RNS Number : 7475O
13 March 2009

Ref: 07/2009

13 March 2009

SABMiller joint venture announces first acquisition in Shandong Province

China Resources Snow Breweries Limited ("CR Snow"), SABMiller's joint venture in China with China Resources Enterprise, Limited ("CRE"), announces that it has agreed to acquire the brewing assets of Shandong Hupo Brewery ("Hupo Brewery") through the formation of a joint venture in which it will initially own a 90% equity interest. CR Snow will acquire the remaining 10% within three years after the joint venture is formed. The total cash consideration for the acquisitions amounts to approximately $42 million. 

Hupo Brewery is situated in Zouping county, northern Shandong Province. More beer is consumed in Shandong Province than any other province in China and Zouping county serves as a transportation hub to neighbouring major cities such as Binzhou, JinanZibo and Dongying. 

Hupo Brewery has an annual production capacity of 2.7 million hectolitres and upon completion of the acquisition, approximately $8 million will be spent on technology upgrades to the existing facilities in order to increase its capacity to 3 million hectolitres and ensure the production requirements are sufficient to produce the brand SNOW. 

On 26th February 2009, CR Snow announced that it had agreed to acquire three breweries in each of AnhuiLiaoning and Zhejiang Provinces in three separate transactions. 

Mr. Ari Mervis, Managing Director of SABMiller Asia, said; "SNOW continues to enjoy good growth in China and the significant import sales volume that the brand already enjoys in the province certainly justifies the establishment of a production base here. The brewery has a strategic location in northern Shandong and is well connected by highways to the other major cities in this region.

Mr. Long Chen, Managing Director of China Resources Enterprise, Limited said, "The acquisition of Hupo Brewery will raise our market presence in Shandong Province which is currently the largest beer sales province of ChinaIt is a major step for us to complete the distribution network in the coastal regions of eastern China.


Notes to editors:

About SABMiller plc

SABMiller plc 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 2008, the group reported US$3,639 million in adjusted pre-tax profit and revenue of US$21,410 million. SABMiller plc is listed on the London and Johannesburg stock exchanges. 

About China Resources Snow Breweries Limited

China Resources Snow Breweries Limited was established in 1993 and became a joint venture with SABMIller plc in 1994. It is engaged in the production, sales and marketing of beer in China. Its shareholders are China Resources Enterprise, Limited and SABMiller Asia Limited, a subsidiary of SABMiller plc. China Resources Enterprise, Limited has a 51% interest in China Resources Snow Breweries Limited while SABMiller Asia Limited holds the remaining 49% interest. It operates about 60 breweries in the Chinese Mainland with a total sales volume of about 6.9 million kiloliters in 2007.

About China Resources Enterprise, Limited

China Resources Enterprise, Limited is listed on the Hong Kong Stock Exchange and is also one of the constituent stocks of the Hang Seng Index in Hong Kong. The Group focuses on the consumer businesses in both the Chinese Mainland and Hong Kong, with core activities being retail, beverage, food processing and distribution, textile and property investment.

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 or www.newscast.co.uk


SABMiller plc 

Tel: +44 20 7659 0100

Sue Clark

Director of Corporate Affairs

Tel: +44 20 7659 0184

Gary Leibowitz

Senior 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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