SABMiller will seek to expand brands overseas - Miller Brewing Co - Brief Article

Modern Brewery Age, June 17, 2002

Miller Brewing Co. expanded haltingly into foreign markets over the past decade, using licensing agreements with foreign brewers to build presence. The company was hobbled by lack of a distribution system, however, and that's one Miller weakness that the SAB deal will address.

SAB has distribution throughout Africa, China, Eastern Europe and other emerging markets where Miller has not dared to tread.

"We bring a very wide-scale distribution platform through our large emerging business," said SAB CEO Graham Mackay at a Milwaukee press conference. "We will take brands with American values and American connotations into countries where those values are attractive."

Genuine Draft "has the most international potential," said Mackay. "To introduce that into our broad-based business is a no-brainer."

South African Breweries already brews Genuine Draft in Russia and Poland under a licensing agreement with Miller. SAB plans to brew Genuine Draft in other markets once the merger is completed, he said.