28 March, 2007

South Africa: SABMiller sells draft Peroni after Amstel loss

SABMiller Plc, the world's sixth-largest brewer by sales, is starting sales of Peroni Nastro Azzurro lager on draft in South Africa, where Heineken NV this month ended the company's 40-year-old contract to make Amstel beer, Bloomberg reported March 27.

The Italian lager will be available on draft in South Africa as of the end of this month after being introduced in that format in the UK and Italy last year, the London-based brewer said yesterday in an e-mailed statement. Bottled Peroni has been available in the country for 18 months.

To counter the loss of the Amstel contract, SABMiller has said it aims to sell more of its premium Pilsner Urquell and Peroni Nastro Azzurro brands and will look at introducing new versions of existing South African beers. Amstel lager is a premium beer in South Africa, with a market share of 8%.

SABMiller said the end of the contract with Heineken would cut earnings before interest, taxes and amortization by about $80m, or 3c a share, in the next fiscal year.

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