<strong>SABMiller</strong> <strong>plc</strong> <strong>Annual</strong> Report <strong>2011</strong> 43 Snow CR Snow’s share of China’s beer market increased to 21% with <strong>the</strong> Snow brand commanding a 19% share and streng<strong>the</strong>ning its presence in <strong>the</strong> premium segment with brand extensions such as Snow Draft and Brave <strong>the</strong> World. Overview Business review Governance Financial statements Shareholder information www.snowbeer.com.cn
<strong>SABMiller</strong> <strong>plc</strong> <strong>Annual</strong> Report <strong>2011</strong> 44 Sustainable development Building locally, winning sustainably <strong>SABMiller</strong> has become one of <strong>the</strong> world’s leading brewers by building successful local businesses. The decisions we take every day affect not only our own success, but also have a tangible impact on local economies, communities and <strong>the</strong> environment. Addressing <strong>the</strong> growing challenges we share with society Our businesses make <strong>the</strong>ir greatest contribution to society by delivering high quality products which consumers enjoy. In doing so, <strong>the</strong>y are creating jobs, paying taxes, building <strong>the</strong> skills base and demonstrating that business growth and sustainable development can be mutually reinforcing ra<strong>the</strong>r than in conflict. Our businesses understand that <strong>the</strong>ir profitability depends on healthy communities, growing economies and <strong>the</strong> responsible use of scarce natural resources. We integrate <strong>the</strong>se issues into <strong>the</strong> day to day management of our business through our ten sustainable development priorities. However, we recognise that health, economic and environmental concerns continue to grow around <strong>the</strong> world, and that to protect and grow our business we need to understand <strong>the</strong>se concerns and play our part to resolve <strong>the</strong>m. Most critically for <strong>SABMiller</strong>, <strong>the</strong> increasing focus by both governments and non-governmental organisations (NGOs) regarding social and health challenges, such as alcohol abuse and <strong>the</strong> influence of excessive alcohol consumption as a risk factor in non communicable diseases, is leading to higher regulatory scrutiny and a strong expectation for businesses to play a greater role in leading action to tackle <strong>the</strong>se problems. We share common goals with <strong>the</strong> World Health Organisation as outlined in its Global Strategy to Reduce <strong>the</strong> Harmful Use of Alcohol, which was adopted by <strong>the</strong> World Health Assembly in 2010. Our local businesses are committed to engaging in partnerships to tackle <strong>the</strong> most pressing alcohol abuse concerns in <strong>the</strong>ir communities. However, we believe that <strong>the</strong> narrowing of <strong>the</strong> global alcohol debate to focus almost exclusively on regulatory actions that would reduce or ban marketing, raise prices through increased excise taxes, and restrict alcohol availability as a means to address its abuse, does not present an effective strategy for tackling <strong>the</strong> problem. These policies can have <strong>the</strong> unintended consequence of driving consumers to illicit or unlicensed alcohol. We believe that a broader approach which recognises <strong>the</strong> critical role of <strong>the</strong> proper enforcement of existing regulation to prevent drink driving and underage drinking, and reinforcing consumers’ awareness of <strong>the</strong> health risks of drinking to excess and drinking while pregnant or while taking anti-retroviral drugs has been proven to be more effective. Driving economic development In <strong>the</strong> year, <strong>SABMiller</strong> generated over US$21,072 million of economic value, of which <strong>the</strong> majority was distributed through <strong>the</strong> course of our business to our employees, shareholders and investors, suppliers and governments, as well as to local communities through our corporate social investment activities. Our success makes a major direct contribution to local economies. For example, we have distributed dividends of US$9 million to over 33,000 employees and local retailers in South Africa as part of our Broad-Based Black Economic Empowerment (BBBEE) transaction completed in June 2010. In our value chains, we are working hard to build <strong>the</strong> capability of local farmers. For example, in Mozambique, we are developing a new beer brand using locally sourced cassava which we expect to require over 40,000 tonnes of cassava a year, supporting over 1,500 new farmers and <strong>the</strong>ir dependents. Across <strong>the</strong> group, over 28,000 smallholder farmers are involved in similar programmes. We commission independent research in order to better understand <strong>the</strong> economic impact we make and how it can be improved. Over <strong>the</strong> past two years we have produced analyses of our direct and indirect economic contribution, including economic multipliers, in Uganda, Honduras, <strong>the</strong> Czech Republic, Hungary, Italy, <strong>the</strong> Ne<strong>the</strong>rlands, Poland, Romania, Russia, Slovakia, South Africa, Spain and <strong>the</strong> United Kingdom. All <strong>the</strong>se studies have demonstrated that our activities make a significant positive contribution to <strong>the</strong> local economies in which we work. We recognise a growing interest in <strong>the</strong> level of taxation that global companies pay. We aim to be transparent on this issue and to pay <strong>the</strong> right and correct amount of tax according to <strong>the</strong> laws of each country in which we operate. In <strong>the</strong> year, total taxes borne and collected by <strong>the</strong> group amounted to US$8,400 million (2010: US$7,000 million). This includes excise taxes, transactional taxes and taxes borne by employees, as well as <strong>the</strong> share of our US joint venture’s taxes. We consider this wider tax –3% Water to lager ratio down to 4.2 hl/hl –3% Fossil fuel emissions from energy use at our breweries down to 13.8 kgCO 2 e per hl Water to lager ratio (hl water/hl lager) 5.0 4.0 3.0 2.0 1.0 0 4.6 07 4.6 08 4.5 09 4.3 10 4.2 11 Overview Business review Governance Financial statements Shareholder information
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