E-Malt.com News article: Brazil: SABMiller to expand its operations in the biggest Latin America country

SABMiller PLC, the maker of Miller Lite, said it is scrutinizing opportunities to expand its nascent operations in Brazil, but the global brewer declined to comment on recent speculation over potential acquisitions in the country, Dow Jones Newswires reported on July, 5.

"We very recently studied all of Latin America; ways potentially to expand out and in what form. We concluded we wanted to do more and we have started to do more," he said.

"There are opportunities going forward. In Brazil, of course there is. There is of course some stuff on the table there right now and you would expect us to look, so we will see what comes of it."

The maker of Grolsch, Peroni Nastro Azzuro and Miller Lite generates around 80% of its earnings from emerging markets, where it has experienced strong volume growth as demand has been fuelled by socio-economic improvement, rising incomes and a thirst for Western lifestyles.

Karl Lippert, SABMiller’s president for Latin America, declined to comment on recent market rumours linking to the brewer potential $2 billion play for Brazil's second-largest brewer, privately-owned Primo Schincariol, based in Itu, Sao Paulo. "All of this is speculation," Lippert said.

SABMiller started importing products into Brazil in January this year, with operations focused in the south of the country. The Brazilian beer market is dominated by AB InBev, which has around two-thirds of the total market share.


08 July, 2011