SABMiller shares slumped last week after a trading update warning of a weaker-than-expected rise in global underlying lager volume. The brewer is finding it tough going in the US, battling with Anheuser to reclaim ground lost to wines and spirits. Sales have also slowed in its home market of South Africa because of poor weather. But, on the bright side, SAB has established itself in emerging markets where drinking beer is still on the rise. And investors can look forward to the benefits of the full integration of Bavaria, which dominates the market in Colombia, Ecuador, Panama and Peru. Even so, says The Business, it is hard to foresee any upcoming impetus for its valuation, which on a 2006 P/E of more than 16 is in the same league as the larger InBev. The Business 22/01/06 page 19

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