SABMiller to invest $1.8 bln in South America http://today.reuters.com/news/articleinvesting.aspx?type=companyNews&storyID=2007-01-17T150552Z_01_WLA7748_RTRIDST_0_SABMILLER-SOUTH-AMERICA-URGENT.XML
Wed Jan 17, 2007
LONDON, Jan 17 (Reuters) - SABMiller Plc (SAB.L: Quote, Profile , Research) is to invest around $1.8 billion in its South American operations over 5 years and forecasts its beer markets there will grow 6 to 8 percent a year over the period, the brewer said on Wednesday.
The world's second biggest brewer operates in four countries -- Colombia, Peru, Ecuador and Panama -- in the region and said 45 percent of the investment will go into brewing capacity.
This figure includes the already announced $175 million to build a new brewery in Cali, Colombia's third largest city, and $102 million to expand breweries at Ate and Motupe in Peru.
SABMiller (SABJ.J: Quote, Profile , Research), which bought South American brewer Bavaria in October 2005 for $7.8 billion, said the investment came as it responded to higher-than-expected sales volumes and the significant profit growth potential in the region.
Earlier, SABMiller announced its underlying beer volumes rose in the four countries by 12 percent in its third-quarter (Oct-Dec) and by 11 percent in the nine-months to end-Dec 2006, boosted by strong economic growth in the four nations.
"We are very pleased with the growth, but we have set a more cautious 6 to 8 percent annual target over the next five years as economic growth in the area may move slightly lower," Barry Smith, chief executive officer of SABMiller's South America region told a briefing.
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