Dive Brief:
- In SABMiller PLC's year-end earnings, the company reported a slight dip in profit to $3.30 billion, down from $3.38 billion last year. Revenue at constant currencies, however, went up 6%.
- SABMiller cited European currencies' weakness against the dollar and "stagnating lager volumes" as an impact on the year's results, reports The Wall Street Journal.
- However, these hindrances were offset by price increases and consumers' growing demand for premium brands, sales for which increased by 8%. Global labels, such as Peroni and Miller Genuine Draft, saw their sales rise even higher at 16%.
Dive Insight:
SABMiller also reported sales increases in Africa, at 9%, and Latin America, at 7%, which combined comprise about 60% of the company's earnings.
SABMiller, which makes more than 200 beer brands worldwide, is also dipping its toe in the soft drinks market, sales volumes for which rose 8%. This segment has increased by about 4% of the company's volumes, from 17% five years ago to about 21%. This is due in part to partnerships with soda industry bigwigs like Coca-Cola Co., with which SABMiller bottles soft drinks and has created several malt drink brands that the company primarily sells in West Africa.
Though the soft drinks market has tumbled for 10 years straight in the U.S., does SABMiller see something in soda no one else sees?