Weather chills SABMiller's sales in China

Peroni and Carling Black Label brewer SABMiller today warned that sales growth has slowed after severe winter weather in China hit demand for beer in one of its fastest growing markets.

The world's third-largest brewer said the amount of beer sold rose 7% in the three months to March compared with 9% in the previous nine months. In China, beer sales were curbed by blizzards in February.

The London-listed firm has launched an assault on Stella Artois in Britain as it pushes its popular Peroni Nastro Azzurro lager. However, the British beer market is suffering from the smoking ban, which has kept drinkers out of pubs, and a slowdown in consumer spending.

"The underlying performance of the group has been good and was at the upper end of management's expectations," it said today.