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SABMiller announces construction of $16 million maltings plant in Uganda

15 December 2009


SABMiller's Ugandan subsidiary, Nile Breweries Ltd, today announces that it is to build a US $16 million malting plant following the success of its initiative to convert locally grown barley into brewing malt.

Construction will start in January 2010 on Nile Breweries' existing site in Jinja, and is expected to be completed towards the end of the year.

Mark Bowman, Managing Director of SABMiller Africa said, "The construction of the new maltings plant in Uganda is further evidence of what can be achieved when African governments and business work collaboratively to benefit the local communities in which we operate.

"This significant investment comes as a direct result of the success we have had in Uganda of the local raw material sourcing strategy which we are seeking to introduce across all of our African operations." 

The use of locally sourced raw materials began in 2002 when Nile Breweries launched Eagle Lager and, subsequently, Eagle Extra both of which are brewed using sorghum grown by smallholder farmers in Uganda. Purchases of sorghum by Nile Breweries have multiplied from 1,600 tons in 2003 to a peak of 12,000 tons in 2007 and in doing so provided income of nearly $2m to an estimated 8,000 farmers and associated beneficiaries. This local sourcing model is now being extended to include barley for Nile Breweries' other beer brands, necessitating local malting facilities.

In the 2008 Socio-Economic Impact Study of Nile Breweries Limited operations in Uganda, Professor Ethan Kapstein of INSEAD calculated that the business generated $92m of value added to the Ugandan economy, and directly and indirectly supported 44,000 jobs.

-Ends-


Notes to editors:
SABMiller is one of the world's largest brewers with brewing interests and distribution agreements across six continents. The group's wide portfolio of brands includes premium international beers such as Grolsch, Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as market-leading local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. SABMiller is also one of the largest bottlers of Coca-Cola products in the world.


In the year ended 31 March 2009, the group reported US$3,405 million in adjusted pre-tax profit and group revenue of US$25,302 million. SABMiller 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 www.sabmiller.com


Enquiries:  

SABMiller plc, Tel: +44 20 7659 0100
  
Jonathan Oates, Business Media Relations Manager, Tel: +44 7920 512595
  
Bianca Shevlin,  Coroporate 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. 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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