Proactiveinvestors United Kingdom SABMiller https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom SABMiller RSS feed en Tue, 16 Jul 2019 21:16:03 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - SABMiller and AB InBev investors back £79bn mega-merger ]]> https://www.proactiveinvestors.co.uk/companies/news/166630/sabmiller-and-ab-inbev-investors-back-79bn-mega-merger-166630.html Shareholders in SABMiller (LON:SAB) and Anheuser-Busch InBev have given the green light to a £79bn mega-merger between the pair.

Both sets of investors voted the deal through at respective general meetings, paving the way for the deal to complete on October 10.

The tie-up between the Budweiser owner and the brewer of Peroni and Pilsner Urquell will create the world’s biggest beer company.

Global regulators have already approved the creation of the enlarged group, which will make almost a third of the world's beer and will take the AB InBev title.

AB InBev had to raise its offer several times to get SABMiller to accept it and was forced to up the price again, by a pound to £45 per share, after the UK’s EU referendum vote in June hit sterling.

AB InBev chief executive Carlos Brito said: "We are committed to driving long-term growth and creating value for all our stakeholders."

Stella Artois brewer AB Inbev also makes Budweiser, Corona and Leffe, while Britain-based SABMiller - which holds second position - owns Peroni, Grolsch and Pilsner Urquell beers.

ABI employs about 1,000 people at its UK breweries in Magor, Samlesbury and Mortlake, as well as its company headquarters in Luton. It has at least 200 beer brands.

SABMiller has around 69,000 staff in more than 80 countries, from Australia, Zambia and Colombia to the Czech Republic, South Africa and the US, also producing more than 200 beers.

Formerly known as South African Breweries, SAB acquired US rival Miller Brewing Company in 2002, resulting in the renaming of the group as SABMiller.

A merged group would add AB InBev's dominance of Latin America to SABMiller's strong presence in Africa, as well as their breweries in Asia.

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Wed, 28 Sep 2016 15:28:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/166630/sabmiller-and-ab-inbev-investors-back-79bn-mega-merger-166630.html
<![CDATA[News - Anheuser-Busch InBev lifts SABMiller offer to £79bn ]]> https://www.proactiveinvestors.co.uk/companies/news/128638/anheuser-busch-inbev-lifts-sabmiller-offer-to-79bn-128638.html Stella Artois brewer Anheuser-Busch InBev SA (EBR:ABI) has upped its offer for SABMiller plc (LON:SAB) to allay fears about the impact on the deal of the plunging pound.

ABI has offered to pay £45 per share for SABMiller, up from £44 a share beforehand, valuing the Peroni brewer at £79bn rather than the previous £71bn.

It follows the slump in sterling to 31-year lows following the UK’s referendum vote to leave the EU last month.

In May, SABMiller also revealed a 16% fall in profits as costs rose ahead of the deal.

ABI increased the bid after SABMiller’s chairman talked to his ABI counterpart about the impact on the deal of currency and market movements.

But the pair did not discuss or agree ABI’s revised offer, which the latter said was final.

SABMiller’s sixth-biggest investor, Aberdeen Asset Management, said the revised offer undervalued the company and was unacceptable, according to Bloomberg.

Stella Artois brewer AB Inbev also makes Budweiser, Corona and Leffe, while Britain-based SABMiller - which holds second position - owns Peroni, Grolsch and Pilsner Urquell beers.

ABI employs about 1,000 people at its UK breweries in Magor, Samlesbury and Mortlake, as well as its company headquarters in Luton. It has at least 200 beer brands.

SABMiller has around 69,000 staff in more than 80 countries, from Australia, Zambia and Colombia to the Czech Republic, South Africa and the US, also producing more than 200 beers.

Formerly known as South African Breweries, SAB acquired US rival Miller Brewing Company in 2002, resulting in the renaming of the group as SABMiller.

A merged group would add AB InBev's dominance of Latin America to SABMiller's strong presence in Africa, as well as their breweries in Asia.

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Tue, 26 Jul 2016 12:55:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/128638/anheuser-busch-inbev-lifts-sabmiller-offer-to-79bn-128638.html
<![CDATA[News - SABMiller profits lose fizz as merger costs weigh ]]> https://www.proactiveinvestors.co.uk/companies/news/126076/sabmiller-profits-lose-fizz-as-merger-costs-weigh-126076.html Profits at SABMiller plc (LON:SAB) fell as costs rose ahead of its tie-up with rival Stella Artois maker Anheuser-Busch InBev SA (EBR:ABI).

The Peroni Nastro Azzurro brewer said pre-tax profit in the year to the end of March dropped 16% to US$4.1bn.

It took a US$572 million charge for reducing operations in Angola and war-torn South Sudan and a US$160mln hit from the AB InBev deal.

But group beverage volumes rose 2%, with lager volumes up 1% and soft drink volumes up 6%.

Reported pre-tax earnings before interest and amortisation fell 9% to US$5.8bn.

It said growth accelerated in the year, driven by improving momentum in Latin America, continued strong and well-balanced momentum in Africa and improvements in Australia and Europe in the second half.

Chief executive Alan Clark said: “We are expanding our exposure to growing markets and building the optimum portfolio of lager, soft drinks and other alcoholic beverages to capture growth.”

Shares rose 19.5p to 4229.5p in early London trading.

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Wed, 18 May 2016 09:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/126076/sabmiller-profits-lose-fizz-as-merger-costs-weigh-126076.html
<![CDATA[News - SABMiller fizzes after £71bn takeover deal with AB Inbev ]]> https://www.proactiveinvestors.co.uk/companies/news/117349/sabmiller-fizzes-after-71bn-takeover-deal-with-ab-inbev-117349.html Shares in SABMiller (LON:SAB) frothed up on Wednesday after Anheuser-Busch InBev formally tabled a £71bn takeover bid for its rival.

The stock fizzed up 71p, or 1.8%, to 4047p in London while AB Inbev's shares rose €2.10 to €113.30 in Brussels.

 AB Inbev, which makes Stella Artois, said the long-awaited deal would value Peroni brewer SABMiller at £44 per share.

The Belgian group said the deal would create a company with operations in virtually every major beer market and provide more choice for drinkers.

It would strengthen AB InBev's position in key emerging regions with strong growth prospects such as Asia, Central and South America, and Africa.

AB Inbev said in a statement: "In short, AB InBev believes more can be achieved together than apart."

But the pair are likely to have to sell off large parts of their operations to gain approval from competition regulators.

AB InBev has already agreed to the sale of SABMiller's 58% interest in US and Puerto Rico joint venture MillerCoors to partner Molson Coors for US$12bn.

The deal will give Molson Coors, which has a UK brewery in Burton-on-Trent in Staffordshire, full control of the company that makes Coors Light.

Market analyst Josh Mahony at spread-betting firm IG said: "The resulting mega brewer would be head and shoulders above any other firm in the sector, and this is questionable in terms of the impact it would have upon competition.

"However, given that SABMiller has focused its efforts into Latin America and Africa, this is arguably a deal which would benefit shareholders rather than simply management."

The formal proposal follows a string of offers from AB Inbev that SABMiller turned down on the grounds that they undervalued it.

AB Inbev chief executive Carlos Brito said: "We believe this combination will generate significant growth opportunities and create enhanced value to the benefit of all stakeholders."

SABMiller chief executive Alan Clark said: "The SABMiller story is a simply amazing achievement, and everyone who has been a part of it should feel immensely proud of the value they have helped create.

"I am sure the next chapter will bring new opportunities for exceptional success."

Stella Artois brewer AB Inbev also makes Budweiser, Corona and Leffe, while Britain-based SABMiller - which holds second position - owns Peroni, Grolsch and Pilsner Urquell beers.

ABI employs about 1,000 people at its UK breweries in Magor, Samlesbury and Mortlake, as well as its company headquarters in Luton. It has at least 200 beer brands.

SABMiller has around 69,000 staff in more than 80 countries, from Australia, Zambia and Colombia to the Czech Republic, South Africa and the US, also producing more than 200 beers.

Formerly known as South African Breweries, SAB acquired US rival Miller Brewing Company in 2002, resulting in the renaming of the group as SABMiller.

A merged group would be worth about £177bn and would add AB InBev's dominance of Latin America to SABMiller's strong presence in Africa, as well as their breweries in Asia.

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Wed, 11 Nov 2015 16:40:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/117349/sabmiller-fizzes-after-71bn-takeover-deal-with-ab-inbev-117349.html
<![CDATA[News - AB Inbev and SABMiller to sell MillerCoors ]]> https://www.proactiveinvestors.co.uk/companies/news/119058/ab-inbev-and-sabmiller-to-sell-millercoors-119058.html Anheuser-Busch InBev and SABMiller are to sell their MillerCoors US joint venture for US12bn in a bid to get their mega-merger approved.

The pair said they had already agreed to sell the venture to partner Molson Coors as part of efforts to persuade regulators to give their £71bn tie-up the green light.

The merger will create the world's biggest brewer with operations in virtually every major beer market - potentially sparking competition concerns.

In a statement confirming AB Inbev's offer, the two brewers said: "While the companies' geographic footprints are largely complementary, AB InBev and SABMiller are committed to working with the relevant authorities in seeking to bring all potential regulatory reviews to a timely and appropriate resolution."

Josh Mahony at spread-betting firm IG said: "The resulting mega brewer would be head and shoulders above any other firm in the sector, and this is questionable in terms of the impact it would have upon competition.

"However, given that SABMiller has focused its efforts into Latin America and Africa, this is arguably a deal which would benefit shareholders rather than simply management."

AB Inbev, which makes Stella Artois, said the long-awaited takeover of Peroni brewer SABMiller would value it at £44 per share.

It would strengthen AB InBev's position in key emerging regions with strong growth prospects such as Asia, Central and South America, and Africa.

AB Inbev said in a statement: "In short, AB InBev believes more can be achieved together than apart."

The formal proposal follows a string of offers from AB Inbev that SABMiller turned down on the grounds that they undervalued it.

AB Inbev chief executive Carlos Brito said: "We believe this combination will generate significant growth opportunities and create enhanced value to the benefit of all stakeholders."

