7th Mar 2008 07:00
Diageo PLC07 March 2008 EMBARGOED UNTIL 07:00 GMT 7 MARCH 2008 Diageo, Heineken and Namibia Breweries announce new joint ventures in South Africa Diageo plc ("Diageo"), Heineken International BV ("Heineken") and NamibiaBreweries Limited ("NBL") have today announced that they have reached agreementto form a new joint venture for their combined beer, cider and RTD businesses inSouth Africa, to be called DHN Drinks (Pty) Limited ("DHN Drinks"). The newjoint venture builds on the success of brandhouse Beverages (Pty) Limited ("brandhouse"), the parties' current cost-sharing joint venture in South Africawhich was formed in July 2004. Diageo and Heineken will each own 42.25% of DHN Drinks and NBL will own 15.5%.Each party will share in the profits of DHN Drinks in proportion to theirshareholding. brandhouse will continue to market and distribute the parties'products in South Africa. In addition, Diageo and Heineken will enter into a second new joint venture inSouth Africa ("Supplyco"). Supplyco will construct a brewery and bottling plantin Gauteng province, South Africa, and will produce Amstel and certain other keybrands. Heineken will own 75% and Diageo will own 25% of Supplyco. In the first two years Diageo will invest £100 million in DHN Drinks andSupplyco. The investment meets Diageo's return criteria. The transaction, which is subject to regulatory approval, is expected tocomplete on 31 March 2008. Nick Blazquez, Managing Director of Diageo Africa said: 'The decision by Diageo, Heineken and Namibia Breweries to commit to a closerrelationship in South Africa reflects the success of brandhouse and acknowledgesthe changing nature of the beverage alcohol market in South Africa. We havealready demonstrated that a combined beverage alcohol distribution company cancapitalise on the growth opportunities in markets such as South Africa and thenew structure will enable us to realise further growth opportunities as a resultof the strong platform we will create together.' - more - Tom de Man, Heineken's Regional President Africa and the Middle East, commented: 'With Africa now Heineken's fastest growing region, with the Heineken brandgrowing 70% in South Africa and Amstel very clearly still a favourite with SouthAfrican consumers, there is no better time to invest in growth. Our threebusinesses already have a strong, successful partnership and I am excited aboutthe new opportunities that the combination of our brands and local brewing willcreate.' Sven Thieme, NBL's chairman said: 'Following the successful establishment of brandhouse in 2004, we have as a nextstep put our brands together so as to maximise the mutual benefits of a jointportfolio of premium products. For us this investment means that NBL now has atangible commercial interest in the sales and distribution of all brands thatare part of this new profit sharing venture.' - ENDS - For further information: Investor relations:Sarah Paul+44 (0)20 7927 [email protected] Media relations:Rachael Shaw+44 (0)20 7927 [email protected] John Harrod+44(0)20 [email protected] Analysts and Investors Presentation: At 13.00 (GMT) on Friday 7 March, Stuart Fletcher, President DiageoInternational, and Nick Blazquez, Managing Director Diageo Africa, will host aconference call for analysts and investors. To participate, please use thefollowing dial-in numbers below. Presentation slides will accompany this announcement and will be available from12.00 (GMT) on the home page of http://www.diageo.com. The conference callwill be available on instant replay from 17:00 (GMT) until Monday 7 April usingthe numbers below. Dial in details and contact information follow on next page To participate in the call taking place on 7 March please use the followingdial-in numbers: 0800 279 9640 UK Toll free1866 850 2201 USA Toll free800 099 797 Spain Toll free0800 020 3462 Netherlands Toll free1800 992 779 Ireland Toll free0800 101 1919 Germany Toll free0805 770 152 France Toll free Please quote confirmation code: 2493072 To access the instant replay, the number to call is: 0800 559 3271 UK Toll free1866 883 4489 US Toll free+44 (0)20 7806 1970 International Please quote confirmation code: 2493072 Notes to editor: About Diageo Diageo is the world's leading premium drinks business. With its global vision,and local marketing focus, Diageo brings to consumers an outstanding collectionof beverage alcohol brands across the spirits, wine and beer categoriesincluding Smirnoff, Guinness, Johnnie Walker, Baileys, J&B, Cuervo, CaptainMorgan and Tanqueray, and Beaulieu Vineyard and Sterling Vineyards wines.Diageo trades in some 180 countries around the world and is listed on both theLondon Stock Exchange (DGE) and the New York Stock Exchange (DEO). For moreinformation about Diageo, its people, brands and performance, visit us at http://www.diageo.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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