Beer giant SABMiller PLC (SAB.JO) said Tuesday lager volumes in South Africa, long a stronghold for the company, dipped 1% in the last fiscal year but increased 6% for the rest of the continent on an organic basis.

The company said volumes eased in a South African market that grew slightly in the last year, although volumes were 8% higher in the final quarter. SABMiller, which traces its origins back to Castle Lager which was launched in South Africa in 1895, faces increasing pressure from rival Heineken NV (HEIA.AE) which recently opened a brewery in the country with partners Diageo PLC (DEO) and Namibian Breweries Ltd. (NBS.WH).

"Consumer spending remained subdued, but our lager sales during the [fourth] quarter benefited from increased investment behind our core brands, strong trade execution and the favorable timing of Easter," the company said.

Soft drinks volumes rose 4% in the final quarter, but declined 2% for the financial year, SABMiller said.

In the rest of Africa, lager volumes increased 6% and soft drink volumes 4% organically for the year, the company said.

In Mozambique, lager volumes were up 11% while volumes in Uganda grew 24% for the year, which it said was assisted by additional capacity and sustained economic growth in the country. In Angola, lager volumes were up 5% on the year thanks to additional capacity but hampered by production and logistical constraints, it said.

Volumes in Tanzania fell 4% for the year, in line with the market, following unseasonable weather earlier in the year. It said that Botswana continues to be hit by a tax on alcohol introduced in November 2008, and full-year lager volumes were down 35%.

-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; robb.stewart@dowjones.com