SAB Ltd, a major earnings contributor to world number two brewer SABMiller Plc, said on September 25 it expected double digit growth in its premium beer market in South Africa over the next 10 years, according to Reuters. SAB Ltd is the South African operation of SABMiller and contributed some 31.5 % of the group's total earnings before interest, tax and amortisation in the year to the end of March, 2003 -- or $338 million.

The firm said the premium market currently made up about 4% of South Africa's total beer market, of which it had a 73 % market share. SAB's premium brands include Amstel, Castle Light, Sterling, Miller Genuine Draft and Pilsner Urquell. SAB Ltd head of communications Michael Farr said in a statement that the premium market was growing at a compound rate of around 16 %.

"We believe that given current trends, the premium sector will continue to grow until it constitutes approximately eight percent of the total market, in line with international norms," he said. "SAB Ltd is extremely well placed to take advantage of this trend, and we remain committed to offering brands in this sector to assist it to achieve growth over a long period of time."

26 September, 2003