SABMiller in U.S. Market “Forever,” Chairman Says

SABMiller execs endorse U.S. leadership.

LAS VEGAS -- Meyer Kahn, the chairman of SABMiller plc, on Wednesday affirmed the holding company’s commitment to Miller Brewing Company and to the U.S. market.

Miller, which went through a tough 2006, has been called a weak link in SABMiller by some industry pundits. But Kahn made clear SABMiller plans to stay in the U.S. market -- and win.

“We will not go quietly into the night,” he said during a roundtable discussion with SABMiller executives at the Miller Distributor Conference. SABMiller is in the U.S. "to stay, forever.”

He added that SABMiller didn’t enter the U.S. market to buy a “white flag.”

While acknowledging the cost and competitive pressures confronting Miller, Kahn said “none of the (challenges) we face are unmanageable or insurmountable.”

Indeed, he said the fact Anheuser-Busch reacted “violently” to the strengthened Miller was “flattering.” A-B in 2005 collapsed its long-held price premium in face of Miller Lite’s growth.

SABMiller CEO Graham Mackay said he had “tremendous confidence” in Miller’s leadership team led by President and CEO Tom Long. The group, which was put in place last summer, is “gelling remarkably well.” He noted the group weathered many challenges in 2006 -- including a steep increase in aluminum costs -- and praised the strategies laid out at the conference.

Norman Adami, the CEO of SABMiller Americas and the previous CEO of Miller, noted that he picked the current team and has a “great deal of confidence in their ability to do the job. These guys are winners.”