UK, London: The world's third largest brewer, SABMiller Plc, announced on January 18 solid growth in its third-quarter beer volumes with organic growth of some 5% in total lager beer volumes. Beer South Africa volumes grew by 4% on a comparable basis, in line with year to date. ABI achieved a volume growth of 6%, against year to date growth of 7%. South African volume growth was supported by good weather and continuing robust consumer spending.

Miller's domestic sales to retailers (STRs) were 0.3% below prior year for the quarter, in a weak industry trading environment, which resulted in an increase in market share. Miller Lite sales, although cycling higher year-on-year comparables, continued to grow in line with our expectations. Domestic STRs for the year to date were 1.5% higher than prior year. Domestic shipments to wholesalers (STWs) were in line with STRs on both a quarterly and year to date basis. Even, sales of its U.S. brand Miller to retailers fell 0.3 per cent in the quarter, the company said it still increased market share because of a weak trading environment. It blamed the drop in the United States on heavy discounting in the beer market in December and rising consumption of wines and spirits. Sales of Miller to retailers for the year to date increased 1 per cent.

In Central America , trade purchases ahead of an anticipated excise increase contributed to a 3% growth in beer volumes in the quarter, and to 2% year to date. Carbonated soft drink volumes were down 8%, against 6% year to date, reflecting tough market conditions in El Salvador.

In Europe, organic lager volume growth for the third quarter was 6%, and 5% for the year to date, influenced by continuing strong performances from Poland , Russia and Romania , which more than offset weakness in Italy , Hungary and Slovakia.

Good growth in both Africa and Asia led to the business delivering a 10% increase , on a comparable basis, in organic lager volume over the third quarter of the prior year, in line with year to date growth.

The London-based group said its South African comparable beer volumes rose 4 percent in the quarter and also in the nine-months to end-December, helped by good summer weather in South Africa and robust consumer spending. South Africa, where the group has a 98 percent share of the beer market, accounts for nearly 40 percent of its annual earnings, and over 60 percent of profits in its second half which includes the South African summer months. "South Africa was a particular bright point. We had a good summer with the economy going well," Finance Director Malcolm Wyman told a briefing after the trading update.

The group has continued the momentum of organic growth achieved in the first half of its financial year, and the financial performance has been in line with our expectations as outlined at the time of our interim results announcement.

SABMiller plc is one of the world's largest brewers, with 2003/04 lager volumes in excess of 137 million hectolitres. It has a brewing presence in over 40 countries across four continents and a portfolio of strong brands and leading market shares in many of the countries in which it has brewing operations. Outside the USA, SABMiller plc is one of the largest bottlers of Coca-Cola products in the world.

In the year ended 31 March 2004, the group generated US$1,391 million pre-tax profit from a turnover of US$12,645 million. SABMiller plc is listed on the London and Johannesburg stock exchanges.

SABMiller, the world's No 3 brewer after Belgium's InBev and Anheuser-Busch, which makes Miller Lite, Castle and Nastro Azzurro, Pilsner Urquell, Peroni and Tyskie beers, is still eager for merger talks with Molson Inc. if the Canadian brewer's merger with U.S. rival Adolph Coors Co. fails. But Molson and Coors sweetened their merger terms last week to shareholders to make the success of their merger plan more likely.

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