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| 11/14/2008 12:00:00 AM

SABMiller brews up first-half profit rise but cuts investment programme

Nov 14 --SABMiller, the global brewer behind Grolsch and Peroni Nastro Azzurro, will cut its capital expenditure by about $500 million (£342 million) next year as it responds to the impact of the consumer spending downturn on many of its biggest markets.

The group said that although it would “continue to invest selectively to support future growth”, it was cutting its $2 billion investment programme to mitigate rising input costs and weakening consumer demand in countries including South Africa, Colombia, Poland and Russia.

Graham Mackay, chief executive, said that the worst-perfoming countries had been those where the ready availability of consumer credit had created a “speculative bubble” that had started to burst. “The issue is the countries where people were living beyond their means,” he said.

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