Johannesburg - SABMiller, the world’s second-largest beer producer, has seen its UK sales drop in the three months to June as Brits head into Europe to buy their favourite Polish tipple.
The Independent reports that the brewer had said its UK sales have been hit by a variation on booze cruises that has seen people driving to Poland to buy Lech and Tyskie lagers to bring back to the UK while the pound is strong.
SABMiller’s UK sales dropped 4 percent in the first quarter, but the company’s overall results were aided by growth in volumes from Latin America and Africa.
Overall, group net producer revenue (NPR) gained by 3% on level beverage volumes, reflecting group volume growth in all its regions, it said yesterday.
SABMiller introduced the Polish beers to the UK market in 2005.
Two years later, the brewer said sales were growing in triple-digit figures thanks to the influx of migrant Polish workers since Poland’s acceptance to the European Union in 2004.
Some estimates indicate there could be as many as 1 million Poles living in the UK. West London is home to the largest Polish community with Uxbridge the number one area outside London.*
Tyskie and Lech are brewed by SABMiller’s Polish subsidiary, Kompania Piwowarska. The brews can be purchased from pub chains such as Wetherspoons, Enterprise, Laurel and Greene King in addition to well known retailers Thresher, Oddbins, Asda, Sainsbury's and Tesco.
Lech is a medium bodied beer characterised by average sweetness, mild bitterness and a thick, white head. Pilsner Tyskie is golden in colour with a rich foam supported by a fruity and biscuity nose.
SABMiller noted it had a challenging quarter, with group NPR down by 4% and beverage volumes down 6%, driven by a lager volume decline of 8%, reflecting challenges in its key markets.
In a statement to shareholders, SABMiller noted NPR decreased 4% in the United Kingdom, where the
“continued growth of Peroni Nastro Azzurro was offset by declines in the Polish brand portfolio”.
Locally, group NPR gained 5%, driven by selective price increases on strategic packs
and brands, together with premiumisation due to continued strong growth of Castle Lite, said SABMiller.
Lager volume growth of 1% was adversely impacted by the timing of Easter trading and the continued electricity
outages which had a negative effect on consumption.
Soft drinks volumes also grew by 1%, cycling a strong comparative, it said.
IOL