By Peter Evans
LONDON-- SABMiller PLC reported a rise in third-quarter revenue
but said its lager volumes fell on weakness in China and falling
demand for midprice beer in the U.S.
The world's second-biggest brewer by sales after Anheuser-Busch
InBev SA said net producer revenue--which accounts for excise and
other taxes--rose 4% in the three months ended Dec. 31, the same
growth rate as a year earlier.
"We continued to drive steady net-producer-revenue growth,
notwithstanding varied local-market performances, as we benefited
from the breadth of our global portfolio of businesses," said Chief
Executive Alan Clark.
SABMiller said leftover stock in China after a rainy summer
meant the company sold less in the country during the quarter and
dragged down overall volumes. Lager volumes across the company fell
1% in the quarter.
In China, SABMiller owns 49% of Snow, the world's biggest beer
brand by volume. The company said volumes in China fell 9% during
the quarter, with "double-digit" declines in the northeast and
central provinces.
Sales in North America, where SABMiller operates through its
MillerCoors joint venture with Molson Coors Brewing Co., fell 1%.
Volumes of Coors Light, a midprice beer, declined in "low single
digits," as many Americans upgraded to pricier brews, SABMiller
said.
Soft drinks, which make up more than 20% of SABMiller's sales by
volume, continued to perform strongly, growing 4% in the quarter.
The company late last year combined soft-drink bottling operations
with Coca-Cola Co. in southern and eastern Africa, part of an
increased focus on nonalcoholic beverages.
But the move toward soft drinks has drawn criticism from some
industry watchers, who say it could affect SABMiller's
profitability.
"In our view, this is dilutive to the group's revenue, margins
and investment case," said James Edwardes Jones, an analyst at RBC
Capital Markets.
Write to Peter Evans at peter.evans@wsj.com
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