Miller STRs Up 1.4 Percent

Miller Lite sales up 2.1 percent on higher prices.

Miller Brewing Company posted a 1.4 percent increase in organic sales to retailers during the six months ended September 30 driven by strong performances from Miller Lite, Miller Chill and worthmore brands.

Domestic net revenue per barrel increased by 3.9 percent due to strong volume and pricing performance by Miller Lite, strong overall portfolio pricing and a migration of the brand portfolio to higher-margin, higher-growth brands.

Miller’s earnings before interest, taxes and amortization (EBITA) increased by 18.5 percent to $300 million, driven primarily by price increases and higher volumes. EBITA includes $16 million due to a retrospective cost adjustment with a can supplier.

Miller’s EBITA margin increased to 10.8% from 9.6%, as unit revenue improvements, favourable mix and the effect of the settlement offset increases in marketing and other costs.

Revenue increased by 6 percent to $2.78 billion.

Miller’s performance was disclosed Thursday in conjunction with SABMiller’s earnings.

"This has been a strong start to the year, demonstrating the strength of our brand portfolio and the health of our businesses,” SABMiller CEO Graham Mackay said in a release. “We have delivered another excellent performance in Europe, and a pleasing return to growth in North America, and our Asian businesses have continued their dramatic momentum with lager volume gains ahead of their respective markets. At the second anniversary of our Bavaria transaction, our volumes have grown strongly in Latin America and our investment plans remain on track."

Miller Lite returned to growth in the period, posting a 2.1 percent increase in sales to retail. At the same time, it increased the average case price by 2.1 percent.

Miller’s worthmore brands also showed strong growth. Peroni Nastro Azzurro’s STRs increased by more than 50 percent. The Leinenkugel’s franchise grew by 27 percent.

Miller Chill, meanwhile, is on track to exceed its first year retail volume target of 400,000 barrels.

Sparks volume grew by 10.8% on a proforma basis during its first full year in the Miller system.

Miller High Life also returned to growth, with STRs up 1.0%, driven in part by the popular delivery guy advertising starring Windell Middlebrooks. Average case prices were up 2.9 percent in supermarkets nationally.

Icehouse STRs were up by 2.0 percent.

Miller Genuine Draft performed in line with full calorie beers, with STRs down 9.3 percent.

Faced by strong competitive pressure from economy beers, the Milwaukee’s Best franchise saw STRs slip 4.0 percent.

Counting new brands, Miller’s STRS increased by 5.9% over the six months (1.4% on an organic basis), while reported domestic shipments increased by 6.7%.

“Miller will continue to increase brand investment to support its current volume momentum,” the company said in a release. “The business will continue to face input cost pressures.”

The SABMiller release can be seen here.