SABMiller I had a beer in Ahfrica
SABMiller, a brewing company, intends to grow revenue by more than 10% in Africa over the next three to five years, while increasing its volume sales in the mid-single digits. While almost a third of SAB’s profits come from the thirsty continent, pundits believe there is room for more: Africans drink just nine litres of the ambrosial stuff every year, lagging their European counterparts by a whopping 36 litres. It takes an African, you see, eight hours to earn the price of a beer, something a European can accomplish in just eight minutes. This gap should narrow, SAB contends, when Africans become more affluent, as we appear, patchily, to be doing. Part of the challenge for the Big Feller in Africa are homebrews, with which it must compete by keeping prices assiduously down. That and investing in capacity: a $100million expansion project is underway in Ghana, joining the many millions already invested in Nigeria, Zambia and elsewhere.
Comment: Still, with a 48% share of the market currently, SAB have much to congratulate themselves about.