21st Jul 2005 08:30
Scottish & Newcastle PLC21 July 2005 21 July 2005 SCOTTISH & NEWCASTLE PLC Continuation of S&N strategy to focus on key brands by entering into a newcontractual arrangement with SABMiller in the UK. Scottish & Newcastle plc (S&N) today announces that they have reached a newcontractual arrangement to cover the brewing, marketing, sales and distributionof certain SABMiller plc brands in the UK. Under the terms of the contract, S&NUK will continue to brew Miller Genuine Draft (MGD) and Miller Beer and willretain its role in marketing and distributing the Miller Beer brand. SABMillerwill assume direct management control of Miller Genuine Draft and Peroni NastroAzzurro. As a consequence of the new contractual arrangements, S&N UK will have theopportunity to further develop the Miller Beer brand, particularly in Scotland.SABMiller will set up a stand-alone organisation to sell, distribute and marketMiller Genuine Draft and Peroni Nastro Azzurro in the UK. The deal will be modestly earnings enhancing and strategically significant as itfurther consolidates the S&N UK business around the four key drive brands ofFoster's, Kronenbourg 1664, John Smith's and Strongbow. This is a further move,in addition to the Beck's transfer announced on 27 May 2005, by S&N UK to followits stated strategy to focus on these key brands which grew sales volumes by4.5% in 2004 and are the key drivers of growth. This new agreement will take effect on 30th January 2006. Notes to editors: • S&N UK has been exclusive distributor of MGD since 1997. It has distributed Peroni Nastro Azzurro in the UK off trade since 2000. • MGD represented c.1.3% of S&N UK 2004 beer and cider volumes, with Peroni Nastro Azzurro representing c. 0.3%. • S&N UK is the market leader with a 27% market share in 2004, UK operating profit increased by 11.4% to £176million and S&N UK's beer and cider volumes were up by 1.0%, ahead of the UK beer and cider market at +0.4%. • S&N UK increased A&P investment by 20% in 2004. • The arrangement for the brewing, sales, marketing and distribution of the SABMiller brands in the Republic of Ireland and in Northern Ireland will remain unchanged by this announcement. Enquiries to:Nadja Schaufele (Investors) +44 (0)131 528 2000Linda Bain (Media) +44 (0)131 528 2000 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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