SABMiller, Molson Coors Name JV Execs

CFO-, CIO-designates named.

SABMiller plc and Molson Coors Brewing Company named two executives for the proposed MillerCoors joint venture.

Tim Wolf, the chief financial officer of Molson Coors, was named chief integration officer-designate of the JV, which is subject to regulatory approval and expected to close this summer.

Gavin Hattersley, the senior vice president of finance for Miller Brewing Company, was named chief financial officer-designate.

As previously announced, Leo Kiely, current CEO of Molson Coors, will be the CEO of the joint venture, and Tom Long, current CEO of Miller, will serve as President and Chief Commercial Officer.

The press release can be seen here.

Is A-B “Running Out of Opportunities” Globally?

Rumors it may make a run for Russian brewer.

Might Anheuser-Busch make a run for the biggest Russian brewer?

Baltik Beverages Holding, the No. 1 Russian brewer, currently is jointly owned by Scottish & Newcastle and Carlsberg SA. But Carlsberg, which teamed up with Heineken NV in a bid for S & N, is poised to take over the whole entity.

But the Daily (London) Telegraph is reporting rumors that A-B might try to crash the party.

From the report:

Anheuser Busch, the US brewing monolith behind the Budweiser brand, has long coveted the Russian business and the coming weeks could present it with its last chance to get its hands on one of the world's fastest growing brewers.

Carlsberg looks set to take full control of BBH, the Russian joint venture, after Scottish & Newcastle accepted a £7.8bn joint takeover bid from the Danish brewer and Heineken last month. However, industry insiders believe there is a chance Anheuser could still crash the party.

The reason is that while A-B has a dominant market share in the United States, it has a limited presence in developing markets that will drive the growth of the global beer industry in years to come.

From the Telegraph story:

One insider at a European brewer said: "For Anheuser it is decision time because it has a problem. They have an historic opportunity with S&N or InBev because they are running out of opportunities. "

Speaking of Russia, SABMiller plc CEO Graham Mackay said the brewer is eyeing expanding its presence in Russia, through acquisition or organic growth.

The Telegraph story can be seen here.

The Financial Times' coverage of Mackay's comments on Russia can be seen here.

Miller Chill Heats Up Competition Down Under

Competitors roll out lemon- and lime-flavored beers in Australia.

Miller Chill has exceeded sales expectations since its launch last December in Australia.

And the competition has noticed.

Lion Nathan is introducing Barefoot Radler, a lemon-and-lime infused beer. Foster’s Group already has rolled out Carlton Fusion, a beer brewed with lime and salt … not unlike Miller Chill.

From the Sydney Morning Herald:

All the big companies believe drinkers want more choice. Lion is targeting Barefoot Radler at existing beer drinkers who want to add yet another beer to their repertoire and those who prefer wine or spirits. Radler-style beers are particularly popular in Germany, where 300 million litres of the stuff are drunk each year.

Miller Chill is doing well, the story reports:

The marketing director of Pacific Beverages, Andrew Walker, said Miller Chill sales were "well ahead of forecast" even though marketing had been low key, limited to on- and off-premise taste tests to communicate what is an unusual combination. "Consumers are always looking to try something different. They don't want to be stuck in a rut."

Pacific Beverages is a joint venture between Coca-Cola Amatil and SABMiller.

The Sydney Morning Herald story can be seen here.

SABMiller, Molson Coors Sign Definitive JV Agreement

Deal expected to close in mid-2008.

SABMiller plc and Molson Coors Brewing Company today announced that they have signed the definitive transaction agreement for the combination of the U.S. and Puerto Rico operations of their respective subsidiaries into MillerCoors LLC.

Graham Mackay, Chief Executive of SABMiller, said, "Today’s announcement is an important step forward towards completing the MillerCoors joint venture, a combination that will ultimately allow us to better meet the needs of distributors, retailers and consumers in the U.S. marketplace by providing greater choice, product availability and increased innovation.”

Leo Kiely, Chief Executive of Molson Coors, said, “This combination of our two highly complementary U.S. businesses creates a stronger brewer and allows us to better compete. We look forward to closing the deal in mid-2008 and are cooperating fully with the regulatory clearance process.”

The transaction is still subject to regulatory clearances.

The deal was first announced in October.

A press release announcing the definitive agreement can be seen here.

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.

SABMiller to Acquire Grolsch

Deal valued at $1.2 billion.

SABMiller plc today announced it has entered into an agreement to acquire the nearly 400-year old Dutch brewer Royal Grolsch NV.

The deal is valued at $1.2 billion.

SABMiller sees opportunities to develop the brand in a number of regions around the globe. From the release:

"SABMiller sees significant potential across Africa and Latin America, where the premium segment is still in its infancy, and in the more developed markets of Central and Eastern Europe. South Africa represents a key opportunity and with the addition of Grolsch, SABMiller will have a particularly strong portfolio of highly differentiated premium brands in that market."

No changes to existing distribution arrangements in Australia, Canada, the United Kingdom or the United States are anticipated at this time. Anheuser-Busch last year acquired distribution rights for Grolsch in the U.S.

