Peru: SABMiller plc announces $102 million investment in Peru
SABMiller plc, one of the world’s leading brewers, announced August 25 that its Peruvian subsidiary Backus and Johnston will invest US$102 million in infrastructural projects in Peru. The investment, which will be made by March 2007, will include the expansion of the brewhouse at its Ate facility to the east of Lima; a new brewhouse at the brewery in Motupe in northern Peru; and a significant upgrade of packaging capability across the country. The investment will also include a further $12 million expenditure on fridges, coolers and trade equipment to improve the accessibility of cold product to all Peruvians.
In addition to the investment above, Backus and Johnston has also announced a proposed merger with Cervesur, its majority owned affiliate and other affiliate companies. This nilpremium transaction will serve to simplify and streamline SABMiller’s operations in Peru into a more directly manageable and accountable holding structure.
Commenting on the new investment, Robert Priday, the president of Backus and Johnston, said: “The investments will serve to extend the production capacity in the brewery plants in Lima as well as interior of the country, which will comply with the most modern technology in brewing, fermentation and packaging processes. The investment will ensure that we can sustain and improve on the high quality of beer we have become renowned for. It is also a reflection of our commitment and confidence in our operation in the country. The steady improvement in the local economy deserves to be rewarded with investments of this nature."
SABMiller plc is one of the world’s largest brewers with brewing interests or distribution agreements in over 60 countries across five continents. The group’s brands include premium international beers such as Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as an exceptional range of market leading local brands. Outside the USA, SABMiller plc is also one of the largest bottlers of Coca-Cola products in the world. In the year ended 31 March 2006, the group reported US$15,307 million in revenues and profit before tax of US$2,453 million. SABMiller plc is listed on the London and Johannesburg stock exchanges.
Backus is the most important brewing company in Peru. Its principal brands are: Cristal, Pilsen Callao and Cusqueña. It has production plants around the country. SABMiller acquired a majority stake in Backus, Peru's largest brewer, in 2005 with its $5.6 billion buyout of Bavaria S.A., Bogota, Colombia.
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