Beer consumption in Peru is currently more than 11m hectolitres per annum, and could rise to as much as 16m hectolitres by 2020.
Per capita consumption stood at 38.2 litres per annum in 2010, which is significantly below consumption rates in Brazil (65.4 litres), Venezuela (77.8 litres) and the USA (79.8 litres).
SABMiller has invested approximately $570 million in Backus in the past five years, supporting its continued growth and development. Today, the company is the second largest contributor to the Latin American division of SABMiller, which provides approximately a third of the group's EBITA.
Backus' strong performance has continued in the first half of the current year, with beer volumes in the six months to 30 September 2011 up 11% on the prior period.
Heineken omits Kenya from new women’s beer
21/05/2013 - 09:13
Heineken will not be launching its sweeter, low-alcohol Radler beer in Kenya. It will instead focus on its flagship brand to grow local market share.
Anheuser-Busch abandons plans to buy Budvar
20/05/2013 - 10:33
Prague - Brewing giant Anheuser-Busch InBev says it no longer has plans to acquire Czech brewer Budejovicky Budvar, with whom it has been fighting a long legal battle over the use of the “Budweiser” brand.
SABmiller Zim subsidiary beats forecast
16/05/2013 - 09:40
Harare - Delta Beverages, the Zimbabwe-based subsidiary of SABMiller [JSE:SAB], continued to defy the odds in the economically ravaged country with forecast-beating earnings for the year ended December 31 2012.
Carlsberg beats profit forecasts
08/05/2013 - 08:04
Copenhagen - Danish brewer Carlsberg's first-quarter operating profit and revenue beat forecasts on Tuesday, as strong beer sales in Asia cushioned sluggish mature European markets and a decline in its former growth driver Russia.
Clark's appointment as SABMiller CEO fast-tracked
30/04/2013 - 07:56
JSE-listed SABMiller announced last week that it had fast-tracked the planned promotion of COO Alan Clark to CEO with immediate effect, after current CEO and executive chairperson Graham Mackay stepped down earlier than anticipated owing to an illness.