Announces That Its Peruvian S
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Ref 13/2011 Date 03/07/11 Lighter bottle top crowns strong innovation pipeline at SABMiller SABMiller plc [SAB:LSE/SAB:JNB] announces that its Peruvian subsidiary, Backus, in cooperation with Packaging Products Peru, has developed a new, low-gauge bottle crown that will significantly reduce the amount of steel used in production and have a positive impact on the group’s raw material costs and C02 emissions. SABMiller currently uses approximately 42 billion crowns every year to top bottled lagers and carbonated soft drinks, with an equivalent weight of 100,000 tonnes – nearly twice the weight of the steel used in the Empire State Building. Using conservative estimates, the new low-gauge crown could reduce the amount of steel required across SABMiller’s global production platform by at least ten per cent a year, enough to build London another Olympic stadium. The standard thickness of steel used to create bottle crowns across the brewing industry is between 0.22mm and 0.24mm. Backus’ new, low-gauge crown uses 0.17mm steel, possible thanks to a unique design which embosses a ring around the bottle lip to prevent a ‘spring back’ effect that can lead to leakage and contamination. In the 12 months to 31 March 2010, Backus used around 20 million low-gauge crowns in production at its San Juan plant in Pucallpa City. Following this successful pilot, the low-gauge crowns have been rolled out across the remaining four breweries in Peru, with approximately 80 million low-gauge crowns being used in the twelve months to 31 March 2011. While the Peruvian low-gauge crown is forecast to be fully implemented during the second half of F12 in Peru and Ecuador, other countries and regions are working on similar low-gauge projects. Netherlands based Grolsch brewery has performed trials on a 0.18mm crown from Italian crown producer Pelliconi, and results have encouraged other European countries to follow its lead, with trials being planned for all countries in F12. SABMiller’s partially-owned South African supplier, Coleus, will implement a 0.21mm low-gauge crown, which depends on steel supplier capability Page 1 of 3 Ref 13/2011 Date 03/07/11 constraints but will achieve the same commercial benefits as their European counterparts due to special market conditions. If the Peruvian initiative could be rolled out across SABMiller, it could hypothetically deliver annual cost savings of US$12.6m in material costs alone. The reduced weight of the bottle crowns will also have a positive impact on the environment. Today, a standard bottle crown weighs approximately 2.38 grams. The low-gauge bottle crown will weigh around 2.14 grams, which will mean a 360 gram weight reduction in every pallet being transported to the group’s breweries and from the brewery to retailers and distributors. In addition, reduced weight in transport will deliver as yet unqualified cost savings and reductions in C02 emissions through transportation. Maurice Egan, Group Head of Manufacturing at SABMiller said: “The low-gauge crowns programme is just one example of a cumulative effort across the group to innovate in every aspect of production. Across the globe, we continue to encourage blue-sky thinking that will increase efficiency, improve costs and reduce the impact our business has on the environment.” - ends - Page 2 of 3 Ref 13/2011 Date 03/07/11 Notes to editors Enquiries SABMiller plc is one of the world’s largest brewers with brewing interests and distribution agreements across six SABMiller plc continents. The group’s wide portfolio includes global brands such as Pilsner Urquell, Peroni Nastro Azzurro, Miller t: +44 20 7659 0100 Genuine Draft and Grolsch, as well as leading local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. SABMiller is also one of the world's largest bottlers of Coca-Cola products. Beth Longcroft Business media In the year ended 31 March 2011, the group reported US$4,491million adjusted pre-tax profit and group revenue of relations manager US$28,311 million. SABMiller plc is listed on the London and Johannesburg stock exchanges. SABMiller plc t: +44 207 659 0144 High resolution images and broadcast footage are available for the media to view and download free of charge from M: +44 7425 621 030 the News and media centre on www.sabmiller.com This announcement does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of SABMiller plc (the “Company”) or any of its affiliates in any jurisdiction or an inducement to enter into investment activity. This document includes “forward-looking statements”. These statements may contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect” and words of similar meaning. All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company’s products and services) are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this announcement to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Any information contained in this announcement on the price at which the Company’s securities have been bought or sold in the past, or on the yield on such securities, should not be relied upon as a guide to future performance. Page 3 of 3 .