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 jointventure, which will be known as Pacific Beverages Pty Ltd. The joint venture will combineSABMiller’s marketing expertise with CCA’s comprehensive sales and distribution infrastructureto sell Peroni Nastro Azzurro, Pilsner Urquell and Miller Genuine Draft alongside CCA’s existingnon-alcoholic beverage portfolio.The joint venture, which is expected to be operational by Christmas 2006 following the fulfilment ofcertain conditions, will be headed by Ari Mervis, formerly Managing Director of SABMiller’s Russianoperations. During the four years under Mr Mervis’ leadership, the Russian business grew beervolumes by more than 150% resulting in SABMiller holding the leading position in the internationalpremium sector of this highly competitive market.CCA is the largest non-alcoholic beverage company in the Asia-Pacific region and one of theworld’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 fiveyears, driven specifically by international imported premium brands. This transaction reflectsSABMiller’s continued strategy to invest in its international brand portfolio and expand into growthmarkets.André 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 webelieve that our joint expertise in the beverage industry will give us the necessary foundation to bea significant player in this segment.“We believe there is enormous potential to grow the premium beer market in Australia for thePeroni Nastro Azzurro, Miller Genuine Draft and Pilsner Urquell brands, and look forward toworking 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 beveragebrands. When they are combined with SABMiller’s world-class marketing capabilities and CCA’sstrong customer relationships, sales force and distribution capabilities, you have a very solidplatform 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 havegrown 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 leadto 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 yearsto build long-term sustainable brand equity.
SABMILLER ANNOUNCES AUSTRALIAN JOINT VENTURE