SABMiller, which operates 200 beer brands worldwide and recorded US Group revenue of $34.5 billion in 2012, has become a global brewer by "excelling locally", according to Alan Clark, SABMiller chief executive. "Business does not operate in isolation. Our success is linked to that of the communities we serve and to how we respond to society’s changing needs," according to Clark. Clark's comments came in the global brewer's annual report on sustainable development, which detailed SABMiller's impact in various regions around the globe, notingthat 48,000 of the Group's 70,000 employees are trained in alcohol responsibility.
In Europe, SABMiller, which is a founding member of the EU alcohol and health forum, upped commitments during the year to use age verification systems on all online brand platforms, increase the number of brands with on-pack responsible drinking information and to utilize labelling on the importance of avoiding alcohol during pregnancy.
In Latin America, which contributes 32% to group EBITA, SABMiller supported entrepreneurship programs during the year, as well as conducting several studies into alcohol abuse in the region. According to Karl Lippert, president of SABMiller in the region, "Our two biggest concerns are the pattern of consumption in the region - typically more skewed towards high intensity and low frequency - and the presence of a large illegal market." A second study, carried out with the help of Euromonitor International, found that roughly a quarter of the total alcohol market in Latin America was of illegal origin, rising to almost a third of the market in Peru and Ecuador. According to Lippert, where beer is more affordable in Latin America - i.e. as in Panama, "the illegal market tends to be small".
According to Mark Bowman, managing director of SABMiller Africa, "Agriculture is a core element of our African business strategy: this year we sourced half of our agricultural raw materials locally, meeting our target to do so a year early." Last year saw SABMiIller launch the world's first cassava beer in Mozambique. According to Bowman, 'Following our success in Mozambique, we introduced a cassava beer in Ghana and expect to work with as many as 1500 farmers in the first year."
"By using local crops we are able to sell cassava beer at a lower price - typically 70% of the price of a mainstream beer. In Africa, beer is an aspirational, premium product: lowering the price attracts consumers away from informal, unregulated alcohol," according to Bowman. (24 June)
© 2013 - ESM: European Supermarket Magazine by Ellen Lunney
