LIMA, Peru (Reuters) - Brewing giant SABMiller Plc (SAB.L: Quote, Profile, Research, Stock Buzz)(SABJ.J: Quote, Profile, Research, Stock Buzz) on Thursday said it plans to invest $90 million in its Peruvian unit over the next two years to increase production and compete with Brazilian beer maker AmBev (AMBV4.SA: Quote, Profile, Research, Stock Buzz)(ABV.N: Quote, Profile, Research, Stock Buzz).
London-based SABMiller told the Reuters Latin America Investment Summit it expects higher profits in Peru this year compared with $84 million in 2005, including soft drink sales, and aims to increase its local sales by 5.5 percent in 2006.
"We calculate an investment in Peru of $90 million over the next 27 months and this includes improvements in production equipment, logistics, marketing, distribution and packaging," said Peru Chief Executive Officer Robert Priday.
"We will do this with our own funds," he added.
SABMiller, which makes Miller Lite, Castle and Peroni beers, moved into Peru last year when it completed its acquisition of Colombian-based Bavaria and took over Peru's largest brewer, Backus & Johnston (BKJi.LM: Quote, Profile, Research, Stock Buzz).
Backus, which produces the Cristal and Cusquena brands, controls more than 90 percent of the country's beer market.
Peru has one of Latin America's lowest per capita beer consumption rates, making it an attractive market.
AmBev last year launched its Brahma brand in Peru and has won an 18 percent market share in the capital, Lima, home to a third of Peru's population.
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