By Teresa Cespedes
LIMA (Reuters) - Brewing giant SABMiller Plc (SAB.L: Quote, Profile, Research, Stock Buzz)(SABJ.J: Quote, Profile, Research, Stock Buzz) said on Thursday it could invest more than $100 million in its Peruvian unit by March 2008 to raise production and consolidate its dominant market share in the country.
Speaking at the Latin American Investment Summit in Lima Peru on Tuesday, SABMiller Peru chief executive Robert Priday forecast 10 percent sales and volume growth this year for its Peruvian brewery Backus y Johnston (BKJi.LM: Quote, Profile, Research, Stock Buzz), which posted 1.569 billion soles ($490 million) in sales last year.
His forecast would be double the 5.1 percent increase in sales revenue posted in 2006, but lower than the 12.3 percent growth in sales volume last year, as measured in hectoliters.
The rapid expansion of the Peruvian economy was fueling 2007 sales growth, Priday said. Peru's gross domestic product grew 8 percent last year, its fastest rate in 11 years.
In tandem with the growth, will be an 8 percent increase in Peru's per capita beer consumption from last year's 33 liters (8.7 U.S. gallons) per capita consumption.
Peru has one of the lowest beer consumption rates in Latin America, making it an attractive market, he added.
Last year, SABMIller invested $102 million in Peru and Priday saw even more investments this year.
"Investment (in Peru) could be more than $100 million," he said. "I can't give you an exact figure, but it will be higher than that of 2006." Continued...
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