E-Malt.com News article: United Kingdom: SABMiller’s UK operation delivers best annual results in its history

SABMiller announced on May, 14 that Miller Brands, its UK operation, has delivered its best annual results performance since it was established.

In the year to 31 March 2009, Miller Brands grew its value share of UK premium lager by 20% (Nielsen data), with all its brands significantly outperforming the wider lager market. Peroni Nastro Azzurro delivered 40% year on year volume growth - the equivalent of an additional 35 million bottles. Pilsner Urquell has grown volumes by 20% and, in Scotland, Miller Genuine Draft also outperformed the market (MBUK internal sales figures). This contrasts with overall UK beer market volumes which declined 7% over the same period, with premium beer down by over 6% (BBPA March 09 MAT).

Nick Miller, MD of Miller Brands, says: "Many people in their 20s and 30s, or the so-called ‘Generation Y', are responding to their first ever recession and rather than battening down the hatches as their parents may have done, they are refusing to give up luxuries altogether, choosing instead to buy every-day luxuries such as their favourite beers, foods or toiletries, whilst proving more cautious about spending on ostentatious items like cars and designer handbags."

Recent research by Brunel Universityiv found that, even in a deep recession, Generation Y wants to keep spending on luxury, but that the idea of reward has changed, with ‘luxury' shifting from high cost items, such as watches and cars to ‘new luxury' - smaller, often daily purchases which act as a buffer against the all-pervading recession gloom.

Miller Brands' focus has been on differentiating its beer brands to avoid the commoditisation which has hit the overall beer category; a strategy which has resonated with the Generation Y expectations of every day luxury. Peroni Nastro Azzurro has partnered with iconic Italian fashion designer Antonio Berardi to create a bespoke fashion collection, consisting of high-end clothing and accessories, whilst premium Czech lager Pilsner Urquell recently became the first official beer of the Open Golf Championship, marking the coming together of two great uncompromised originals.

Miller continues: "These partnerships reinforce our brands' provenance and premium status - and they are clearly tapping into the Generation Y concept of new luxury."


15 May, 2009