Oct. 15 (Bloomberg) -- SABMiller Plc, the world’s second- largest brewer, said beer sales fell in the first half of the year as markets from Europe to South Africa shrank.

Beer sales by volume fell 1 percent in the six months through September, excluding acquisitions, London-based SABMiller said today. That missed the median estimate for unchanged sales from 14 analysts surveyed by Bloomberg News. First-quarter beer shipments were unchanged from a year earlier.

SAB has avoided the more severe declines suffered by rivals Heineken NV and Carlsberg A/S because of its broader presence in more resilient markets in Africa and Asia, where volumes rose 3 percent and 9 percent respectively. Europe was the company’s weakest region, with volume declining 6 percent. In South Africa, where the company was founded and dominates local beer sales, volume fell 3 percent and the brewer lost market share.

“Europe is still a very tough area for SAB and the industry, but the biggest negative is South Africa,” Simon Hales, an analyst at Evolution Securities Ltd. in London, said in an interview. “SAB still has the best global footprint in beer,” which is why overall volumes “are only slightly weak,” said Hales, who has a “sell” rating on the stock.

The shares fell 18 pence, or 1.1 percent, to 1,612 pence in London trading as of 8:16 a.m. SABMiller’s stock has gained 39 percent this year, less than larger rival Anheuser-Busch InBev NV, which has doubled its market value in that time.

Latin America

In Latin America, beer sales fell 1 percent in the quarter, largely because of a 2 percent decline at the brewer’s Bavaria unit in Colombia. The Colombian market has improved since the quarter ended, with year-to-date volumes “turning marginally positive,” SAB spokesman Nigel Fairbrass said by phone.

In the U.S., SAB’s MillerCoors venture with Molson Coors Brewing Co. reported a 1 percent decline in beer shipments, led by falling sales of Miller Lite and Coors Light. SAB’s CR Snow venture in China, which accounts for around 14 percent of the company’s volume, increased sales by 12 percent in the period. Its profitability still trails other divisions because of low prices and high operating costs.

The performance was “in line with our expectations,” and reflects “difficult trading conditions across many of our markets,” SAB said in the statement.

Romania, the Czech Republic and Russia were among the weaker eastern European markets, as sales fell 12 percent and shoppers traded down to cheaper brews, the company said.

Polish sales, down 4 percent for the half, recovered from an 8 percent decline in the first quarter and were “positive” in the second quarter, Fairbrass said.

To contact the reporter on this story: Andrew Cleary in London at acleary7@bloomberg.net.

Last Updated: October 15, 2009 03:26 EDT