SABMiller chief executive Alan Clark said: "The SABMiller story is a simply amazing achievement, and everyone who has been a part of it should feel immensely proud of the value they have helped create.

"I am sure the next chapter will bring new opportunities for exceptional success."

Stella Artois brewer AB Inbev also makes Budweiser, Corona and Leffe, while Britain-based SABMiller - which holds second position - owns Peroni, Grolsch and Pilsner Urquell beers.

ABI employs about 1,000 people at its UK breweries in Magor, Samlesbury and Mortlake, as well as its company headquarters in Luton. It has at least 200 beer brands.

SABMiller has around 69,000 staff in more than 80 countries, from Australia, Zambia and Colombia to the Czech Republic, South Africa and the US, also producing more than 200 beers.

Formerly known as South African Breweries, SAB acquired US rival Miller Brewing Company in 2002, resulting in the renaming of the group as SABMiller.

A merged group would be worth about £177bn and would add AB InBev's dominance of Latin America to SABMiller's strong presence in Africa, as well as their breweries in Asia.

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Wed, 11 Nov 2015 16:10:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/119058/ab-inbev-and-sabmiller-to-sell-millercoors-119058.html
<![CDATA[News - SABMiller and AB Inbev win extension to bid deadline ]]> https://www.proactiveinvestors.co.uk/companies/news/117052/sabmiller-and-ab-inbev-win-extension-to-bid-deadline-117052.html SABMiller (LON:SAB) and Anheuser-Busch InBev (NYSE:BUD) have secured a further extension to the deadline for firming up their planned £68bn merger.

The two brewers said the UK's Takeover Panel had extended the deadline by which AB Inbev must make a firm offer for SABMiller until 1700 on November 11.

On October 28, the pair secured an extension of the deadline until 1700 today, saying they needed more time for talks.

A statement from the companies said: "Since that announcement, SABMiller and AB InBev have made good progress in agreeing the terms of the possible offer which will be set out in detail in any announcement of a firm intention to make an offer."

Stella Artois brewer AB Inbev also makes Budweiser, Corona and Leffe, while Britain-based SABMiller - which holds second position - owns Peroni, Grolsch and Pilsner Urquell beers.

ABI employs about 1,000 people at its UK breweries in Magor, Samlesbury and Mortlake, as well as its company headquarters in Luton. It has at least 200 beer brands.

SABMiller has around 69,000 staff in more than 80 countries, from Australia, Zambia and Colombia to the Czech Republic, South Africa and the US, also producing more than 200 beers.

Formerly known as South African Breweries, SAB acquired US rival Miller Brewing Company in 2002, resulting in the renaming of the group as SABMiller.

A merged group would be worth about £177bn and would add AB InBev's dominance of Latin America to SABMiller's strong presence in Africa, as well as their breweries in Asia.

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Wed, 04 Nov 2015 08:15:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/117052/sabmiller-and-ab-inbev-win-extension-to-bid-deadline-117052.html
<![CDATA[News - AB Inbev's £68bn bid for SABMiller may hit snags ]]> https://www.proactiveinvestors.co.uk/companies/news/116140/ab-inbev-s-68bn-bid-for-sabmiller-may-hit-snags-116140.html SABMiller (LON:SAB and rival Anheuser-Busch InBev (ABI) (NYSE:BUD) have agreed a £68bn merger, but watchdogs may challenge it.

SABMiller, the brewer of Peroni Nastro Azzurro, and Stella Artois maker ABI have agreed a £44 per share cash deal with a partial share alternative for 41% of SABMiller's shares.

The all-cash offer represents a premium of about 50% to SABMiller's closing share price of £29.34 on September 14.

ABI is determined to get its hands on its rival to grab more of the global beer market, where it believes growth will come from acquisitions rather than selling more beer.

But questions remain about whether regulators would allow the deal, given the combined group is thought likely to make up about half the profits of the global beer industry.

AJ Bell investment director Russ Mould said: "A tie-up between the two groups would create the world’s biggest brewer, but not before severe scrutiny by anti-trust regulators, particularly in the US."

Michael Hewson, chief market analyst at CMC Markets, said: "While we now have a tentative agreement and a deal extension to October 28 with a £3bn break clause, payable by AB InBev if the deal doesn’t proceed, the combined company will still have to overcome a host of regulatory obstacles which is likely to prompt a number of disposals in China and the US."

The Belgian brewer of Stella Artois made the revised approach to SABMiller's board on Monday.

The group did it privately in the hope of persuading SABMiller to take part in talks, Britain's Sky News cited people close to the situation as saying, as it was under time pressure to act before a so-called 'put-up-or-shut-up deadline' this Wednesday.

SABMiller had already turned down a £42.15 approach and two previous proposals on the grounds that they undervalued the company.

ABI also makes Budweiser and Corona, while Britain-based SABMiller - which holds second position - owns Peroni, Grolsch and Pilsner Urquell beers.

ABI employs about 1,000 people at its UK breweries in Magor, Samlesbury and Mortlake, as well as its company headquarters in Luton. It has at least 200 beer brands.

SABMiller has around 69,000 staff in more than 80 countries, from Australia, Zambia and Colombia to the Czech Republic, South Africa and the US, also producing more than 200 beers.

Formerly known as South African Breweries, SAB acquired US rival Miller Brewing Company in 2002, resulting in the renaming of the group as SABMiller.

A merged group would be worth about £177bn and would add AB InBev's dominance of Latin America to SABMiller's strong presence in Africa, as well as their breweries in Asia.

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Tue, 13 Oct 2015 16:05:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/116140/ab-inbev-s-68bn-bid-for-sabmiller-may-hit-snags-116140.html
<![CDATA[News - Anheuser-Busch Inbev lifts SABMiller bid to £70bn ]]> https://www.proactiveinvestors.co.uk/companies/news/116091/anheuser-busch-inbev-lifts-sabmiller-bid-to-70bn-116091.html Brewer Anheuser‑Busch InBev (ABI) (NYSE:BUD) (Euronext:ABI) has increased its takeover bid for rival SAB Miller (LON:SAB) to £70bn.

ABI has upped the £42.15 per share or £65bn it proposed offering for the South African brewer of Peroni to £43.50 a share

It made the cash offer at a 48% premium to SABMiller's share price, but a partial share alternative is available at a 33% premium for about 41% of SABMiller's shares.

The Belgian brewer of Stella Artois made the revised approach to SABMiller's board on Monday.

The group did it privately in the hope of persuading SABMiller to take part in talks, Britain's Sky News cited people close to the situation as saying.

It must act before a so-called put-up-or-shut-up deadline this Wednesday.

ABI is determined to get its hands on its rival to grab more of the global beer market, where it believes growth will come from acquisitions rather than selling more beer. 

But experts cautioned it against overpaying, saying constant hikes in the offer price will reduce the value of the savings from the deal.

John Colley, of Warwick Business School, said: "ABI is being forced to transfer many of the synergy benefits to SABMiller’s shareholders through constantly raising the price.

"The global beer market overall is largely flat and in some regions is declining as other beverages such as wine continue to penetrate.

"Micro-brewers and their highly differentiated cask ales also continue to make progress.

"As a consequence cost, product and distribution rationalisation become an attractive way of increasing shareholder returns. That is provided ABI does not pay too much for SABMiller."

SAB has already turned down the £42.15 approach and two previous proposals on the grounds that they undervalued the company.

US tobacco firm Altria, which owns 27% of SABMiller, has backed ABI but the Santo Domingo family, which has a 14% stake, has supported the board.

Meanwhile, Reuters reported that SABMiller's fourth largest shareholder rejected ABI's third offer as too low.

"We have confidence in the board and we will rely on their judgement. They have said the price is too low and we agree with them," the news agency quoted Dan Matjila, chief executive of Public Investment Corporation, which owns about 3% of SABMiller, as saying.

SABMiller shares fell 8.5p to 3660p in early London trading. ABI's stock dropped 0.04% to €98.26.

ABI also makes Budweiser and Corona, while Britain-based SABMiller - which holds second position - owns Peroni, Grolsch and Pilsner Urquell beers.

ABI employs about 1,000 people at its UK breweries in Magor, Samlesbury and Mortlake, as well as its company headquarters in Luton. It has at least 200 beer brands.

SABMiller has around 69,000 staff in more than 80 countries, from Australia, Zambia and Colombia to the Czech Republic, South Africa and the US, also producing more than 200 beers.

Formerly known as South African Breweries, SAB acquired US rival Miller Brewing Company in 2002, resulting in the renaming of the group as SABMiller.

A merged group would be worth about £177bn and would add AB InBev's dominance of Latin America to SABMiller's strong presence in Africa, as well as their breweries in Asia.

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Mon, 12 Oct 2015 15:40:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/116091/anheuser-busch-inbev-lifts-sabmiller-bid-to-70bn-116091.html
<![CDATA[News - AB Inbev calls on SABMiller shareholders to put squeeze on ]]> https://www.proactiveinvestors.co.uk/companies/news/115949/ab-inbev-calls-on-sabmiller-shareholders-to-put-squeeze-on-115949.html Belgian brewing powerhouse Anheuser-Busch InBev is turning the screw on the board of its bid target SABMiller (LON:SAB).

The world's largest beer maker said SABMiller's reason for rebuffing ABInbev's indicative £42.15 a share bid “lacks credibility” and pointed out US cigarettes firm Altria, which owns 27% of SABMiller's shares, had already come out in support of the merger.

SABMiller's second largest shareholder, with 14% of the shares, BevCo (the investment vehicle of the Santo Domingo family), has not backed the ABInbev approach.

When reports of the merger first broke, it was suggested that the board of SABMiller would be amenable to becoming part of the Belgian group, but as is often the case in contested takeover battles, relations between the two companies look set to deteriorate rapidly.

On Wednesday, SABMiller knocked back ABInbev's third indicative offer – the first two were at £38 and £42 a share, respectively – saying the terms “very substantially” undervalue SABMiller, which counts Blue Moon, Carling Black Label, Coors, Miller Lite and Peroni among its brands.

ABInbev's chief executive, Carlos Brito, went over the head of the SABMiller directors and appealed directly to shareholders to apply pressure on SABMiller to come to the negotiating table.

