The heaviest rain in Colombia in 50 years took its toll on the sales of brewer SABMiller; however, strong sales in Asia and Africa may have enabled the company to register a 1.6 percent growth in volumes in the last quarter of 2010.
SABMiller’s sales are cyclical in nature and heavily dependent on the summer sales of Latin America and South Africa. The London based company has managed to register better sales on the back of higher prices during the period.
While the mature markets have stagnated due to the economic slowdown, SABMiller’s 80 percent of the profits come from Poland, South Africa, Colombia and China.
The company’s Asian sales were driven by the world’s biggest beer market China, followed by South Africa, Mozambique and Angola in Africa. However, sales have been declining in Europe, Latin America and North America.
SABMiller said in a statement that it expects to benefit from lower input cost of barley till its fiscal year ends in March 2011. The world’s second largest beer producer after Anheuser-Busch InBev expects barley prices to grow by small amounts as grain prices start going up from the first quarter of 2011.