SABMiller sets up new marketing venture |
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Sat, 23 Jul 2005 09:35
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LONDON: SABMiller Plc,the world's third-largest brewer, has set up a new operating company, Miller Brands (UK) Ltd, to handle sales, marketing and distribution of its Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Castle Lager brands in the U.K. It is investing 30 million pounds in the new venture in the next two years.
As a sequel to this, the Surrey-based company signed an agreement with Scottish & Newcastle Plc transferring the marketing and distribution rights for Miller Genuine Draft resting with the latter to Miller Brands from January 2006. Scottish & Newcastle will transfer back the distribution rights for Peroni Nastro Azzurro in the off-trade, while it will continue to brew Miller Genuine Draft and Miller Beer and market the Miller Beer brand.
A spokesperson for Edinburgh-based Scottish & Newcastle said, "Now SABMiller will sell and market Miller Genuine Draft, but we will keep brewing it."
The company has been the exclusive distributor of Miller Genuine Draft since 1997, and has distributed Peroni Nastro Azzurro in the U.K. off trade since 2000.
SABMiller Plc is also buying Grupo Empresarial Bavaria of Colombia for $5.6 billion. It will pay $3.5 billion in stock to Colombia's Santo Domingo family for its 71.8 per cent stake in Bavaria, Latin America's second-largest brewer. It will also pay $2.1 billion in cash to minority shareholders of Bavaria's units. The buy-out, described as its largest after the purchase of Miller Brewing Co. three years ago, will give SABMiller brands including Aguila in Colombia and Cristal in Peru.
With $1.9 billion in debt and $1 billion in minority interests, Bavaria is valued at $7.8 billion.
Founded in Johannesburg in 1895, SABMiller got listed on the London Stock Exchange in 1999.
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