He asked: “How long will it be before shareholders see a value of over £42 in the absence of an offer from AB InBev?

Shares in SABMiller currently trade at £36.30 and were at half that level at the beginning of the decade, so if previous performance is any guide to future performance – which it isn't – the answer to Brito's rhetorical question is: not long.

Broker Investec continues to recommend sitting on the sidelines, and asserts there is limited down side should ABI walk away.

“The robust nature of the SAB Board’s rejection of ABI’s public offer suggests the two parties are further apart on price than most (ourselves included) had anticipated. Uncertainty is also exacerbated by a lack of clarity on BevCo’s stance, as it currently has not given ABI its support. However, the door is open now for SAB minority shareholders to more freely engage with its board - we assume some shareholders may be wary of spurning a 44%+ cash premium in the currently challenging operating environment. Similarly, ABI is better placed to test the market as to the level at which SAB holders would support a deal,” the broker said.

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Thu, 08 Oct 2015 14:42:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/115949/ab-inbev-calls-on-sabmiller-shareholders-to-put-squeeze-on-115949.html
<![CDATA[News - SABMiller rebuffs Anheuser-Busch Inbev for third time ]]> https://www.proactiveinvestors.co.uk/companies/news/114929/sabmiller-rebuffs-anheuser-busch-inbev-for-third-time-114929.html Peroni brewer SABMiller (LON:SAB) has rebuffed a third takeover bid from rival Anheuser-Busch InBev (ABI).

SABMiller said the US$104bn or £42.15 per share cash proposal from the producer of Stella Artois was inadequate.

The news follows SABMiller's rejection of two previous cash bids from ABI, the first at £38 per share and the second at £40 per share.

SABMiller said in a statement: "The board, excluding the directors nominated by Altria Group Inc., has unanimously rejected the £42.15 proposal as it still very substantially undervalues SABMiller."

Shares in SABMiller rose 22.5p to 3644.5p. ABI's stock also gained 1.79%.

Broker Shore Capital reduced its recommendation on SABMiller to hold from buy at a target price of 3705p.

The broker's analyst Phil Carroll said: "We believe this represents a good deal for SABMiller shareholders and ultimately we expect a deal to be agreed, although the dance could continue for a while yet.

"Given the bounce in the share price today, we downgrade our buy recommendation to hold."

Earlier, ABI had said it was disappointed at SABMiller's rejection of its first two bids "without any meaningful engagement".

ABI said it believed its latest proposal should be highly attractive to SABMiller shareholders and provided an extremely compelling opportunity.

A merger would create a global beer company with revenue of US$64bn and underlying pre-tax earnings of US$24bn and a presence in virtually every major beer market.

ABI chief executive Carlos Brito said: "By bringing together our rich heritage, brands and people we would provide more opportunities for consumers to taste and enjoy the world's best beers.

"Put simply, we believe we can achieve more together than each of us could separately, bringing more beers to more people and enhancing value for all of our stakeholders."

On Tuesday, SABMiller said strong demand for brands such as Aguila Light and Poker in Colombia and Castle Lite in South Africa drove up beverage and lager volumes by 5%.

It brought forward its trading update for the six months to September 30 citing a need to ensure "timely release of trading information to the market", given news of the ABI interest.

Belgium's ABI - the world's biggest brewer - also makes Budweiser and Corona, while UK-based SABMiller - which holds second position - owns Peroni, Grolsch and Pilsner Urquell beers.

ABI employs about 1,000 people at its UK breweries in Magor, Samlesbury and Mortlake, as well as its company headquarters in Luton. It has at least 200 beer brands.

SABMiller has around 69,000 staff in more than 80 countries, from Australia, Zambia and Colombia to the Czech Republic, South Africa and the US, also producing more than 200 beers.

Formerly known as South African Breweries, SAB acquired US rival Miller Brewing Company in 2002, resulting in the renaming of the group as SABMiller.

A merged group would be worth about £177bn and would add AB InBev's dominance of Latin America to SABMiller's strong presence in Africa, as well as their breweries in Asia.

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Wed, 07 Oct 2015 15:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/114929/sabmiller-rebuffs-anheuser-busch-inbev-for-third-time-114929.html
<![CDATA[News - African and Latin American lager sales lift SABMiller ]]> https://www.proactiveinvestors.co.uk/companies/news/114396/african-and-latin-american-lager-sales-lift-sabmiller-114396.html Lager drinkers in Africa and Latin America have helped takeover target SABMiller (LON:SAB) to serve up faster second quarter growth.

SAB Miller said strong demand for brands such as Aguila Light and Poker in Colombia and Castle Lite in South Africa drove up beverage and lager volumes by 5%.

The performance is likely to put pressure on suitor Anheuser-Busch InBev (ABI) to bid high for the group after reports last month suggested the pair were in takeover talks.

Chief executive Alan Clark said: "While adverse currency movements have materially impacted our reported results, we have a strong business with exceptional long term prospects."

Overall net producer revenue (NPR) and beverage volumes rose 6% and 2% respectively in the period.

But continued depreciation of key operating currencies against the US dollar hit reported performance with reported group NPR down 9% in the quarter and the half.

Solid relative performances in the US, Australia and parts of Europe came against a challenging market backdrop.

In Europe, good weather fuelled higher revenue but a weak showing in Poland offset gains in other markets such as the UK, where Peroni did well.

Associate Anadolu Efes continued to face a beer market decline in Russia, geopolitical uncertainty in Ukraine, and the economic slowdown in Turkey, which affected soft drink and beer demand.

SABMiller brought forward its trading update for the six months to September 30.

It attributed that to a need to ensure "timely release of trading information to the market" during an offer period sparked by news last month that ABI was considering making an offer.

The pair reportedly have begun talks and SABMiller, which makes Peroni lager, was said to be "not unreceptive" to a deal.

But ABI has decided not to go hostile with any bid, the New York Post cited an unidentified food executive on Tuesday as saying.

ABI needs to make a bid or walk away by a so-called "put-up-or-shut-up" deadline of 1700 on October 14.

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Tue, 06 Oct 2015 07:45:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/114396/african-and-latin-american-lager-sales-lift-sabmiller-114396.html
<![CDATA[News - Anheuser-Busch Inbev mulling US$106bn bid for SABMiller ]]> https://www.proactiveinvestors.co.uk/companies/news/111186/anheuser-busch-inbev-mulling-us106bn-bid-for-sabmiller-111186.html Budweiser brewer Anheuser-Busch InBev (ABI) is tipped to offer US$106bn for rival SABMiller (LON:SAB) soon in the latest consolidation move in the global beer industry.

The two brewers have begun talks and SABMiller, which makes Peroni lager, is said to be "not unreceptive" to a deal, the Sunday Times cited sources as saying.

Earlier this month, SABMiller said ABI had told it that it planned to make a proposal to acquire the company. Both companies declined to comment.

ABI needs to make a bid or walk away by a so-called "put-up-or-shut-up" deadline of 1700 on October 14.

If a deal went through, it is said to be likely to represent the sixth largest in corporate history and could result in a company brewing about a third of the world's beer.

ABI is believed to have been interested in SABMiller for more than a decade, although there has been speculation that SABMiller could still buy a rival to fend off a bid.

In September, Dutch brewer Heineken rejected a takeover offer from SABMiller.

ABI is thought to want to buy SABMiller to boost its presence in Asia-Pacific, in particular China. A merged group is said to be likely to be worth about $275bn.

Analysts say the deal is also attractive to ABI because it is struggling to expand by making more beer itself.

Financial data group Markit said ABI may have to rebase its dividend to fund an acquisition of SABMiller.

Broker Canaccord Genuity said the deal could trigger competition concerns as the pair have a combined volume market share in China of 41%, but remedies could be found.

It has been reported that ABI might have to offload its Molson Coors joint venture in the US.

As well as Budweiser, Belgium's ABI - the world's biggest brewer - makes Stella Artois and Corona.

UK-based SABMiller - which holds second position - also owns Grolsch and Pilsner Urquell.

ABI employs about 1,000 people at its UK breweries in Magor, Samlesbury and Mortlake, as well as its company headquarters in Luton. It has at least 200 beer brands.

The company was created in 2004 when Brazil’s biggest brewer Ambev bought Belgium’s Interbrew.

The merged firm later bought Budweiser owner Anheuser-Busch in 2008 for £33bn.

SABMiller has about 69,000 staff in more than 80 countries, from Australia, Zambia and Colombia to the Czech Republic, South Africa and the US, also producing more than 200 beers.

Formerly known as South African Breweries, SAB acquired US rival Miller Brewing Company in 2002, resulting in the renaming of the group as SABMiller.

A merged group would be worth about £177bn and would add ABI's dominance of Latin America to SABMiller's strong presence in Africa, as well as their breweries in Asia.

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Mon, 28 Sep 2015 11:10:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/111186/anheuser-busch-inbev-mulling-us106bn-bid-for-sabmiller-111186.html
<![CDATA[News - Rugby World Cup won't add much to economy reckons IG ]]> https://www.proactiveinvestors.co.uk/companies/news/110916/rugby-world-cup-won-t-add-much-to-economy-reckons-ig-110916.html Major sporting events are often trumpeted as economy boosting occasions, usually by the sporting bodies running them.

The reaction to London winning the Olympic bid back in 2005, for example, was one of fervour, excitement and tremendous optimism.

But sporting events might not contribute as much to the host’s economy, as you might think, according to market analyst IG.

With the Rugby World Cup set to kick-off today, with England facing Fiji at 8pm, Chris Beauchamp at IG warns that while global sporting events, are seen as economy boosting, the long-term effect can be minimal.

“The economic effect on the economy will be less than has been touted,” he said.

Tourism in the UK brings in around £126bn each year, employing over 3mln workers, or around 9.6% of the total workforce – according to Visit Britain.

The Rugby World Cup is expected to add just under £1bn during its running period, with 41,000 jobs created.

Beauchamp also mentions that workers overseas will have to stay up at unsociable hours to watch the rugby, reducing productivity.

Closer to home, productivity in the city will undoubtedly drop as people use the rugby as an excuse for a jolly good knees-up.

On the plus side, Twickenham is to get a revamp, with £74mln of the £85mln put aside for infrastructure going on the ‘home of England rugby’.

