Colombian Beer Sales Down Following Tax Hike, Could Put Long-Term Dent In SABMiller Earnings

The first half results posted by beer major SABMiller were weighed down by a drop in volumes in Latin America. More specifically the firm was affected by a significant drop in sales in Colombia, where volumes fell by 7%. However, demand in Peru and Ecuador was robust, with volumes up by 11% and 4% respectively. The difficulties in Colombia can be traced to new sales taxes and a number of 'dry days' around the county's elections. The significant slump in SABMiller's sales during H110 suggest their impact may be more far-reaching and longer lasting than we anticipated and our forecasts

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