SABMiller Taps Australian Craft Beer Market

Joint venture acquires Bluetongue Brewery.

SABMiller plc’s partly owned distribution company in Australia has acquired a leading craft brewer Down Under.

Pacific Beverages, a joint venture with Coca-Cola Amatil Limited, announced today it bought Bluetongue Brewery Pty Limited for an undisclosed sum. Operating from a small brewery in New South Wales, it makes brands including Bluetongue Premium Lager, Bluetongue Premium Light, Bluetongue Traditional Pilsner and Bondi Blonde.

Bluetongue’s brews sell at the premium end of the spectrum and, in U.S. parlance, Bluetongue would be considered a craft brewer. (In Australia Bluetongue is considered a “premium brewer.”)

Through November 2007, the brewer’s sales were up 70 percent.

The premium beer market in Australia has been growing at around 15% per year over the past 6 years, much higher than the domestic mass-market brands.

Pacific Beverages is a 50-50 joint venture between Coca-Cola Amatil and SABMiller to sell and distribute imported premium beer in Australia. It imports SABMiller’s international brands – Peroni Nastro Azzurro, Miller Genuine Draft, Pilsner Urquell, and, recently, Miller Chill – into the Australian market. Pacific also sells and distributes the premium spirits portfolio of global spirits distributor Maxxium, including brands such as Jim Beam, Canadian Club, Remy Martin, Cointreau, The Famous Grouse, and Absolut.

SABMiller’s announcement can be seen here.