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SABMiller completes brand agreement with Scottish & Newcastle

27 January 2006

Ref: 04/2006 

London and Johannesburg, 27 January 2006.  SABMiller plc today announces that its operating subsidiary MILLER BRANDS will complete the planned take back of control over the marketing and distribution of its international premium brands in the UK which include Peroni Nastro Azzurro, Pilsner Urquell, Miller Genuine Draft and Castle Lager.

As of 29 January 2006, Scottish & Newcastle plc will transfer the marketing and distribution responsibility for Miller Genuine Draft and the distribution responsibility for Peroni Nastro Azzurro for off-trade retailers to MILLER BRANDS. Scottish & Newcastle will continue to contract brew Miller Genuine Draft and manage the ‘Miller Beer’ brand under licence in the UK.

This announcement comes at a time of growing momentum for SABMiller’s brands in the UK with notable success in innovative brand marketing campaigns helping to boost the performance of Peroni Nastro Azzurro.

This completion of the agreed handover enables MILLER BRANDS to take a fresh approach to the promotion of Miller Genuine Draft in the UK. Following on from the successful VIP campaign in 2005, a high-profile brand re-launch is planned for March 2006 commencing in the key Scottish market. MILLER BRANDS intends to double the marketing investment behind Miller Genuine Draft in 2006 and make further brand investment behind Peroni Nastro Azzurro.

Gary Whitlie, Managing Director of MILLER BRANDS said;

“This represents the conclusion of MILLER BRANDS taking back SABMiller’s key brands in the UK and importantly now enables us to build direct relationships with all our customers and consumers. We are excited about the next stage of MILLER BRANDS evolution and believe we have the optimal platform from which to best serve customers and support our premium brand initiatives in the UK.” 

Ends

Notes to editors

About SABMiller plc

SABMiller plc is one of the world’s largest brewers with brewing interests or distribution agreements in over 60 countries across five continents. The group’s brands include premium international beers such as Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as an exceptional range of market leading local brands.  Outside the USA, SABMiller plc is also one of the largest bottlers of Coca-Cola products in the world.
 
In the year ended 31 March 2005, the group reported US$2,194 million pre-tax profit and a turnover of US$14,543 million on a UK GAAP basis.  SABMiller plc is listed on the London and Johannesburg stock exchanges.

This announcement is available on the company website: www.sabmiller.com

High resolution images are available for the media to view and download free of charge from: http://www.vismedia.co.uk/

Further information on Miller Brands (UK) is available on http://www.millerbrands.co.uk/

Brand Information

Peroni Nastro Azzurro

Italian style applied to beer.  An intensely crisp and refreshing beer, with an unmistakable touch of Italian style. 

www.peroniitaly.com

Miller Genuine Draft

Cold-filtered for a smooth refreshing taste, it sets the pace for urban night time.  With its slight sweet taste and moderate bitterness, it is a smart choice for a great night out. 

An award winning American-style, premium lager in clear glass packaging and brewed without additives or preservatives. 

www.mgd.com

Pilsner Urquell

Before Pilsner Urquell all beers were dark or cloudy.  The world's first golden beer, it gave its name to a whole new style of beer – Pilsner. 

Pilsner Urquell was first created in 1842 and is still brewed at the original source in Pilsen in the Czech Republic (Pilsner Urquell actually means ‘Pilsner from the original source’). 

www.pilsnerurquell.com

Castle Lager

Castle Lager is perfectly balanced by South Africa's finest brew masters, using the country's best ingredients. 

Brewed since 1895 with local barley and hops, and adding sun ripened South African maize for drinkability. 

It is a proud choice fuelling the spirit of South Africans in the UK. 

www.castlelager.co.za
 

Enquiries    
  SABMiller plc Tel: +44 20 7659 0100
Sue Clark Director of Corporate Affairs Tel: +44 20 7659 0184
Gary Leibowitz Vice President, Investor Relations Tel: +44 20 7659 0174
Nigel Fairbrass Head of Media Relations Tel: +44 7799 894265

This announcement does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of SABMiller plc (the "Company") or any of its affiliates in any jurisdiction or an inducement to enter into investment activity.

This document includes "forward-looking statements".  These statements may contain the words "anticipate", "believe", "intend", "estimate", "expect" and words of similar meaning.  All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company's products and services) are forward-looking statements.  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 from future results, performance or achievements expressed or implied by such forward-looking statements.  These forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies 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 disseminate any updates or revisions to any forward-looking statements contained in this announcement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Any information contained in this announcement on the price at which the Company's securities have been bought or sold in the past, or on the yield on such securities, should not be relied upon as a guide to future performance.

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