E-Malt.com News article: UK: S&N and SABMiller sign new beer agreement

Scottish & Newcastle and its rival SABMiller announced on July 21 a new agreement on the brewing, sales and distribution of two of SAB's key brands, Miller Genuine Draft and Peroni Nastro Azzurro.

SABMiller plc announced on the same day the launch of MILLER BRANDS (UK) Limited, a new operating company which will manage the sales, marketing and distribution of Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Castle Lager in the UK. For the first time, MILLER BRANDS will drive the strategic direction and investment for all four of SABMiller’s premium brands in the UK. An initial investment of £30 million (US$52 million) over the next two years signals the company’s determination to increase its share of the premium beer market.

As part of this move, SABMiller has reached a new agreement with Scottish & Newcastle plc to transfer the marketing and distribution rights for Miller Genuine Draft to MILLER BRANDS from January 2006. At the same time Scottish & Newcastle will transfer back the distribution rights for Peroni Nastro Azzurro in the off-trade. Scottish & Newcastle will continue to contract brew Miller Genuine Draft and manage the ‘Miller Beer’ brand under licence in the UK.

Gary Whitlie, Managing Director of MILLER BRANDS, commented: “We have an exciting portfolio of well known international brands that we believe has strong growth potential in the UK. Our investment of £30 million demonstrates our commitment to this market and we are determined to bring a fresh approach to satisfying the needs of our customers and consumers. This is a premium brand business which will leverage our considerable global experience in building profitable beer brands.”

Physical distribution of product will commence in October 2005 when MILLER BRANDS takes over responsibility for Pilsner Urquell, Castle Lager and Peroni Nastro Azzurro (on-trade). Miller Genuine Draft will follow in January 2006. The company is based at SABMiller House in Woking and initially creates 35 new jobs.

SABMiller plc is one of the world’s largest brewers, with 2004/05 lager sales volumes in excess of 148 million hectolitres. It has a brewing presence in over 40 countries across four continents and a portfolio of strong brands and leading market shares in many of the countries in which it has brewing operations. Outside the USA, SABMiller plc is one of the largest bottlers of Coca-Cola products in the world.

In the year ended 31 March 2005, the group generated US$2,194 million pre-tax profit from a turnover of US$14,543 million. SABMiller plc is listed on the London and Johannesburg stock exchanges.


23 July, 2005