04-20-2010 - Vol. 12 / No. 43MillerCoors sales-to-retailers improved lots since Jan, but still down 4% in tuff 1st qtr, SABMiller reported this morn in trading update. Sales-to-wholesalers down 3.6% in qtr. Premium light STRs down mid-single digits with both Miller Lite and Coors Light down, "partially offset" by continued growth in MGD64. Below premium brands down low-singles, while craft/import up mid-singles, "driven by strong" Blue Moon. Coors Banquet "grew slightly." For 12 mos in SABMiller fiscal yr ending Mar 31, MillerCoors STRs and STWS down 2.3%.
Total SABMiller sales an upside surprise in qtr with 2% growth, led by surge in South America, including Columbia up 13%. Flat for yr. South Africa also had strong qtr, up 8%. SABMiller said it is beginning to see "signs of recovery" in some parts of world. UBS team said this is "more bullish than previous commentary" and expected news to drive upgrades. Also said MillerCoors "not as bad as expected" in latest qtr (had expected -5%) . "This suggests…no destocking" in qtr and "MillerCoors taking share from ABI," tho "unclear how much" since ABI has not yet released. Meanwhile, SABMiller's qtr surge boosted stock price 3-4% today, pretty near 2000 p, almost double in last yr.
