Brewer trims plans after profits drop

SABMiller Plc, the world's second-biggest brewer, said it plans to scale back investment and step up cost cutting after tougher beer markets in western Europe contributed to a 7 percent decline in annual profit.

Capital spending this year will be reduced by about 30 percent to $1.5 billion, according to CEO Graham Mackay. The closure of some Colombian distribution depots will help save $37 million annually by 2011, the CEO said yesterday.

London-based SABMiller said it is looking to trim expenses "country by country" as it halts price increases in weaker markets such as South Africa and Colombia. The maker of Grolsch and Miller Genuine Draft is seeking to compensate for shrinking beer shipments.