SABMiller plc Consumer Analyst Group of Europe
Managed operations in 16 countries
Castel operations in 22 countries
Leadership in 30 countries
Coca-Cola bottlers in 20 countries
Eoin Treacy's view Demand growth for soft and alcoholic beverages
across the globe is reflected in the outperformance of the drinks sector. Such
companies typify our Autonomies theme because they are globally present, dominate
their respective niches, are leveraged to the growth of the global disposable
income class, generally have strong balance sheets and pay competitive dividends.
As
repeated in the above report, the general opinion of Africa is shaded by a negative
perception of war, corruption and poverty. However, this ignores the fact that
it is one of the fastest growing global regions, albeit coming from a very low
base. SAB Miller's origins in South Africa lend it an advantage in developing
other African markets as the regional consumer class develops.
The
share is an S&P Europe 350 dividend
aristocrat and yields 2.12%. It has rallied impressively over the last 10 weeks
and is becoming increasingly overextended relative to the 200-day MA. The first
clear downward dynamic will probably signal the onset of a reversion towards
the ascending 200-day MA.
I
last reviewed the global alcoholic beverages sector in Comment of the Day on
July
20th following Heineken's purchase of Asia Pacific Breweries. The commonality
of the sector has been such that the majority of brewers have performed extremely
impressively over the last few months but they are becoming increasingly susceptible
to mean reversion.