SABMiller announces £37.8 million efficiency savings

18 November 2011

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19 November 2011 | Angeline Albert

Purchasers at SABMiller have achieved $60 million (£37.8 million) efficiency savings, the company’s latest financial results reveal.

The brewer’s procurement activities helped lead to cost reductions in packaging for beer kegs and cans, and truck fleet efficiencies. And the group’s decision to centralise the much of its purchasing activity in Switzerland resulted in it being able to better leverage its global buying power.

SABMiller’s financial results for the six months up to 30 September, published this week, revealed revenue is up 10 per cent to $15,688 million (£9,911 million) compared with the six months to September 2010. 

However, rising raw material costs have also had an impact on the brewer. Graham Mackay, chief executive of SABMiller, said market conditions have “remained challenging in the US and much of Europe and increases in input costs have continued, as expected”.

The report said: “Compared with the first half of the current financial year, raw material input costs are expected to increase at a slightly faster rate in the second half and as we enter the following year. Increased investment to support our brand portfolios, sales capabilities and IT will continue, balanced by initiatives to reduce costs and increase efficiency.” 

In the November issue of SM we reported that SABMiller had launched a cassava-based lager to support Mozambique’s farmers, as part of its drive to boost local sourcing. It has created a market for cassava crop by buying directly from farmers and helping them improve yields. Subsidiary Cervejas de Mocambique will brew the Impala lager.    

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