South Africa's SABMiller has been hit by the global economic slowdown with consumers cutting back on drinking, the brewing giant said on Friday.
In a statement, it said its first-quarter underlying beer volumes were flat. This was in line with its own expectations, the company said.
Soft drinks volume rose 2 percent in the first-quarter, "driven by strong sales in Africa," the statement said.
In South Africa, the market grew by some 2 percent benefiting from the Easter peak trading period in the current year, SABMiller's CEO Graham Mackay said.
"The underlying market continues to be affected by weakening consumer demand, rising unemployment and constraints on the sale of alcoholic beverages in the Western Cape."
The company's lager volumes were down two percent as it lost market share, principally in the premium segment. Soft drinks volumes were in line with the prior year.
"On July 1, 2009, we announced a proposal to enter into a broad-based black economic empowerment transaction in South Africa."
"This will involve an equity issue of approximately 10 percent of our South African Beverage business to a broad base of black participants, reflecting the group's long-standing commitment to socioeconomic progress in South African society," Mackay said.
SABMiller is the world's second-biggest brewer by volume after Anheuser-Busch. Its brands include Castle Lager, Pilsner Urquell, Grolsch and Peroni Nastro Azzurro.
Source: Xinhua
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