Brewer faces battle to turn around Australian acquisition

Brewer SABMiller is set for a tough battle to turn around its Australian Foster’s acquisition as its beer volumes sink and it loses key import contracts.

Investors are unconvinced that SABMiller, which has built up its business around fast-growing emerging markets, made the right move in buying the leading player in mature market Australia when its beer volumes, profit and market share were all going south. SABMiller’s shares have underperformed its main rival Anheuser Busch InBev.

SABMiller spent $11.8bn (€9.5bn) last year on Foster’s and set out ambitious targets to reverse its decline in a market where beer has lost out to wine and volumes have been flat for nearly 20 years.