Meanwhile, it is unlikely to have much effect on markets either.

“Whilst UK investors might witness some short term movement in the markets following the Rugby World Cup, history suggests that the true lasting value on the UK economy is likely to be limited,” Beauchamp said.

In the short term companies such as SABMiler (LON:SAB) and Domino’s Pizza may benefit from an uptick in sales, he added, but the true impact will only be known months later when trading updates statements are made.

“Even then, aside from a few warm words in the accompanying statement, the overall impact is likely to be modest at best,” Beauchamp noted.

It seems the Rugby World Cup will be a spectacle, but don’t expect any economic miracles on the back of it.

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Fri, 18 Sep 2015 12:02:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/110916/rugby-world-cup-won-t-add-much-to-economy-reckons-ig-110916.html
<![CDATA[News - AB Inbev makes play for rival brewer SABMiller ]]> https://www.proactiveinvestors.co.uk/companies/news/110844/ab-inbev-makes-play-for-rival-brewer-sabmiller-110844.html ---- Adds background panel about brewers ---

SABMiller (LON:SAB) has confirmed that rival Anheuser-Busch InBev has made a takeover approach to the South African brewer.

Reacting to press speculation, SABMiller said AB Inbev had told it that it planned to make a proposal to acquire the company, which makes Peroni lager.

AB Inbev needs to make a bid or walk away by a so-called "put-up-or-shut-up" deadline of 1700 on October 14.

SABMiller added that it had not yet received a proposal, its board had no details of any potential offer terms and there was no guarantee a bid would materialise.

"The board of SABMiller will review and respond as appropriate to any proposal which might be made," SAB Miller said.

"In the interim, shareholders are strongly advised to retain their shares and to take no action."

Inbev has been rumoured to be interested in SABMiller for more than 10 years, although there has been speculation that SABMiller could still buy a rival to fend off a bid.

In September, Dutch brewer Heineken rejected a takeover offer from SABMiller, which is now rumoured to be eyeing Johnnie Walker whisky and Guinness group Diageo (LON:DGE).

Another intriguing market theory is that cash-rich Diageo could become a target for US activist investors who would buy the group and break it up.

Canaccord Genuity predicted AB Inbev's approach for SAB Miller in a note last week.

The broker's Eddy Hargreaves said AB Inbev was interested in SAB Miller to boost its presence in Asia-Pacific, in particular China.

He said the deal could trigger competition concerns as the pair have a combined volume market share in China of 41%.

"Anti-trust considerations would be an issue - but we continue to think that more than one acceptable solution could be found," Hargreaves said.

He added: "We think the group is well-positioned for acceleration in EBITDA growth in China, as well as elsewhere in APAC (especially Vietnam and India - and also in S Korea, where the potential to improve a weaker position in the premium segment was described as "huge")."

Who they are and what they do

Belgium's Anheuser-Busch InBev - the world's biggest brewer - makes Budweiser, Stella Artois and Corona, while Britain-based SABMiller - which holds second position - owns Peroni, Grolsch and Pilsner Urquell beers.

AB Inbev employs about 1,000 people at its UK breweries in Magor, Samlesbury and Mortlake, as well as its company headquarters in Luton. It has at least 200 beer brands.

SABMiller has around 69,000 staff in more than 80 countries, from Australia, Zambia and Colombia to the Czech Republic, South Africa and the US, also producing more than 200 beers.

Formerly known as South African Breweries, SAB acquired US rival Miller Brewing Company in 2002, resulting in the renaming of the group as SABMiller.

A merged group would be worth about £177bn and would add AB InBev's dominance of Latin America to SABMiller's strong presence in Africa, as well as their breweries in Asia.

 

 

 

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Wed, 16 Sep 2015 15:15:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/110844/ab-inbev-makes-play-for-rival-brewer-sabmiller-110844.html
<![CDATA[News - SABMiller set for a forex hit, though sales are seen higher ]]> https://www.proactiveinvestors.co.uk/companies/news/110086/sabmiller-set-for-a-forex-hit-though-sales-are-seen-higher-110086.html Nomura said it expects SABMiller (LON:SAB) to ‘accelerate’ beer sales in its second quarter and it says the softer volumes in the first three months of the year are an ‘inflection point’.

Foreign exchange rate, however, are a hinderence and cause the investment bank to reduce its target price to 3800p from 4000p (current price 3290p).

According to analyst Edward Mundy the brewer, which owns the South African brand Castle, will take a 6% hit on earnings per share as a result of adverse currency moves with the rand and the Colobian peso particularly affected.

Despite the downgraded price target Nomura has a ‘buy’ rating, but it is also has a ‘bearish’ rating on the sector overall.

Investors may this morning also look to Scandinavian larger rival Carlsberg which does forecasts, but, with a profit warning today, they’re not the best in the world.

Exane BNP Paribas appears to have taken a shine to Signet Jewellery (LON:SIG)  which it has upgraded to  ‘outperform’ from ‘neutral’.

Oil and gas engineer Wood Group (LON:WG.)  had its price targets snipped after Tuesday’s interim results revealed a drop in profits.

Deutsche Bank, which reduces it target to 740p from 805p, is still keeping a ‘buy’ recommendation and analyst Sebastian Yoshida says the company stands out from its peer group due to its “defensive end-market exposure, flexible cost base and capacity to continue to generate free cash flow (FCF) in the downcycle.”

Citigroup remains ‘neutral’ in its view of Wood, though its target reduces to 580p from 600p.

HR and recruitment firm Robert Walters Plc (LON:RWA) had its target upgrade to 500p from 420p by Credit Suisse, which already has an ‘outperform’ rating for the company.

The Swiss investment bank said the upgrade primarily represents the impact of a lower tax rate for the recruiter.

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Wed, 19 Aug 2015 09:21:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/110086/sabmiller-set-for-a-forex-hit-though-sales-are-seen-higher-110086.html
<![CDATA[News - SABMiller lager sales lose their fizz ]]> https://www.proactiveinvestors.co.uk/companies/news/109274/sabmiller-lager-sales-lose-their-fizz-109274.html European drinkers lost their thirst for lager in the first quarter, limiting the impact of a better performance in emerging markets by brewer SABMiller (LON:SAB).

The Peroni Nastro Azzurro brewer said lager volumes fell 1% in the three months to June 30, partly offsetting a 4% rise in soft drink demand.

Revenue and volumes grew strongly in Latin America and Africa in the quarter, led by Colombia and the group's Aguila Light and Miller Lite brands.

In Africa, lager and soft drinks volumes rose 4%. 

But in Europe, beverage volumes fell 6%, driven by a lager volume decline of 8%.

In the UK, continued growth of Peroni was offset by declines in demand for the company's Polish brands.

In Poland, the company stopped supplying a leading convenience chain and faced price competition, hitting net producer revenue (NPR) by 17%.

SABMiller said continued weakness in lager volumes was mainly driven by geopolitical uncertainty in Ukraine and a beer market decline in Russia.

Overall group NPR rose 3% on level beverage volumes, reflecting group NPR per hectolitre (hl) growth in all regions.

Chief executive Alan Clark said: ""Both revenue and volumes grew strongly in Latin America and Africa in the quarter, tempered in particular by a challenging quarter in our key European markets where the trading environment remains difficult and softer volumes in China.

"We continue to make good progress in our strategy of driving top line growth which is reflected in the growth of revenue per hectolitre across our regions."

Shares rose 3p to 3442.5p.

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Thu, 23 Jul 2015 08:55:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/109274/sabmiller-lager-sales-lose-their-fizz-109274.html
<![CDATA[News - SABMiller set to rediscover entrepreneurial spirit ]]> https://www.proactiveinvestors.co.uk/companies/news/109197/sabmiller-set-to-rediscover-entrepreneurial-spirit-109197.html Under new management SABMiller (LON:SAB) is a ‘buy’ according to Nomura analyst Edward Mundy who upgrades from ‘hold’.

The upgrade saw SABMiller shares among the FTSE 100’s top riser on Tuesday Morning.

“We see potential for the company to rediscover its entrepreneurial spirit,” he said in a note.

Mundy also highlighted the brewer’s strong balance sheet which could provide the ‘firepower’ for acquisitions to expand the portfolio and add to existing brands such as Miller, Coors, Fosters and Bulmers (to name just a few).

Nomura’s new price target for SABMiller is 4,000p, up from 3,000p, and it suggests some 13% upside to the current price of 3,530p.

Mundy also downgrade beer rival – and often mooted M&A suitor – Anheuser-Busch InBev to ‘neutral’ from ‘buy’, after the Budweiser and Stella Artois owner’s stock has now risen to the analyst’s target.

“Although we remain positive on the scope for longer-term growth at ABI, we see a lack of obvious near-term catalysts to drive continued share price momentum and step back after the stock’s strong run,” he said.

Elsewhere in the City, Jefferies repeated its ‘buy’ recommendation for electrical and white goods retailer AO World (LON:AO.) but cut in half its price target to 192p from 410p.

Jefferies also adjusted price target for software firm Aveva (LON:AVV) to 2,580p from 1,840p, whilst Credit Suisse did similar with its target lifted to 2,600p from 2,200p.

Goldman Sachs nudged higher its target for Sports Direct International (LON:SPD) to 965p from 950p, and repeated a ‘buy’ recommendation.

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Tue, 21 Jul 2015 10:33:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/109197/sabmiller-set-to-rediscover-entrepreneurial-spirit-109197.html
<![CDATA[News - SABMiller joins craft beer craze with Meantime move ]]> https://www.proactiveinvestors.co.uk/companies/news/106798/sabmiller-joins-craft-beer-craze-with-meantime-move-106798.html Peroni owner SABMiller (LON:SAB) is quenching its thirst for craft beers with a move to buy London-based brewer Meantime.

The beer giant told investors this morning it will snap up the Greenwich-based craft beer company, known for its London Lager and London Pale Ale.

Volumes of beer sales at Meantime grew by 58% in 2014, outpacing the UK beer market's 1% growth during the same period.

That makes the firm, formed in 1999 by Alastair Hook, one of the top-performing modern craft breweries in the UK.

