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«Miller Brands Ukraine» summarises the year 2011

«Miller Brands Ukraine», SABMiller plc, summarised the calendar year 2011. Despite the general beer sales stagnation in the Ukraine, the past year was very successful for the company.

According to «Ukrpivo» company, from January to November 2011, the production volumes of «Miller Brands Ukraine» increased by 56.8%, from 9.68 mln dals to 15.18 mln dals of beer. At the same time, the general beer production in the Ukraine for the same period decreased by 2.4%, from 288 mln.dals to 281 mln dals.

In early 2011 «Miller Brands Ukraine» acquired a new technical director, Vassily Basmanov. Mr. Basmanov has been with SABMiller since 1998; before «Miller Brands Ukraine» he managed a beer plant of the Russian SABMiller branch in Vladivostok.

In the Ukraine, Vassily Basmanov managed the complex production modernisation that began right after the plant had been acquired by SABMiller group in 2008. For example, last year the plant in Donetsk started the implementation of World Class Manufacturing system (abbreviated as WCM). WCM is also called «cost-efficient production technology» and it will let the company optimise technological and business processes, and as a result, considerably increase productivity, enhance the product quality and lower costs.

In the fall of 2011, e-scan beer tester was installed at the plant. At this time, it's the only such tool in the Ukraine. It allows fast quality control at every production stage in order to provide maximum taste stability to the ready product during its shelf-life.

Considering the sales volumes skyrocketing in 2012, «Miller Brands Ukraine» intends to expand its production capabilities, since the existing ones have been 100% involved. Before the next season it is planned to install additional fermentation tanks, increase filtration system productivity and partly modify packing lines.

2011 was also successful for the company brands. They not only demonstrated considerable sales growth, but also offered interesting campaigns and projects to consumers.

For example, the exclusives series of «Sarmat» dedicated to «Shakhtar» 75th anniversary hit the stores mid-summer. For the same occasion, «Sarmat» brand launched the campaign «Pint of Sarmat for free!» at «Shaktar» fan-caf? at «Donbass Arena» during the live airings of Donetsk team field games.

Good results were shown by the newest «Miller Brands Ukraine» portfolio brand - Amsterdam Mariner - that emerged on the Ukrainian market in late 2010. Last year this brand successfully sponsored the national indie music contest AmsterdaMusic. The participants included more than 500 bands and solo artists in Indietronica, Indie Rock and Indie Pop styles.

One of the SABMiller plc Ukrainian branch's priorities is high product quality and observing the traditions of classical beer brewing. Prominent international and Ukrainian experts on many occasions confirmed the high quality of «Miller Brands Ukraine» beer made exclusively from natural ingredients, and the last year wasn't an exception.

Amsterdam Mariner received an excellent quality award at the Superior Taste Award ceremony in Brussels (Belgium) organised by the International Taste&Quality Institute - iTQi.

Other national awards included the medals of the XIV International contest of beer, non-alcoholic and low alcohol beverages, mineral and drinking waters that was traditionally organised by «Ukrpivo». This year «Miller Brands Ukraine» products received five new awards - Grand Prix, three golden and one silver medal.

Company success was also noticed by the Ukrainian business community: Based on 2011 results, «Miller Brands Ukraine» general manager Igor Tikhonov joined the list of top 10 best managers of the Ukraine assembled by «Companion» magazine. The rating is based on the voting by high rank managers who evaluate each other's work in the previous year.

«Miller Brands Ukraine» is planning to complete a deal concerning the strategic alliance between SABMiller and Anadolu Efes. Here is how Igor Tikhonov commented on that for «Aktziz» magazine:

«The most awaited event of 2012 is most likely the creation of the strategic alliance between SABMiller and Anadolu Efes.

Anadolu Efes is the biggest beer maker in Europe after four leading global players (SABMiller, AB InBev, Heineken and Carlsberg). The company owns 16 beer plants, seven malt houses and 20 Coca-Cola bottling plants in 15 countries. Anadolu Efes is doing especially well on the growing markets of Turkey, Moldova, on the Caucasus, in Central Asia and the Middle East. The company is the leading beer manufacturer in many of those markets.

By the terms of the deal that we are planning to close shortly, SABMiller plc transfers its assets in the Ukraine and Russia under the management of Anadolu Efes in exchange for 24% shares and representation in the Anadolu Efes board of directors.

The joint enterprise will take the second place on the Russian beer market, from the financial point of view, and the business in the Ukraine will gain considerable profit from working with the joint portfolio of SABMiller brands (Miller Genuine Draft, Redd's, Velkopopovicky Kozel, «Zolotaya Bochka», Amsterdam Mariner, «Sarmat», «Zhigulevskoye») and Anadolu Efes (Efes Pilsener, «Stary Melnik», «Bely Medved» etc.).

The strategic alliance is very promising for both partners, so we are full of optimism for 2012».

19 Jan. 2012

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