One Company Makes Almost All The Beer In Africa And South America

SABMiller makes almost all of the beer consumed in most parts of Africa and South America, which means it can charge whatever it wants.

The British company, whose brands include Grolsch, Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell, also has a stable duopoly in North America and Australia.

Only in Europe and a few other markets does SABMiller face serious competition or pricing pressure.

Little exposure to intense competition was a major reason cited by Citi in upgrading the stock to a buy.

Citi’s Adam Spielman also pointed to SABMiller’s great exposure to emerging markets, where beer consumption is booming.

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