SABMiller said it plans to grow sales of Meantime's beers nationally and explore export opportunities in its European markets under the leadership of Meantime boss Nick Miller.

No financial terms were disclosed, but the purchase – expcted to close in June - includes Meantime's retail sites, including the Tasting Rooms and the brewery shop in Greenwich and the Brewery Fresh tank beer concept, which is now in 26 pubs across London.

The takeover comes after SABMiller reported flat full-year sales in 2014 at US$22.1bn while profits inched ahead to US$4.83bn from US$4.82bn.

Earlier this week, SAB’s chief executive Alan Clark said the firm would expand its market.

He also said that the company would attempt to broaden beer's appeal "so it's the drink of choice for more people on a greater variety of occasions".


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Fri, 15 May 2015 07:41:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/106798/sabmiller-joins-craft-beer-craze-with-meantime-move-106798.html
<![CDATA[News - SABMiller beats estimates despite flat year ]]> https://www.proactiveinvestors.co.uk/companies/news/106703/sabmiller-beats-estimates-despite-flat-year-106703.html Brewing giant SAB Miller (LON:SAB) is having to change focus to accommodate the craze for craft–styles over mainstream beer.

The group saw a flat year for sales in 2014 at US$22.1bn, despite strong showings in Africa and Latin American, while profits inched ahead to US$4.83bn from US$4.82bn.

Revenue dipped 1% to US$2.2bn but was 2% ahead of consensus estimates while earnings before interest, taxes and amortisation (EBITA) grew by 6%, 3% ahead of estimates.

“We are having to expand our market and move away from premium beers” said Alan Clark, chief executive.

In Italy, traditional premium lagers Peroni and Nastro Azzurro struggled but the new Peroni Chill Lemon Radler brand gained in popularity.

Premium beers did better in the UK, with revenue grew of 4%, driven by the double digit growth of Peroni. 

In Eastern Europe, speciality pilsners boosted revenues as mainstream brands continued to struggle.

The company, which struggled in more established markets, said it had been hit by “adverse translational foreign exchange effects”.

Clark said: “We anticipate that the trading environment will remain challenging and that our business will continue to be impacted by currency volatility.”

But he said he is confident the strategy, including the move away from premium beers, would drive long-term growth.


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Wed, 13 May 2015 09:05:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/106703/sabmiller-beats-estimates-despite-flat-year-106703.html
<![CDATA[News - Carlsberg not the best brewing stock in the world (probably) ]]> https://www.proactiveinvestors.co.uk/companies/news/60434/carlsberg-not-the-best-brewing-stock-in-the-world-probably-70838.html When it comes to extolling the virtues of beer, Deutsche Bank goes for “[it] shares many of the favourable characteristics inherent in consumer staples”.

This from a German bank…

It is a broker note, however, and not a beer guide, so it is excusable that the bank goes on about how capital intensity and affordability favours volume over pricing in the brewing game, while the “physical and local nature of beer gives brewers a ‘moat’ around their operations protecting earnings and creating the capacity to invest for growth”.

The latter means users like their beer fresh, which accounts for why brewers such as Heineken, AB Inbev, Carlsberg and SABMiller (LON:SAB) buy local brewers that produce beverages that are largely similar to the brews produced by the parent companies.

“The protection and leverage of that local scale drives sustainable returns allowing brewers to consistently re invest their earnings into brands, capital expenditures, market expansion and penetration into illicit alcohol markets at attractive price points,” Deutsche claims in a round-up of the runners and riders in the European lager market.

The bank says it sees limited scope for mergers & acquisitions activity between the big four brewers, but suggests that they might view soft drinks as an avenue of expansion, both in emerging and developed markets.

Deutsche likes Heineken (target price: €60) most out of the four, while AB InBev and SABMiller are rated no better than ‘hold’, with the price target on the latter remaining at 3500p.

Carlsberg is a sell, and is therefore probably not the best stock in the world.

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Wed, 30 Jul 2014 15:42:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/60434/carlsberg-not-the-best-brewing-stock-in-the-world-probably-70838.html
<![CDATA[News - SABMiller could boost coffers with Tsogo Sun stake sale ]]> https://www.proactiveinvestors.co.uk/companies/news/57426/sabmiller-could-boost-coffers-with-tsogo-sun-stake-sale-67662.html SABMiller (LON:SAB) is mulling its options for its US$1bn stake in South African hotel and casino operator Tsogo Sun Holdings after revenues missed analyst estimates.

The Grolsch-to-Peroni group said the 39.6% stake in Tsogo, which is listed in Johannesburg, is not considered part of the core business, but warned that action may not be taken.

It came as the group reported a 3% rise in revenues last year and a 2% rise in the fourth quarter, missing the City’s expectations of 4%.

It said adverse currency movements would affect its results due to its exposure to emerging markets.

Chief executive Alan Clark said: “We continued to deliver top line growth for the year, despite a number of headwinds and a challenging fourth quarter.

“The combination of our global overview and deep local insights enables us to fine tune our operations in each market and to deliver commercial progress, which underpins our confidence in our ability to deliver higher revenue growth in the longer term.”

Investec cut its rating on the stock to ‘hold’ following a 10% rise from the shares in the past month.

The shares fell 1.7% this morning to 3,070p.

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Tue, 15 Apr 2014 10:14:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/57426/sabmiller-could-boost-coffers-with-tsogo-sun-stake-sale-67662.html
<![CDATA[News - SABMiller's emerging markets keep it moving forward ]]> https://www.proactiveinvestors.co.uk/companies/news/54977/sabmillers-emerging-markets-keep-it-moving-forward-65043.html Strong demand in emerging markets helped Peroni to Grolsch brewer SABMiller (LON:SAB) push sales higher in its latest quarter despite another tough time in Europe.

Revenues in the three months to December were 4% higher and up by 2% on an ongoing basis. Volumes rose by 2%, with lager 1% higher and soft drinks 7% ahead, but the impetus came from Africa, Latin America and China.

Europe saw revenue decline by 6%, with lager volume especially hard hit in Poland and the Czech Republic.

The UK was the exception where the Brits’ insatiable demand for Peroni drove sales 9% higher while lower volumes in the US were offset by the sales mix and higher net pricing.

Alan Clark, SAB’s chief executive, said: "Growth in the third quarter was driven by our emerging market businesses where we are successfully targeting new consumers through affordability and premiumisation initiatives across our brand portfolios.

“The combination of pricing and volume growth, particularly in Africa, Latin America and China, supported net producer revenue growth of four percent. This was in spite of continued weakness in consumer sentiment, which particularly impacted our European and North American businesses."

Shares fell 2% to 3,036p.

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Tue, 21 Jan 2014 09:35:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/54977/sabmillers-emerging-markets-keep-it-moving-forward-65043.html
<![CDATA[News - SABMiller raises a glass to 7% profit rise ]]> https://www.proactiveinvestors.co.uk/companies/news/53479/sabmiller-raises-a-glass-to-7-profit-rise-63451.html Beer brewing giant SABMiller (LON:SAB) toasted a 7% rise in first-half pre-tax profits, thanks to strong sales of its lager in emerging markets.

The world’s second biggest brewer said pre-tax profits in the six months to September 30 were up to US$2.43bn from US$2.26bn, including exceptional charges of US$52mln.

Latin America, where the group sells the most beer, saw revenues rise 5% to US$2.75bn, while Africa saw the biggest growth of 11%, generating revenues of US$1.66bn.

Strong sales in both emerging regions helped offset a fall in sales in Europe and North America, SABMiller’s second and third largest markets, respectively.

Group net producer revenue in Europe fell 1% to US$2.68bn, while North American revenues dipped a touch to US$2.51bn.

The strong performance in Africa and Latin America came despite a slowdown in growth in emerging markets, which hit currency movements against the US dollar.

Chief executive Alan Clark said: “We have continued to deliver on the potential of our businesses in both developed and developing markets, with revenue and margin improvements amid mixed trading conditions.

“We have improved the reach of our mainstream brands across most regions, and through initiatives such as the launch of Redd's Apple Ale in the USA, the momentum behind Castle Lite across Africa, and the increasing appeal of Peroni Nastro Azzurro from Europe to Australia, we are strengthening our premium propositions across the group and evolving our high-end brand portfolios to appeal to an ever wider range of consumers and drinking occasions."

The company also said its UK beer business outperformed the market by pints pulled this summer, helped by demand for premium lagers Pilsner Urquell and Peroni.

It also said it would be launching its Pilsner Urquell tank beer concept at more pubs in Britain following a successful trial at the White Horse in Parson’s Green, London.

The increasing popularity of craft beer in the UK, a concept which has flourished in the US, has boosted the appeal of on-site breweries and tanks.

The shares picked up 0.5% to £32.50.

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Thu, 21 Nov 2013 08:32:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/53479/sabmiller-raises-a-glass-to-7-profit-rise-63451.html
<![CDATA[News - SABMiller toasts Peroni’s popularity ]]> https://www.proactiveinvestors.co.uk/companies/news/52407/sabmiller-toasts-peronis-popularity-62249.html Peroni proved just the ticket for SABMiller (LON:SAB) as Britons continued to splash out on pints of the premium lager, which sell for £5 in some parts of London.

The brewer said domestic volumes were up 5% in the UK, led by Peroni, which was the beer of choice for those looking to sip on something cool over the summer.

It is also becoming a popular tipple down under as the company sold 25% more Peroni in Australia.

SABMiller also quashed concerns about a slowdown in emerging markets, with a solid performance in Latin America despite unrest in Colombia and an excise increase in Peru.

The increasingly important African markets fared well, with net producer revenue up 11% on an organic basis.

Total beverage volumes grew by 2% on an organic basis, with lager volumes up 1% and soft drinks volumes rising 5%.

The company said economic uncertainty is still a persistent problem in Europe, causing volumes to slip 1%.

“We achieved a strong performance across our African business and made good progress in building on our positions in Latin America, South Africa and the Asia-Pacific region,” said chief executive Alan Clark.

“Following a challenging start to the year, trading conditions in Europe and North America saw a modest improvement in the second quarter, although the consumer environments here are expected to remain under pressure.

He added: “Despite current prevailing uncertainties about developing market economies, we remain confident in the long term growth prospects for the group.”

