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World's Largest Beer Maker Reports Slumping Sales
August 4, 2008

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News Summary

A combination of a weak U.S. economy and higher prices and sluggish demand in other countries has resulted in slow first-quarter sales for SABMiller PLC, the world's largest beer maker by volume, the Wall Street Journal reported Aug. 1.

Worldwide shipments for the London-based company decreased by 1.6 percent in the quarter ended June 30, after the company had experienced a 13 percent increase in the same period a year ago. Even in traditional stronghold areas for sales, such as the U.S. Midwest, a slowdown in spending has hurt the brewer of Miller Lite and other brands. Sales volume at the company's U.S. arm is down 2 percent, including a 1.6 percent drop in sales for the Miller Lite brand.

Industry experts say SABMiller may be less able to withstand the effects of an economic slowdown because its "economy brands" are not as popular as those of rival Anheuser Busch. Benj Steinman, editor of the newsletter Beer Marketer's Insights, said Anheuser Busch brands such as Busch Light and Natural Light tend to carry more appeal than SABMiller's economy brands, such as Milwaukee's Best Light.

Higher costs of raw materials such as barley are forcing beer makers in general to raise prices, and that is contributing to a slowdown in demand in countries such as the Czech Republic and Colombia. Sales volume in those two countries is down 10 percent and 4 percent, respectively. 

COMMENTS ON THIS ARTICLE:

Posted by JJCastleton on 14 Aug 08 10:03 AM EDT
While I am excited to hear that SABMiller and the alcohol industry is just as vulnerable to the whims of the economy. I still remain frustrated with acceptance of heavy drinking among youth and strength of alcohol lobbying for lowering of drinking in a few states including Wisconsin. Should these efforts be successful "ichoosefreedom" will be happy that a new market opens up and makes advertising that is already directed toward teenagers that much more acceptable.

Posted by Anonymous on 12 Aug 08 10:58 PM EDT
Smoking Bans started killikg business long before the economy slump.I believe most people have a better idea of what is causing the increase in Cancer /Heart disease. The leading threats, Diesel, Wood Smoke? To find out about Wood/Wildfires, look up Burning Issues http://www.burningissues.org/comp-emmis-part-sources.htm and note where Tobacco smoke is on the chart and then try this. Are Diesels More Dangerous than Cigarettes as a Cause of Lung Cancer? http://www.second-opinions.co.uk/diesel_lung_cancer.html Bear in mind, this report was made before the EPA forced the inclusion of Cigarette Smoke to the Carcinogenic tables, with only their fraudulent report as proof. To access a comprehensive list of 150 ETS studies to date: click on link http://www.forces.org/evidence/study_list.htm And for the clincher see this. HOUSE COMMITTEE ON ENERGY AND COMMERCE HEALTH AND ENVIRONMENT SUBCOMMITTEE STATEMENT OF HON. THOMAS J. BLILEY, JR. JULY 21, 1993 http://www.pipes.org/Articles/Bliley.html

Posted by Be Real on 05 Aug 08 06:35 PM EDT
ichoosefreedom sounds like sour grapes (pun intended) The tragic deaths, fetal alcohol syndrome, rampant alcoholism, tobacco related fatalities, impact on our health system, ad infinitum, that the legal drug peddlers incur via their "small business" has nothing to do with freedom- it all has to do with big bucks at any cost to society. Perhaps these small successes like dwindling profits and consumers IS karma on the alcohol industry.

Posted by ichoosefreedom on 05 Aug 08 12:22 PM EDT
I notice you don't give yourselves a pat on the back for your part in the slumping sales. You apparently went for smoking bans first to close down all the bars you can so that after you drive us and beer distributors out of business, you can go after the remaining alcohol. JT, Tobacco-Free Kids, the ACS, the ALA and everyone else who's been funded by the Robert Wood Johnson Foundation vastly underestimated the ability of The People to organize. You've all raked in big money from the cash cow of anti smoking, all at the expense of small business owners. The more rights you take, the more businesses you close, the larger we get. Do you believe in Karma?

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