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SABMiller plc announces investment in high growth Vietnamese beer market

13 January 2006

Ref 01/2006

SABMiller plc (“SABMiller”) announces that it has entered into a joint venture with Vietnam Dairy Products Joint Stock Company (“Vinamilk”) to establish a greenfield brewery in the Binh Duong province in southern Vietnam, subject to certain conditions being fulfilled.

Under the terms of the agreement, SABMiller and Vinamilk will each hold a 50% interest in the joint venture investment vehicle, for which the total initial investment capital will be US$ 45 million.  SABMiller’s share of the investment will be settled in cash from existing resources. 

The initial capacity of the brewery, which is expected to be operational by 2007, will be 500k hectolitres, with the ability to expand production to 1 million hectolitres. Such expansion would be funded from operating cashflows.   

Vinamilk is a widely recognised and successful company in Vietnam, and with an estimated 70% market share in milk and related products and beverages, is the national market leader in this sector, with a strong distribution network throughout Vietnam. 

The Vietnamese Ministry of Industry estimates that the beer market in Vietnam has grown from 13 million hectolitres in 2003 to 15 million hectolitres in 2005. The Vietnamese beer market is one of the fastest growing beer markets in the world and is considered to have favourable future prospects.  The transaction reflects SABMiller’s continued strategy to enter high growth developing beer markets.

The joint venture will initially focus on developing a Vietnamese mainstream brand which will be complemented by a premium brand from the SABMiller portfolio of international brands.  The joint venture will firstly concentrate on serving the local market in southern Vietnam, but plans to expand nationally in due course.

André Parker, SABMiller’s Africa & Asia managing director, commented:

“We are delighted to have reached agreement with Vinamilk to enter the high growth Vietnamese beer market. Vinamilk has an extensive distribution network, which will give us access to more than 20,000 outlets in southern Vietnam which retail beer.  We believe that the combination of both parties' expertise will result in a very successful venture".

Mai Kieu Lien, Vinamilk’s general director, commented:
“With SABMiller’s experience in beer markets and Vinamilk’s knowledge of Vietnam, we believe that the joint venture will be extremely successful and will make a considerable contribution to our society.”


Notes to editors

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.

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Vietnam Dairy Products Joint Stock Company (“Vinamilk”)

Vinamilk is the leader in the Vietnamese dairy products market, with its distribution network in all of the 64 provinces of Vietnam. The company has been voted first in the “Top Ten Vietnamese High-quality Goods” survey by consumers since 1995.

Vinamilk has achieved growth of over 20% in recent years. In 2005 the company generated US$355 million turnover and an after-tax profit of US$38 million.

Vinamilk is scheduled to list on the Ho Chi Minh City securities exchange before the end of January 2006.


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
James Crampton,  Media Relations Manager 
Tel: +44 20 7659 0172

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.

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