The shares rose 5% to £31.91 on Thursday.

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Thu, 17 Oct 2013 08:25:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/52407/sabmiller-toasts-peronis-popularity-62249.html
<![CDATA[News - SABMiller upgrade prompted by rethink on emerging markets ]]> https://www.proactiveinvestors.co.uk/companies/news/49295/sabmiller-upgrade-prompted-by-rethink-on-emerging-markets-58716.html Friday morning is a little early to sink a cold pint of Peroni. However, SABMiller (LON:SAB), the maker of the Italian lager, had cause for minor celebration after French bank SocGen upgraded the brewer and gave an upbeat assessment of its emerging markets business.

The stock has been promoted to ‘buy’ from ‘hold’ with a price target of 3,620p (current price 3,280p). A rethink on the potential of its emerging markets business was behind the change of heart.

SAB is the most exposed of all the drinks giants to these new important developing economies, which account for around three-quarters of its business.

The prevailing wisdom suggests that, as the overall population of these newly emerged powerhouses begins to age, so their consumption of beers begins to dissipate.

However, SocGen reckons there is negligible evidence to suggest whether this theory is true in fact.

“Young people are often considered to consume a disproportionate amount of alcohol relative to older drinkers, suggesting that this trend could be of concern,” said analyst Andrew Holland.

“In fact, there does not appear to be a statistical link between age and consumption in SAB’s markets.

“We believe that this is because the link between youth and alcohol consumption may be non-existent in emerging markets, where the necessary level of affluence is achieved later in life.”

Holland said a deal that gives SAB full ownership of French, privately-owned beer group Castel’s African operation could add 13% to the former’s market worth.

“The Castel acquisition and a return to sustained growth in mainstream beer in the US and Australia are potential positive swing factors,” he added.

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Fri, 05 Jul 2013 10:09:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/49295/sabmiller-upgrade-prompted-by-rethink-on-emerging-markets-58716.html
<![CDATA[News - SABMiller cut to ‘reduce’ by Nomura ]]> https://www.proactiveinvestors.co.uk/companies/news/39575/sabmiller-cut-to-reduce-by-nomura--47252.html  

 

Nomura International has cut its rating for brewer SABMiller (LON:SAB) to ‘reduce’ from ‘neutral’ as it sees short-term downside risks due to continuing pressure on margins.

London-based analyst Ian Shackleton said although the long-term growth story for SABMiller is still attractive given exposure to fast-growth markets, the short-term downside risk from margin pressure cannot be ignored.

“With the shares now trading on a 9 percent premium to the beer average, we downgrade our rating from Neutral to Reduce,” he said.

His target price is 2,600 pence.  SABMiller was last trading at 2,762.5 pence.

Shackleton believes his cautious view is supported by the interim figures from Dutch rival Heineken reported yesterday, with higher input costs, exacerbated by foreign exchange movements, especially in Central & Eastern Europe and Africa. 

Pressure in Central & Eastern Europe is also exacerbated by a growth in discount channels.

In addition, the analyst said the outlook for Australia is not improving, with Asia and Pacific-focused bottler Coca Cola Amatil revealing yesterday that it plans to re-enter the beer industry at the end of 2013, which could lead to increased competition.

Also, the recent acquisition of Grupo Modelo by AB Inbev argues against a bid by AB Inbev for SABMiller in the short to medium term, Shackleton said.


 

 

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Thu, 23 Aug 2012 13:17:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/39575/sabmiller-cut-to-reduce-by-nomura--47252.html
<![CDATA[News - Foster's asks shareholders to reject SABMiller's $10bn bid ]]> https://www.proactiveinvestors.co.uk/companies/news/26897/fosters-asks-shareholders-to-reject-sabmillers-10bn-bid-32105.html Foster’s Group (ASX:FGL) today urged its shareholders to reject SABMiller’s (LON:SAB) hostile offer for the group, which it said “significantly undervalues” the company.

British-based SABMiller, whose brands include Grolsch, Miller Lite and Peroni, said on Wednesday it was taking its A$4.90 per share offer for Foster’s directly to shareholders after its initial takeover approach was rejected in June.

“As there has been no willingness to engage in relation to SABMiller's proposal on the part of the Foster's Board, SABMiller has decided to make an offer to Foster's shareholders directly,” SABMiller said in a statement yesterday.

The A$4.90 per share offer values Foster’s at roughly US$10 billion, which equates £6.3 billion.

Foster’s today reiterated that the offer undervalues the company with the board unanimously recommending that shareholders reject it.

The group controls roughly 50 percent of Australia’s domestic market and has some of the highest margins in the industry.

SABMiller already owns the Foster's brand in India and the US brewing rights, while the rights to the Foster’s brand in the UK and Europe are held by Dutch brewer Heineken.

In the meantime, there appear to be no rival suitors that could counter SABMiller’s offer and spark a bidding war.

Heineken said it was focused on expansion in emerging markets in response to speculation of a possible bid for Foster’s back in June.

There have also been rumours of a possible joint bid by Molson Coors (NYSE:TAP) and Mexican brewer of Corona beer Modelo, but neither has yet expressed any intention to make an offer for the group.

Shares in SABMiller dropped 40 pence (2 percent) to 2,099 pence on the news, giving it a market cap of £33.35 billion.

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Thu, 18 Aug 2011 09:48:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/26897/fosters-asks-shareholders-to-reject-sabmillers-10bn-bid-32105.html
<![CDATA[News - Foster's acquisition could reduce SABMiller's target price, says Nomura ]]> https://www.proactiveinvestors.co.uk/companies/news/24852/fosters-acquisition-could-reduce-sabmillers-target-price-says-nomura-29688.html Broker Nomura said today that SABMiller’s (LON:SAB) bid for Foster’s has given it no reason to change its “reduce” recommendation for the stock.

Furthermore, Nomura indicated it could cut SABMiller’s target price if it ends up acquiring the Australian brewer, depending on the synergies that will result from the deal.

The FTSE 100 beverage group announced yesterday that it made a A$4.90 cash bid for Foster’s, which was promptly rejected with SAB offering no indication whether it intends to continue pursuing the company and possibly come back with a sweetened offer.

Nomura’s analyst Ian Shackleton said that while the bid should not be a surprise to the market, the timing seems to be odd.

Shackleton expected a move after Foster's full year results announcement in August. The offer instead appeared to be a response to the joint bid from Modeno/Molson/Coors, which appeared to have been ruled out last week.

Even with a rival bid unlikely, the fact that Foster’s rejected the bid and did not enter negotiations leaves SAB in a weak bargaining position and it would have to up the offer to secure Foster’s board approval, said Shackleton.

As minimal detail was given on synergies, it was hard for the analyst to determine whether the acquisition would “create or destroy” value. The broker’s base case scenario of A$4.90 per share, assuming A$300 million of synergies, would not lead to any changes to the current target of 2,150 pence.

Should SAB come back with a higher offer of A$5.39, Nomura’s target for SAB will slip to 2,100. Assuming synergies of only A$100 million would push it further down to nearer 2,000 pence, said Shackleton.

In the meantime, Nomura expects shares in SAB to fall further after dropping 3.5 percent yesterday following the bid announcement.

“Until there is a final resolution on the bid value, we see no reason to change our Reduce rating... the shares have seen some de-rating from their premium valuation but we still see further drift at least until the deal is put to bed,” said Shackleton.

Nomura’s current target price of 2,150 pence represents a premium to this morning’s price of 2,099 pence. SAB currently has a market cap of £33.3 billion.

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Wed, 22 Jun 2011 12:10:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/24852/fosters-acquisition-could-reduce-sabmillers-target-price-says-nomura-29688.html
<![CDATA[News - SABMilller launches £6.2 billion bid for Foster's ]]> https://www.proactiveinvestors.co.uk/companies/news/24792/sabmilller-launches-62-billion-bid-for-fosters-29613.html Foster’s Group (ASX:FGL), the Australian brewer of the ‘amber nectar’, has rejected a £6.2 billion takeover bid from SAB Miller (LON:SAB).

The deal values Fosters’ shares at A$4.90 each, though the stock surged to A$5.19 at one point in a frenetic session as investors bet on SAB lodging a higher offer.

Today’s move is just the latest in a series of mega-deals in the sector which have seen Brown Ale maker Scottish & Newcastle and Anheuser-Busch, creator of the iconic Budweiser lager, taken out. 

"The board of Foster's believes that the proposal significantly undervalues the company in the context of a change of control and, as such, it does not intend to take any further action in relation to it," the company said in a statement.

SAB this morning confirmed in a stock exchange statement that it had lodged what it called a non-binding offer for its Aussie counterpart. 

“SABMiller has a proven track record of acquiring and integrating brewing companies in a way which benefits shareholders, employees, business partners and the broader community,” said chief executive Graham Mackay.

"We aim to strengthen the Foster's brand portfolio and work with the local team to bring our innovation, global scale and expertise to the business.

"We continue to believe that the proposal price is attractive and offers good value to Foster's shareholders. SABMiller can conclude a transaction quickly and will continue to seek engagement with the Board of Foster's to put an agreed proposal to Foster's shareholders."

The prize for SAB is a company that has 50 per cent market share in its native land and some of the highest profit margins in the industry.

SABMiller already owns the Foster's brand in India and the US brewing rights.

Newswire reports suggest there is the potential of counter-bid, though already Japan's Asahi Breweries and Tsingtao have ruled themselves out of the running.

The finger of suspicion is currently pointing at  Mexico’s Grupo Modelo SAB de CV and Molson Coors Brewing Co, which are rumoured to be plotting a joint takeover. 

 

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Tue, 21 Jun 2011 08:15:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/24792/sabmilller-launches-62-billion-bid-for-fosters-29613.html
<![CDATA[News - SABMiller opens £3mln centre to develop eco-beer production ]]> https://www.proactiveinvestors.co.uk/companies/news/23801/sabmiller-opens-3mln-centre-to-develop-eco-beer-production-28407.html International brewer SABMiller (LON:SAB) has unveiled a £3million centre in the UK to develop eco-beer production.

The research facility in Nottingham will be formally opened in June and the company hopes it will pioneer new developments in the science of brewing.

