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Miller's parent company SABMiller said Wednesday that it has reached an agreement to buy the U.S. importation rights to the Grolsch brand from Anheuser-Busch. The deal would make Miller the importer of Grolsch, which includes the entire Grolsch brand line-up, including Grolsch Amber Ale, Grolsch Light Lager and Grolsch Blonde Lager.

Anheuser-Busch has imported Grolsch since April 2006 under an agreement with brand owner Royal Grolsch NV. SABMiller PLC, the parent company of Miller Brewing Co., acquired Royal Grolsch NV and the Grolsch brands in February 2008.

"The time is right to end our importation of these brands," said Anheuser-Busch Vice President David A. Peacock. "It is important that our wholesalers who transition these brands are able to protect their investments. This agreement includes provisions for our distributors that will compensate them appropriately."

"Since the time we began importing Grolsch, Anheuser-Busch has expanded its portfolio to include a full range of other high-end imports such as Stella Artois, Beck's and Bass Pale Ale, as well as craft-style beers and non-alcohol beverages," continued Peacock. "Together with our best-selling American brands, including Budweiser, Bud Light and the Michelob family, we now offer the country's most comprehensive line-up of products, and are well positioned in today's changing beverage marketplace."

The agreement gives Miller Brewing's network of around 450 distributors the opportunity to add the Dutch brand to their businesses. Imported beers have grown at nearly 10 percent a year for the last three years and now make up 15 percent of the U.S. beer market.

As a result, Miller Brewing will become the importer of the Grolsch brands.

Anheuser-Busch expects the deal to close by Aug. 1. Financial terms were not disclosed.

Anheuser-Busch noted that the deal includes protections for Anheuser-Busch wholesalers.

Anheuser-Busch shares fell 27 cents to $51.78 in afternoon trading.

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About Grolsch:
Grolsch, an independent Dutch brewer famous for its swing-top bottles in based in the town of Enschede in eastern Holland.

Grolsch’s origins date back to 1615 when Peter Cuyper was recorded as the first owner of the brewery, which was then based in Groenlo.

The brewer principally focuses on its domestic market where it makes around half of its sales. Some 30% of Grolsch’s sales are in the UK, where the brewer’s namesake brand is produced under licence by Coors Brewers.

In 2006, Grolsch secured a US distribution deal with Anheuser-Busch to tap into the growing demand for imported beers in the US.

About Anheuser-Busch:
Among the 13 companies that make up Anheuser-Busch Companies, Anheuser-Busch, Inc. is the leading American brewer, holding 50% of the US beer market. The company is American-owned and operates and brews the world’s largest-selling beers, Budweiser and Bud Light. Anheuser-Busch is the oldest American-owned major brewer in the US.

Anheuser-Busch Cos., Inc. also holds a 50% share in Grupo Modelo, Mexico’s leading brewer, as well as equity investments in China’s Tsingtao Brewery Co.Ltd. and Compañía Cervecerías Unidas Argentina.

The company is one of the largest theme park operators in the US, is a major manufacturer of aluminium cans and is the world’s largest recycler of aluminium beverage containers.

About Miller Brewing:
Frederick J. Miller, began his brewing business in 1855, setting the wheels in motion for what has become the second-largest brewer in the US.

It was after World War II when Miller Brewing Co. garnered national status under the stewardship of Frederick C. Miller, the grandson of the company’s founder. Tragically, Frederick C. Miller died in a plane crash in 1954.

By 1968, Miller had grown to become the eighth-largest brewer in the US. A year later, the brewer was bought by Philip Morris.

In 2002, South African Breweries, which had expanded outside South Africa in emerging markets, bought Miller Brewing Co. in a deal worth US$5.6bn. The enlarged brewer becomes SABMiller plc, listed in London and Johannesburg.

As of 30 September 2006, North America – Miller Brewing Co.’s territory – accounted for 19% of SABMiller beer volumes, some 24% of sales and 12% of operating profit.

The business sells a raft of brands including Miller Lite and Miller Genuine Draft. Miller Brewing Co. imports and distributes brands from the SABMiller international stable, including Peroni and Aguila.

The brewer also holds the US licence to the Foster’s beer brand and brews the Samuel Adams portfolio under licence.

May 14, 2008