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» Beverage Industry News » SABMiller, Foster’s in Talks

SABMiller, Foster’s in Talks

Beverage Industry News» Beverage Industry Newsposted Mar 23rd, 2006 by Pat Hagerman

SABMiller has begun talks to buy up rival Foster’s portfolio of breweries in emerging markets of China, Vietnam, and India.

The story that SABMiller and fellow brewer Scottish & Newcastle might be interested in bidding for Foster’s overseas breweries appeared in London’s Sunday Telegraph on Sunday.

A SABMiller spokesperson said the company would not comment on market speculation.

Australia-based Foster’s last week indicated hat it is looking to sell its overseas brewery assets, with the intent of outsourcing production while retaining ownership of its brands.

SABMiller already brews Foster’s beer under license in the United States. The addition of capacity via a Foster’s acquisition could therefore further improve the company’s production scales in countries with substantial potential like China and India.

SABMiller CEO Graham Mackay has said that these countries offered the group long-term growth potential given their currently low beer consumption per capita.

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Pat Hagerman

Posted by Pat Hagerman

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