In 2008, the company - one of the world's largest brewers - set a target to reduce its water use per litre of beer by 25 percent by 2015, and in 2009 announced that by 2020 it will reduce fossil fuel emissions from its beers by 50 percent per litre of beer produced.

CEO Graham Mackay said today: "Whilst the recession is leading some businesses to withdraw funding into research and development, our belief is that it is more critical than ever to invest.

"Significant improvements in water and energy efficiency will only be achieved if we continue to commit resource and capital to driving the necessary degree of change."

The facility will be at the university of Nottingham's school of biosciences and professor Katherine Smart, the university's SABMiller chair fo brewing science, will also be based there.

The team will focus on innovations in the brewing process and novel uses of brewing by-products.

Meanwhile, the company also reported that Lesley Knox and Helen Weir have agreed to join the board as independent non-executive directors with effect from today.

The firm also revealed its results for the 12 months to 31 March 2011 , in which it reported a 7 percent increase in group revenues to $19.4 billion.

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Thu, 19 May 2011 10:51:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/23801/sabmiller-opens-3mln-centre-to-develop-eco-beer-production-28407.html
<![CDATA[News - SABMiller reports flat lager volumes in Q3 ]]> https://www.proactiveinvestors.co.uk/companies/news/9899/sabmiller-reports-flat-lager-volumes-in-q3-12368.html International brewer SABMiller (LSE: SAB) reported on its third quarter trading performance, revealing that overall lager sales were flat in Q3 2009 from a year earlier. SABMiller said that consumer demand was varied across its markets during the quarter, with some showing tentative signs of recovery, while in others demand remained  subdued.

In the three months ended 31 December growth in Latin America, Africa and Asia was offset by declining volumes in Europe and South Africa.

In the third quarter, SABMiller’s premium brands had a weaker performance with MillerCoors domestic sales to to retailers down 3.6% compared with the previous year, Miller Lite and Coors Light volumes fell also. In the company’s craft and import portfolio Blue Moon and Peroni Nastro Azzurro outperformed the other brands, with high single and mid single-digit growth, however the portfolio’s overall volumes were down slightly. Soft drinks  volumes grew 2% in the quarter on an organic basis.  

Geographically performance was mixed. In Latin America, increased lager volumes in Colombia, Peru and Ecuador were the drivers of the region’s 4% volume growth among beers, whilst Central American soft drink sales provided a 9% increase in the region’s soft drink volumes. The region’s performance generally benefited from good weather, varying sales initiatives and wider retail outlet penetration.  

European volumes declined by 2% in the third quarter despite a 34% increase in Russia, which reflects a significant buy-in ahead of a substantial excise increase in January. Growth in Russia was offset by the declines among other Eastern-European countries; Romanian lager volumes declined 18%, whilst volumes in Poland and the Czech Republic fell by 5%.

South Africa continued to experience a softening of consumer demand and market share declined marginally over the quarter. SABMiller said its performance was impacted by a weak economy and unseasonal cold weather, lager volumes declined 4% and soft drinks volumes were down 5%.

SABMiller’s brand portfolio includes premium international beers such as Grolsch, Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as market-leading local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. SABMiller is also one of the largest bottlers of Coca-Cola products in the world.

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Tue, 19 Jan 2010 10:34:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/9899/sabmiller-reports-flat-lager-volumes-in-q3-12368.html
<![CDATA[News - SABMiller’s ‘Strong Underlying Performance’ In First Half Offset By Currency Translation ]]> https://www.proactiveinvestors.co.uk/companies/news/8164/sabmillers-strong-underlying-performance-in-first-half-offset-by-currency-translation-10350.html In its half year interim statement, international brewers SABMiller PLC (LSE: SAB) said that weak currency  conversions offset a ‘strong underlying performance’ . Revenue fell 6% and reported earnings were down 2%.

Improved pricing and cost efficiency led the underlying performance. On a constant currency basis, group revenue growth and earnings improved by 3% and 11% respectively. SABMiller achieved margin growth of 110 basis points, and free cash flow improved by $1.1 billion through the six month period.

On a constant currency basis, underlying earnings performance was strong where the company’s Asian and African division performed the best, rising 29% and 15% respectively. In its western markets, earnings growth was more restrained. In North America, cost synergies lead to a 7% rise in earnings. Meanwhile in Europe the group’s solid pricing overcame reduced volumes, resulting in a 5% increase in earnings.

Graham Mackay, Chief Executive of SABMiller commented on the group’s performance: "In some of the toughest economic conditions seen for decades, we have continued to take share in a number of markets.  The weakness of our major operating currencies against the US dollar has affected reported results, but we have continued to generate a strong underlying performance. The actions we have taken to position our business globally, to invest in brands and to develop our operational capabilities will continue to underpin our long term growth."

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Thu, 19 Nov 2009 08:58:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/8164/sabmillers-strong-underlying-performance-in-first-half-offset-by-currency-translation-10350.html
<![CDATA[News - SABMiller to buy Zambia beverage portfolio for US$19.25 million ]]> https://www.proactiveinvestors.co.uk/companies/news/5977/sabmiller-to-buy-zambia-beverage-portfolio-for-us1925-million-7917.html SABMiller PLC (LSE: SAB) said its operating subsidiary in Zambia, Heinrich's Syndicate Ltd, has  entered  into an agreement with Trade Kings Ltd to acquire its Maheu drinks business for US$19.25 million in cash.

The transaction includes the purchase of the Maheu brand 'Super Maheu No.1' which is a non-alcoholic maize drink available in a variety of flavours.

Completion of the acquisition is expected to take place in the next two months.

Within Zambia, SABMiller Africa already owns Zambian Breweries Group, the largest clear beer and soft drinks business in the country, and 70 percent of National Breweries PLC, which is listed on the Lusaka Stock Exchange and commands a substantial amount of the opaque beer market.

SABMiller Africa plans to grow the Maheu business throughout Zambia and across a variety of African markets, resulting in both increased sales volumes and further employment opportunities.

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Tue, 08 Sep 2009 12:39:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/5977/sabmiller-to-buy-zambia-beverage-portfolio-for-us1925-million-7917.html
<![CDATA[News - SAB Miller JV MillerCoors says sales volumes down, posts fourth straight profit hike ]]> https://www.proactiveinvestors.co.uk/companies/news/5203/sab-miller-jv-millercoors-says-sales-volumes-down-posts-fourth-straight-profit-hike-7018.html Soft beverage maker SABMiller plc (LSE: SAB) and Molson Coors Brewing Company (NYSE: TAP) presented impressive Q2 results for their joint venture MillerCoors today, reporting a 4th straight double digit hike in quarterly profits.


The JV, which is responsible for selling a number of brands owned by the two companies in the US, saw its underlying net income increase by 16.4% year on year while net sales amounted to USD 2.14 billion, up 1.6% from the previous year.


The profit climbed to USD 304.9 million from USD 174.6 million a year ago, representing
The increases were largely due to the implementation of the cost cutting measures, which sent costs down 10.8%. The year to date synergies stood at USD 110 million, with the second quarter contributing USD 60 million. The company said it now expected the synergies to reach USD 260 million by the end of the calendar year, upping the previously stated target of USD 225 million.


“Since combining operations last July, we have achieved double-digit growth in underlying earnings for four consecutive quarters,' said MillerCoors CEO Leo Kiely. 'These results show MillerCoors is connecting consumers with its new brand portfolio and effectively driving synergies to become stronger and more competitive in the U.S. beer industry,” said MillerCoors CEO Leo Kiely.


Not all the news was positive as the company said sales volumes decreased for its premium brands, including Miller Lite and Coors Light in the wake of the “current economic challenges.” The total decline in domestic sales to retailers (STRs) amounted to 0.8%, while domestic sales to wholesalers (STWs) were down 1.1%.


The losses associated with the STRs and STWs slip were offset by higher per barrel revenues in this quarter, up 3.0% year on year, stemming from the previously introduced price hikes.


SABMiller was down 2% on LSE today following the release of the news.

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Mon, 03 Aug 2009 14:26:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/5203/sab-miller-jv-millercoors-says-sales-volumes-down-posts-fourth-straight-profit-hike-7018.html
<![CDATA[News - SABMiller to buy remaining minority interest in Polish subsidiary ]]> https://www.proactiveinvestors.co.uk/companies/news/4044/sabmiller-to-buy-remaining-minority-interest-in-polish-subsidiary--5633.html SABMiller PLC (LSE: SAB) said it has agreed to acquire the outstanding 28.1 percent minority interest in its Polish subsidiary, Kompania Piwowarska SA, from Kulczyk Holding SA in exchange for 60 million new SABMiller shares.

Based upon SABMiller's closing share price of £12.20 on Wednesday May 13 2009, it is paying US$1.1 billion for the stake.

Following completion of the transaction, Kulczyk Holding will hold approximately 3.8 percent of the issued share capital of SABMiller.

SABMiller said owning 100 percent of its largest and most profitable business unit in Europe will be of significant strategic benefit in the medium term. In the current financial year, the transaction is expected to have no material impact on earnings per share on a pro forma basis.

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Thu, 14 May 2009 08:14:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/4044/sabmiller-to-buy-remaining-minority-interest-in-polish-subsidiary--5633.html
<![CDATA[News - SABMiller full-year lager sales rise 2 pct, soft drinks up 5 pct ]]> https://www.proactiveinvestors.co.uk/companies/news/3700/sabmiller-full-year-lager-sales-rise-2-pct-soft-drinks-up-5-pct-5228.html Brewer SABMiller PLC (LSE: SAB) said like-for like lager volumes for the full year to March 31 2009 rose 2 percent from a year earlier on an organic basis, while soft drinks volumes rose 5 percent year-on-year. Economic conditions deteriorated in the second half and consumer demand has fallen in most markets, particularly in the fourth quarter.

Group revenue has continued to benefit from price increases and grew in high single digits for the full year on an organic basis at constant exchange rates.  “Financial performance has been impacted by significant unfavourable currency movements in the second half of the year. However, the financial results of the group remain in line with our expectations,” the company said.

In Latin America, lager volumes were up 1 percent for the year, with a decline in the fourth quarter.  Soft drinks volumes for the region grew 2 percent for the year on an organic basis.

