10th Aug 2006 07:00
SABMiller PLC10 August 2006 SABMILLER ANNOUNCES AUSTRALIAN JOINT VENTURE London and Johannesburg, 10 August 2006. SABMiller plc, one of the world'sleading brewers, today announces that it has entered into a joint venture withCoca-Cola Amatil (CCA) to import, market and distribute SABMiller'sinternational 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'scomprehensive sales and distribution infrastructure to sell Peroni NastroAzzurro, Pilsner Urquell and Miller Genuine Draft alongside CCA's existingnon-alcoholic beverage portfolio. The joint venture, which is expected to be operational by Christmas 2006following the fulfilment of certain conditions, will be headed by Ari Mervis,formerly Managing Director of SABMiller's Russian operations. During the fouryears under Mr Mervis' leadership, the Russian business grew beer volumes bymore than 150% resulting in SABMiller holding the leading position in theinternational premium sector of this highly competitive market. CCA is the largest non-alcoholic beverage company in the Asia-Pacific region andone 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 thepast five years, driven specifically by international imported premium brands.This transaction reflects SABMiller's continued strategy to invest in itsinternational 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 inAustralia, as we believe that our joint expertise in the beverage industry willgive us the necessary foundation to be a significant player in this segment. "We believe there is enormous potential to grow the premium beer market inAustralia for the Peroni Nastro Azzurro, Miller Genuine Draft and PilsnerUrquell brands, and look forward to working with our partner to build PacificBeverages 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 premiumbeverage brands. When they are combined with SABMiller's world-class marketingcapabilities and CCA's strong customer relationships, sales force anddistribution capabilities, you have a very solid platform to expand the premiumbeer offering in the Australian market. "Over the past three years, CCA's beverage sales to the hotel, restaurant andcafe channel have grown considerably and are now a significant contributor tothe Australian beverage business' earnings. "We are very confident the addition of the international premium beer brands tothe stable will lead to further opportunities to expand our existing customerrelationships." Any profits are likely to be re-invested by the new venture into the businessover 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 ordistribution agreements in over 60 countries across five continents. The group'sbrands include premium international beers such as Miller Genuine Draft, PeroniNastro Azzurro and Pilsner Urquell, as well as an exceptional range of marketleading local brands. Outside the USA, SABMiller plc is also one of the largestbottlers of Coca-Cola products in the world. In the year ended 31 March 2006, the group reported US$2,626 million adjustedpre-tax profit and a turnover of US$15,307 million. SABMiller plc is listed onthe London and Johannesburg stock exchanges. Coca-Cola Amatil Coca-Cola Amatil ('CCA') is the largest non-alcoholic beverage company in theAsia-Pacific region and one of the world's largest Coca-Cola bottlers. Itoperates across six countries - Australia, New Zealand, Indonesia, South Korea,Fiji and Papua New Guinea - and has a diversified portfolio of productsIncluding water, sports drinks, fruit juices, coffee, iced teas and packagedready-to-eat fruit and vegetable products. CCA's group revenue in 2005 was AUSD $4 billion and EBIT was AUSD $570.6million. CCA produced 639 million unit cases of beverages across the group in2005. It currently employs 19,000 people and has 37 manufacturing locationsacross 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 ofcharge from: www.vismedia.co.uk Enquiries: SABMiller plc Tel: +44 20 7659 0100 Sue Clark Director of Corporate Affairs Tel: +44 20 7659 0184 Rachel Kentleton Investor Relations Tel: +44 20 7659 0113Rachel 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 thesolicitation of an offer to buy or acquire securities of SABMiller plc (the"Company") or any of its affiliates in any jurisdiction or an inducement toenter into investment activity. This document includes "forward-looking statements". These statements maycontain the words "anticipate", "believe", "intend", "estimate", "expect" andwords of similar meaning. All statements other than statements of historicalfacts included in this announcement, including, without limitation, thoseregarding the Company's financial position, business strategy, plans andobjectives of management for future operations (including development plans andobjectives relating to the Company's products and services) are forward-lookingstatements. 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 fromfuture results, performance or achievements expressed or implied by suchforward-looking statements. These forward-looking statements are based onnumerous assumptions regarding the Company's present and future businessstrategies 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 disseminateany updates or revisions to any forward-looking statements contained in thisannouncement to reflect any change in the Company's expectations with regardthereto or any change in events, conditions or circumstances on which any suchstatement is based. Any information contained in this announcement on the price at which theCompany's securities have been bought or sold in the past, or on the yield onsuch securities, should not be relied upon as a guide to future performance. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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