| Thu 29 Mar 2007, 9:00 | | SAB - SABMiller plc - New Brewery Investment in Ru |
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SAB
SOSAB
SAB - SABMiller plc - New Brewery Investment in Russia.
SABMiller plc
JSEALPHA CODE SAB
ISSUER CODE SOSAB
ISIN CODE GB0004835483
29 March 2007
SABMiller announces new brewery investment in Russia
SABMiller plc, one of the world`s leading brewers, announces that its Russian
operations will invest approximately US$170 million in the construction of a new
brewery outside the city of Ulyanovsk, which is located approximately 1000
kilometres East of Moscow. The city of Ulyanovsk, which lies on the Volga
river, enjoys good road and rail links and is home to a number of raw material
suppliers.
The new brewery, which will have an initial capacity of 3 million hectolitres,
is expected to be operational in early 2009 and will complement the group`s
existing brewery in Kaluga, which is located some 180 kilometres south west of
Moscow. SABMiller`s business in Russia has enjoyed compound annual volume
growth of approximately 30% over the last 5 years, and its Kaluga site has now
been expanded to a capacity of 6 million hectolitres. Both breweries will
produce SABMiller`s Russian brands, including Zolotaya Bochka ("Golden Barrel"),
Miller Genuine Draft and Velkopopovicky Kozel; which together comprise 3 of
Russia`s top 10 leading brands in the premium segment.
Alan Clark, managing director of SABMiller Europe, commented:
"Russia remains a strategically important market for SABMiller and this
investment will enable us to maintain our strong growth profile in the premium
segment, whilst optimising our transport costs and at the same time improving
our service levels to distributors and big retailers."
SABMiller`s current market share in Russia is 6% on a volume basis, or an
estimated 15% of industry profitability. In the year to March 2006, the company
generated volume growth of 14% in Russia, twice the rate of the market.
Ends
Notes to editors:
SABMiller plc is one of the world`s largest brewers with brewing interests or
distribution agreements in over 60 countries across six continents. The group`s
brands include premium international beers such as Miller Genuine Draft, Peroni
Nastro Azzurro and Pilsner Urquell, as well as an exceptional range of market
leading local brands. Outside the USA, SABMiller plc is also one of the largest
bottlers of Coca-Cola products in the world.
In the year ended 31 March 2006, the group reported US$15,307 million in revenue
and profit before tax of $2,453 million. SABMiller plc is listed on the London
and Johannesburg stock exchanges.
This announcement is available on the company website: www.sabmiller.com
Enquiries
SABMiller plc
Tel: +44 20 7659 0100
Sue Clark
Director of Corporate Affairs
Tel: +44 20 7659 0184
Kelly Mulvey
Senior Manager, Investor Relations
Tel: +44 20 7659 0176
Nigel Fairbrass
Head of Media Relations
Tel: +44 7799 894 265
This announcement does not constitute an offer to sell or issue or the
solicitation of an offer to buy or acquire securities of SABMiller plc (the
"Company") or any of its affiliates in any jurisdiction or an inducement to
enter into investment activity.
This document includes "forward-looking statements". These statements may
contain the words "anticipate", "believe", "intend", "estimate", "expect" and
words of similar meaning. All statements other than statements of historical
facts included in this announcement, including, without limitation, those
regarding the Company`s financial position, business strategy, plans and
objectives of management for future operations (including development plans and
objectives relating to the Company`s products and services) are forward-looking
statements. These forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause the actual results,
performance or achievements of the Company to be materially different from
future results, performance or achievements expressed or implied by such
forward-
looking statements. These forward-looking statements are based on numerous
assumptions regarding the Company`s present and future business strategies and
the environment in which the Company will operate in the future. These forward-
looking statements speak only as at the date of this announcement. The Company
expressly disclaims any obligation or undertaking to disseminate any updates or
revisions to any forward-looking statements contained in this announcement to
reflect any change in the Company`s expectations with regard thereto or any
change in events, conditions or circumstances on which any such statement is
based. Any information contained in this announcement on the price at which the
Company`s securities have been bought or sold in the past, or on the yield on
such securities, should not be relied upon as a guide to future performance.
Date: 29/03/2007 09:00:06 Produced by the JSE SENS Department.
