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Group reported EBITA marginperformance (%)17.51716.51605 06 07Source: SABMiller plc 2007In China, for example, our priority is to streamline our route to marketby reducing the many tiers between ourselves and the restaurants,bars, supermarkets, stores and street kiosks that carry our products.We’re also capitalising on the huge popularity of the Snow brand tobuild closer relationships with our distributors. In addition, as weacquire further breweries in more places, the product has less farto travel – which is good for both costs and quality.Our South American businesses, meanwhile, are developing theirskills in segmented channel marketing. In Colombia – a country witharound 340,000 outlets – we’ve broken down our channels by typeof drinking occasion and analysed the outlets, consumption patternsand service needs in each case. This process enables us to focusresources, ensuring that each channel gets the right products in theright packaging, accompanied by the right brand messages andmerchandising material.Wider distribution in South AfricaIn South Africa, the informal taverns or ‘shebeens’ that servethe bulk of the population are in the process of being legalised.Once they become legitimate business owners, licensedtaverners can borrow money against their properties and havean incentive to invest in, and upgrade, their premises.For SAB Ltd, the change means we can now deliver straightto the point of sale, making our delivery and distribution moreefficient. As the legalisation process progresses, we’re expandingour distribution with the aim of reaching directly the 30% ofoutlets that account for 80% of volume within the sector.We’re also taking the opportunity to forge relationships withtavern owners, providing expertise and merchandising materialto improve their premises and create a better experience forcustomers. Our Mahlasedi programme has now trained some12,400 newly-licensed taverners in essential business skills.80%volume12,400newly-licensedtavernersWe aim to reach 30% oftaverners in South Africathat account for 80% ofvolume within the sectorIn South Africa ourMahlasedi programmehas now trained some12,400 newly-licensedtavernersWe’re also becoming more sophisticated at creating the rightenvironment at the point of sale. This applies equally to retail outletsand to on-premise settings such as bars and restaurants. OurEuropean businesses have led the way in creating 3D installationsand ‘beer theatres’ with related promotions and events to lift theimage of the product and create a more exciting experience forthe consumer at large super and hypermarkets.The Europe division has also formalised best practice when itcomes to winning at the point of sale. This has led to the SABMiller‘Trade Marketing Way’, a standardised process now being rolled outto other businesses.Trade marketing: ‘big idea, brilliant activation’Each of our European businesses now has a specialised trademarketing function to manage the way we invest at the point ofsale. One of the successes of this new function has been BIBA(big idea, brilliant activation). The concept is that each brandembodies a ‘big idea’ and that brilliant activation at the pointof sale brings this idea to life for the consumer. A key objectiveis to position the product as more than just a commodity.A BIBA project typically involves an eye-catching display orpiece of ‘brand theatre’. In a recent example, the Polishbusiness set up point of sale materials in 8,000 retail outlets topromote one of its upper mainstream brands, Debowe Mocne.The displays continued the ‘beer for men’ theme of the brandadvertising and its associations with reward following hard work.Tools were given away in the accompanying promotion underthe message, ‘Debowe Mocne supports your hobby’. As wellas strengthening relationships with participating retailers, theproject contributed to a 9% increase in brand volumes inthe past year.Overview Operating and financial reviewGovernance Financial statements Shareholder informationNewly-licensed taverner from our Mahlasedi programme.Debowe Mocne leads the strong beer segment in Poland.For more information on our enterprise development initiatives, visitwww.sabmiller.com/sabmiller.com/en_gb/Our+responsibilityChief Executive’s review SABMiller plc Annual Report 200715