Europe organic lager volumes were level with the prior year reflecting the impact of the economic downturn on consumer disposable income, particularly in the second half of the year. 

MillerCoors US domestic sales to retailers for the nine months to March 31 2009 were down 0.4 percent against the prior year on a pro-forma basis.

Africa and Asia delivered organic growth of 4 percent in lager volumes for the year.

In Africa, lager volumes grew by 5 percent despite a fourth quarter in which the global economic slowdown began to take effect in most key markets.  Soft drinks volumes for the region grew 13 percent for the year on an organic basis, SABMiller said.

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Thu, 16 Apr 2009 11:51:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/3700/sabmiller-full-year-lager-sales-rise-2-pct-soft-drinks-up-5-pct-5228.html
<![CDATA[News - SABMiller buys out Vietnamese joint venture partner ]]> https://www.proactiveinvestors.co.uk/companies/news/3451/sabmiller-buys-out-vietnamese-joint-venture-partner-4888.html SABMiller PLC said it agreed with  joint venture partner Vietnam Dairy Products Joint Stock Co (Vinamilk) to acquire Vinamilk's 50 percent interest in SABMiller Vietnam JV Co Ltd. Following the deal, SABMiller Asia BV is the sole shareholder in the business.

The assets which are the subject of the transaction totalled US$31.8 million as at December 31 2008.

SABMiller Vietnam's brewery is located in Binh Duong province and supplies the key markets of Ho Chi Minh City, Mekong Delta and Da Nang through an expanding distribution network.  The beer industry in Vietnam is still relatively small with total volumes of 18.5 million hectolitres but is expected to grow significantly, the company said.

Mai Kieu Lien, general director of Vinamilk, was cited as saying: “Vietnam offers exciting prospects. We have shared a mutually beneficial partnership with SABMiller in Vietnam's developing beer industry, but in the current economic environment we would like to restructure our business operation by focusng on our core business areas.”

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Fri, 20 Mar 2009 11:19:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/3451/sabmiller-buys-out-vietnamese-joint-venture-partner-4888.html
<![CDATA[News - SABMiller and China Resources Enterprise acquire Hupo Brewery for US$42 million ]]> https://www.proactiveinvestors.co.uk/companies/news/3357/sabmiller-and-china-resources-enterprise-acquire-hupo-brewery-for-us42-million-4769.html Investing in Chinese breweries is certainly high on the shopping list of the world’s leading beer companies, including SABMiller (LSE: SAB).  Today SABMiller announced that its joint venture in China, China Resources Snow Breweries, had made its first acquisition in Shandong Province.  SABMiller and China Resources Enterprise Limited are the joint venture partners in China Resources Snow Breweries.


China Resources Snow Breweries is acquiring a 90% interest in Shandong Hupo Brewery, with an option to acquire the remaining 10% stake, for a total cash consideration of approximately $42 million.

“Hupo Brewery is situated in Zouping county, northern Shandong Province. More beer is consumed in Shandong Province than any other province in China and Zouping county serves as a transportation hub to neighbouring major cities such as Binzhou, Jinan, Zibo and Dongying,” SABMiller stated.


Hupo Brewery has production capacity of 2.7 million hectolitres, and the joint venture will invest a further US$8 million to increase capacity to 3 million hectolitres.


Mr. Ari Mervis, Managing Director of SABMiller Asia, said; 'SNOW continues to enjoy good growth in China and the significant import sales volume that the brand already enjoys in the province certainly justifies the establishment of a production base here. The brewery has a strategic location in northern Shandong and is well connected by highways to the other major cities in this region.'

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Fri, 13 Mar 2009 10:12:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/3357/sabmiller-and-china-resources-enterprise-acquire-hupo-brewery-for-us42-million-4769.html
<![CDATA[News - SABMiller China JV buys 3 domestic breweries for US$110 million ]]> https://www.proactiveinvestors.co.uk/companies/news/3187/sabmiller-china-jv-buys-3-domestic-breweries-for-us110-million-4574.html SABMiller PLC said its China Resources Snow Breweries Ltd joint venture (CR Snow) with China Resources Enterprise Ltd has agreed to acquire three breweries in Anhui, Liaoning and Zhejiang provinces in three separate transactions for a total of US$110 million, of which approximately US$93 are million in cash.

CR Snow has agreed to acquire the brewing assets of Anqing Tianzhu Beer Co, Liaoning Songlin Brewery Group Co Ltd and Zhejiang Luck Beer Co Ltd through three newly-formed subsidiaries in which it will own 80, 85 and 100 percent respectively.

Following the investment, the operations will add a total of 4.7 million hectoliters to CR Snow's existing production capacity of about 117 million hectolitres.

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Thu, 26 Feb 2009 11:06:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/3187/sabmiller-china-jv-buys-3-domestic-breweries-for-us110-million-4574.html
<![CDATA[News - SABMiller says Q3 lager volumes up slightly ]]> https://www.proactiveinvestors.co.uk/companies/news/2753/sabmiller-says-q3-lager-volumes-up-slightly-4037.html Brewer SABMiller PLC reported lager volumes up 1 percent at the end of the third quarter compared with the same period a year earlier and up 2 percent in the year to-date, saying consumer demand has been affected by the current global economic slowdown, and has continued to weaken in many of the group's markets.

 The financial performance of the group in the quarter to end-December 2008, supported by firm pricing and cost efficiencies, has been in line with company expectations, notwithstanding the relative strength of the US dollar against the group's major currencies.

In Latin America, lager volumes grew by 2 percent in the quarter, while in Europe, third quarter lager volume on an organic basis declined 1 percent as the region experienced the impacts of the global financial crisis on consumer disposable income.

MillerCoors US domestic sales to retailers on a pro forma basis decreased 2.3 percent in the context of weaker beer category volumes and strong pricing.

In SABMiller’s Africa and Asia business, organic lager volumes increased 2 percent in the quarter. China organic volumes were flat, with growth in the Chinese economy slowing. In Africa, lager volumes grew by 4 percent on an organic basis with growth in most major markets with the exception of Botswana where volumes declined significantly following the imposition of a social tax levy on all alcohol products in November.

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Thu, 15 Jan 2009 12:31:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/2753/sabmiller-says-q3-lager-volumes-up-slightly-4037.html
<![CDATA[News - Hangover at SABMiller? ]]> https://www.proactiveinvestors.co.uk/companies/news/2216/hangover-at-sabmiller-3338.html … SAB released a trading statement on the 14th October, which stated that first half performance was in line, although deteriorating global conditions have made the prospects for the second half increasingly uncertain.


As can be seen from the above chart of the FTSE 100 the index has bounced around 18% from last weeks short term low of 3664.

Anticipation of interest rate cuts in the US and several emerging economies has encouraged many value buyers back into the market, with rumours of pension funds transferring bonds back into equities at these depressed levels.

Furthermore, the recent uplift of the relative strength index (RSI) has created some divergence, which indicates that the momentum behind the buying is building and suggests the index could be set to move higher.

However, whether this is just another bear market rally or some kind of longer term base remains unclear at this stage. History implies that heavy capitulation selling is needed to mark a floor for equity markets to build on. Although, compared to the heavy volume falls experienced in October 1929 and October 1987, we have not yet witnessed the same extent of panic selling.

So far this year most of the biggest volume days have been up days, not down days and this is not how volume has behaved historically when markets have stopped going down. It is more like the way markets behave in the early stages of a bear market, when hope still reigns.

With this in mind, I am inclined to suggest that this is just another bear market rally. Escalating momentum could push the index slightly higher in the short term. However, I believe previous key support of 4600 will now act as resistance and the FTSE is likely to struggle breaking this level. Therefore, I remain a seller of further strength.

With this in mind, I regard the recent rally as an opportunity to re-short stocks, which have generated some large profits over the past few months.

The beverage sector is one of the top performing sectors over the past week, with the average up around 10% during this period. A stock I have been following closely within this sector is SABMiller (SAB), which is one of the world’s largest brewers, owning brands such as Miller and Peroni and operating across four continents.

SAB released a trading statement on the 14th October, which stated that first half performance was in line, although deteriorating global conditions have made the prospects for the second half increasingly uncertain.

High input cost inflation and weakening demand are impacting on margins, with the benefit of recent falls in commodity and packaging materials unlikely to filter through for some time due to existing hedging positions.

SAB’s growth in emerging markets has been a key catalyst for the shares. However, rapidly slowing growth rates in these regions, combined with looming recessions in North America and Europe will continue to impact demand and reduce expectations going forwards.

Furthermore, volatile exchange rates have made forecasts for the rest of the financial year increasingly uncertain. The sharp fall of many of SAB’s key currencies against the dollar has prompted several recent earnings downgrades and makes hedging increasing more difficult.


As can be seen from the above chart of SABMiller the shares gained over 3 times from 2003 to October 2007, although they now appear to be spiraling lower.

The 200 day moving average provided support during the earlier years of gains. However, since crossing bearishly lower through the 50 day moving average in February 2008 it has acted as resistance to the shares.

Since the highs last year the shares have been in a downward channel formation, with lower highs and lower lows. Initial support is offered from the Fibonacci 61.8% retracement level of 780p, which is also confirmed by the lows experienced in 2005.

Given our earlier bearish analysis of the FTSE the shares look destined to break this level and test the Fibonacci 78.6% retracement level of 600p, which coincides with the historic resistance level before 2003.

The oscillators have moved higher with this bounce in equity markets, although the RSI has failed to break above the 50 level, which is a bearish signal given the recent increase in the share price.

If we combine our earlier analysis of the FSTE with the weak fundamental and technical analysis discussed about SAB, I believe this recent strength could present a good opportunity to short sell into.

At the time of writing the share price is 944.5p and I am looking to build a short position in SAB above 960p. Near term targets are seen at 910p, 815p and 625p. I shall set a stop loss on the trade marginally above historic support at 1025p.

 


Mark Allen is Head of derivatives at Simple Investments Stockbroker. The writer does not hold a position material in this report has come from Fidessa, Share Scope and SABMiller’s corporate website.

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Fri, 31 Oct 2008 09:03:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/2216/hangover-at-sabmiller-3338.html