During the third quarter ended December 2014, the world’s second biggest brewer, SABMiller’s African businesses continued to grow both in volumes and revenues, CEO Alan Clark said on Wednesday. “We continued to drive steady net producer revenue growth (NPR), notwithstanding varied local market performances, as we benefited from the breadth of our global portfolio of businesses,” Clark said.
SABMiller said the net producer revenue (NPR) growth in Africa grew by 7 percent in the quarter driven by beverage volume growth of 4 percent and continued improvement in the premium category. Lager volumes increased by 3 percent, while soft drinks volumes grew by 5 percent, the group said.
In South Africa, group NPR grew by 6 percent on the back of positive pack and brand mix in lager. Both lager and soft drinks volumes grew by 2 percent, with continued strong growth in Castle Lite. In Tanzania, NPR gained 5 percent bolstered by pricing, positive lager segment mix and growth in wines and spirits.
Lager volumes in Tanzania declined 9 percent reflecting excise-related and other pricing in July 2014. In Mozambique, group NPR surged 26 percent and lager volumes by 21 percent, boosted by strong performance of Castle Lite and a focus on affordability through the Impala brand.
In Zambia NPR grew by 2 percent reflecting price increases in both lager and soft drinks. But lager volumes declined by 11 percent due to the continuing impact of the excise-related price increases in January 2014.
In Nigeria, strong group NPR growth continued, up 33 percent, driven by volume growth of 27 percent supported by market execution and incremental capacity. Group NPR in Zimbabwe declined by 10 percent reflecting continued economic challenges.
Castel delivered high-single digit growth in group NPR, supported by mid-single digit volume growth in both lager and soft drinks. Soft drinks volume growth in Africa was driven by South Africa, Ghana, Nigeria, Zambia and our associate Castel.