SABMiller pumps £30m in speciality beer drive

by John Harrington

SABMiller is setting its sights on the speciality beers market as it looks to bring new beers from its global portfolio to the UK.

In the week that it took a controlling share in Latin American brewer Bavaria for US$7.8bn, the brewing giant said it would plough £30m over the next two years into driving sales of its existing brands Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft (MGD) and Castle Lager.

To support its ambitious plans for the UK, it has set up a new division, Miller Brands, focused on growing the four beers. This will take control of Peroni Nastro Azzurro, Pilsner Urquell and Castle Lager from 1 October. Scottish Courage will transfer marketing and distribution rights for MGD from 30 January, 2006.

Miller Brands marketing director Jean-Pierre van Lin said that having the 'narrow focus of just these four brands, which he said are all market leaders in their home countries, will allow the new operation to concentrate on the growing speciality beer sector.

Van Lin said SABMiller is one month into a four-month consultation with pub companies and individual operators to discuss the way forward for the products once Miller Brands goes live.

Bavaria, which has leading market positions in four South American countries, owns four key specialist beers: Aguila, Cristal, Pilsener and Atlas.

Van Lin added: 'Our approach is very much about understanding the consumer, so we will be keeping our eyes and ears open for brands we own that might find a place in the UK.