| Thu 10 Aug 2006, 8:01 | | SABMiller announces Australian joint venture |
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SAB
SOSAB
SABMiller announces Australian joint venture
SABMiller Plc
JSE Alpha Code: SAB
Issuer Code: SOSAB
ISIN Code: GB0004835483
SABMILLER ANNOUNCES AUSTRALIAN JOINT VENTURE
London and Johannesburg, 10 August 2006. SABMiller plc, one of the world"s
leading brewers, today announces that it has entered into a joint venture with
Coca-Cola Amatil (CCA) to import, market and distribute SABMiller"s
international premium brands in Australia.
Under the terms of the agreement, SABMiller and CCA will each hold a 50%
interest in the joint venture, which will be known as Pacific Beverages Pty Ltd.
The joint venture will combine SABMiller"s marketing expertise with CCA"s
comprehensive sales and distribution infrastructure to sell Peroni Nastro
Azzurro, Pilsner Urquell and Miller Genuine Draft alongside CCA"s existing non-
alcoholic beverage portfolio.
The joint venture, which is expected to be operational by Christmas 2006
following the fulfilment of certain conditions, will be headed by Ari Mervis,
formerly Managing Director of SABMiller"s Russian operations. During the four
years under Mr Mervis" leadership, the Russian business grew beer volumes by
more than 150% resulting in SABMiller holding the leading position in the
international premium sector of this highly competitive market.
CCA is the largest non-alcoholic beverage company in the Asia-Pacific region and
one of the world"s leading Coca-Cola bottlers, with operations in six countries.
The premium beer market in Australia has grown by 15 percent per annum over the
past five years, driven specifically by international imported premium brands.
This transaction reflects SABMiller"s continued strategy to invest in its
international brand portfolio and expand into growth markets.
Andre Parker, Managing Director of SABMiller Africa and Asia said:
"We are delighted to partner with CCA in growing our premium beer business in
Australia, as we believe that our joint expertise in the beverage industry will
give us the necessary foundation to be a significant player in this segment.
"We believe there is enormous potential to grow the premium beer market in
Australia for the Peroni Nastro Azzurro, Miller Genuine Draft and Pilsner
Urquell brands, and look forward to working with our partner to build Pacific
Beverages into a formidable contender in this category."
Commenting on the transaction, Terry Davis, Managing Director of CCA Group said:
"Both SABMiller and CCA own, market and distribute many of the world"s premium
beverage brands. When they are combined with SABMiller"s world-class marketing
capabilities and CCA"s strong customer relationships, sales force and
distribution capabilities, you have a very solid platform to expand the premium
beer offering in the Australian market.
"Over the past three years, CCA"s beverage sales to the hotel, restaurant and
cafe channel have grown considerably and are now a significant contributor to
the Australian beverage business" earnings.
"We are very confident the addition of the international premium beer brands to
the stable will lead to further opportunities to expand our existing customer
relationships."
Any profits are likely to be re-invested by the new venture into the business
over the first few years to build long-term sustainable brand equity.
Ends
Notes to editors:
SABMiller
SABMiller plc is one of the world"s largest brewers with brewing interests or
distribution agreements in over 60 countries across five 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$2,626 million adjusted
pre-tax profit and a turnover of US$15,307 million. SABMiller plc is listed on
the London and Johannesburg stock exchanges.
Coca-Cola Amatil
Coca-Cola Amatil (`CCA") is the largest non-alcoholic beverage company in the
Asia-Pacific region and one of the world"s largest Coca-Cola bottlers. It
operates across six countries - Australia, New Zealand, Indonesia, South Korea,
Fiji and Papua New Guinea - and has a diversified portfolio of products
Including water, sports drinks, fruit juices, coffee, iced teas and packaged
ready-to-eat fruit and vegetable products.
CCA"s group revenue in 2005 was AUSD $4 billion and EBIT was AUSD $570.6
million. CCA produced 639 million unit cases of beverages across the group in
2005. It currently employs 19,000 people and has 37 manufacturing locations
across its regions
This announcement is available on the company website: www.sabmiller.com
High resolution images are available for the media to view and download free of
charge from: www.vismedia.co.uk
Enquiries:
SABMiller plc Tel: +44 20 7659 0100
Sue Clark Director of Corporate Tel: +44 20 7659 0184
Affairs
Rachel Kentleton Investor Relations Tel: +44 20 7659 0113
Rachel Whittaker Tel: +44 20 7659 0188
James Crampton Media Relations Manager Tel: +44 20 7659 0172
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: 10/08/2006 08:01:04 AM Produced by the JSE SENS Department
