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SABMiller Plc Unveils Latest African Expansion

The shares of SABMiller (LSE: SAB) (NASDAQOTH: SBMRY.US) were flat at 3,040p this morning after the FTSE 100 drinks giant confirmed the opening of a new $90m brewery in Uganda.

The new facility, operated by SABMiller’s subsidiary Nile Breweries, doubles SABMiller’s capacity in the region to 3.6m hectolitres. The news comes just four years after the company previously doubled its production capacity in Uganda, after expanding its original 1956 brewery on the River Nile in 2009.

Commenting on the news, Managing Director of SABMiller Africa Mark Bowman added:

“Building a second brewery in Uganda is part of our strategy to invest in new capacity across Africa so that we are in a strong position to capitalise on the continent’s long-term beer market growth over the coming decades.”

With a market cap of £49bn, SABMiller’s shares trade at 18 times expected earnings, and offer a respectable prospective dividend yield of 2.4%.

It’s almost impossible to talk about SABMiller without mentioning fellow beverage powerhouse Diageo.

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> Mark does not own any shares in this article.