SABMiller acquires Russian brewer

June 12, 2008: SABMiller has acquired Russian brewer LLC Vladpivo for an undisclosed price.

Vladpivo, the largest brewer in the Russian Far East Primorie region, is located near the city of Vladivostok and has an annual capacity of 1 million hectolitres. The value of the gross assets to be acquired is approximately $69 million.

The Russian Far East represents approximately 7.6% of the Russian beer market and is projected to grow faster than the total Russian beer market from 2007 to 2013. This acquisition will accelerate SABMiller’s growth in the region.

James Wilson, of SABMiller, said: “The acquisition of Vladpivo complements our existing capability and will allow us to expand the presence of our worthmore brands, by providing us with a more competitive logistics configuration and better access to our consumers in this important and attractive region.”

Vladpivo will become SABMiller’s third production facility in the country, in addition to its main brewery in Kaluga and the site in Ulyanovsk, which is currently under construction and expected to be commissioned in early 2009.

In advance of production of SABMiller RUS's premium portfolio, the brewery will undergo a substantial programme of investment.