3rd Jul 2006 07:02
SABMiller PLC03 July 2006 SABMiller acquires Sparks(R) and Steel Reserve(R) brands London and Johannesburg, 3 July 2006. SABMiller plc announces that it hasentered into an agreement to acquire the Sparks(R) and Steel Reserve(R) brandsand related trademarks from US contract brewing partner McKenzie RiverCorporation ("McKenzie River") for a cash consideration of US$215m. In addition,SABMiller and McKenzie River have agreed an ongoing new product developmentpartnership. Sparks(R) is a citrus flavored premium malt beverage with added caffeine,taurine, guarana and ginseng and is the leader in the high growth caffeinatedalcoholic malt beverage category. The brand is available in three variants:Sparks Orange(R) (original), Sparks Plus(R) and Sparks Light(R). Sparks(R)achieved a compound annual growth rate of 107 percent between 2003 and 2005,selling 317,000 hl in 2005. Steel Reserve(R) is a high gravity lager which is slow brewed for a minimum of28 days. It is the leading brand in the US high gravity lager category and hasgrown at a 35 percent compound annual growth rate between 2003 and 2005 with atotal of 1.6 million hl sold in 2005. McKenzie River is a San Francisco based beverage marketing firm with animpressive track record for innovation aimed at developing new products. Thecompany, which was founded in 1987 by President Minott Wessinger, launched theSteel Reserve(R) brand in 1997 and the Sparks(R) brand in 2002. Completion of the transaction is subject to the customary review by U.S.antitrust authorities Norman Adami, President and CEO of Miller Brewing Company, commented: "Sparks and Steel Reserve will have an immediate positive impact on our growthprofile. In addition, our new product development relationship with MinottWessinger connects us with a very special guy when it comes to innovation." 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. This announcement is available on www.sabmiller.com For further information on the Sparks(R) and Steel Reserve(R) brands pleasevisit: www.sparks.com www.steelbrewing.com Enquiries: SABMiller plc Tel: +44 20 7659 0100 Sue Clark Director of Corporate Affairs Tel: +44 20 7659 0184 Gary Leibowitz Senior Vice President, Investor Tel: +44 20 7659 0119 Relations Nigel Fairbrass Head of Media Relations Tel: +44 20 7659 0105 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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