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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
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.