In a conference call following the announcement, however, SABMiller Chief Financial Officer Malcolm Wyman said SABMiller "would seek to enter into discussions with [A-B] after the deal is closed."

A-B this morning sent a memo to distributors about the deal. Beer Business Daily characterized the memo as saying it was "business as usual."

Miller STRs Up 1.4 Percent

Miller Lite sales up 2.1 percent on higher prices.

Miller Brewing Company posted a 1.4 percent increase in organic sales to retailers during the six months ended September 30 driven by strong performances from Miller Lite, Miller Chill and worthmore brands.

Domestic net revenue per barrel increased by 3.9 percent due to strong volume and pricing performance by Miller Lite, strong overall portfolio pricing and a migration of the brand portfolio to higher-margin, higher-growth brands.

Miller’s earnings before interest, taxes and amortization (EBITA) increased by 18.5 percent to $300 million, driven primarily by price increases and higher volumes. EBITA includes $16 million due to a retrospective cost adjustment with a can supplier.

Miller’s EBITA margin increased to 10.8% from 9.6%, as unit revenue improvements, favourable mix and the effect of the settlement offset increases in marketing and other costs.

Revenue increased by 6 percent to $2.78 billion.

Miller’s performance was disclosed Thursday in conjunction with SABMiller’s earnings.

"This has been a strong start to the year, demonstrating the strength of our brand portfolio and the health of our businesses,” SABMiller CEO Graham Mackay said in a release. “We have delivered another excellent performance in Europe, and a pleasing return to growth in North America, and our Asian businesses have continued their dramatic momentum with lager volume gains ahead of their respective markets. At the second anniversary of our Bavaria transaction, our volumes have grown strongly in Latin America and our investment plans remain on track."

Miller Lite returned to growth in the period, posting a 2.1 percent increase in sales to retail. At the same time, it increased the average case price by 2.1 percent.

Miller’s worthmore brands also showed strong growth. Peroni Nastro Azzurro’s STRs increased by more than 50 percent. The Leinenkugel’s franchise grew by 27 percent.

Miller Chill, meanwhile, is on track to exceed its first year retail volume target of 400,000 barrels.

Sparks volume grew by 10.8% on a proforma basis during its first full year in the Miller system.

Miller High Life also returned to growth, with STRs up 1.0%, driven in part by the popular delivery guy advertising starring Windell Middlebrooks. Average case prices were up 2.9 percent in supermarkets nationally.

Icehouse STRs were up by 2.0 percent.

Miller Genuine Draft performed in line with full calorie beers, with STRs down 9.3 percent.

Faced by strong competitive pressure from economy beers, the Milwaukee’s Best franchise saw STRs slip 4.0 percent.

Counting new brands, Miller’s STRS increased by 5.9% over the six months (1.4% on an organic basis), while reported domestic shipments increased by 6.7%.

“Miller will continue to increase brand investment to support its current volume momentum,” the company said in a release. “The business will continue to face input cost pressures.”

The SABMiller release can be seen here.

Miller Chill Heads to Australia

Beer to be exported from U.S.

Miller Brewing Company is exporting Miller Chill to Australia, the Wall Street Journal reported today.

The new brand -- a light beer brewed with a hint of lime and salt -- hit the Down Under today.

From the story:

"SABMiller selected Australia as Chill's first international market because of similarities between the Australian and U.S. markets, [Miller spokesman Julian Green] said. SABMiller has about half of a percent of total volume in Australia, according to Mr. Green. The company will import Miller Chill from the U.S., rather than having it brewed in Australia. The average price of a six-pack will be 13 Australian dollars ($11.87)."

Miller Chill, which was launched in test this past spring and went national in the early summer, has surpassed sales targets for the year and has achieved positive cash flow, the story said, citing Miller sources.

Miller Chill has surpassed Heineken Premium Light, Michelob Light and Modelo Especial in dollar share in supermarkets.

The Wall Street Journal story (subscription required) can be seen here.

Adami Retiring

Cites “compelling family circumstances.”

SABMiller plc, the parent of Miller Brewing Company, today announced that top Americas executive Norman Adami will be retiring on November 30.

A release issued by SABMiller says “Norman has expressed a desire to retire and return to South Africa, at an appropriate juncture, due to compelling family circumstances.”

As CEO of SABMiller Americas he handpicked Miller’s current leadership team and integrated SABMiller's Latin American businesses. He will not be replaced.

Adami is best known in the U.S. beer business for his leadership of Miller from 2003 until last year. Miller CEO Tom Long described his accomplishments in a memo to staff this morning:

“Under Norman’s leadership, we rejuvenated Miller Lite, forged a new relationship with our distributors and seized the mantle of the Able Challenger to disrupt the status quo in the American beer business. We also built important new management capability throughout the company.”

Commenting on Adami’s retirement, SABMiller CEO Graham Mackay said:

“Norman has made an enduring contribution to the SABMiller Group and we will greatly miss his wisdom, passion and commitment. One of Norman’s legacies is the strong management team that he has built up in the Americas.

“I respect Norman’s decision to move back to South Africa to support his family and we wish them all success and happiness in this new phase of their lives.”

Long will report directly to Mackay.

SABMiller also announced the retirement of Andre Parker, Managing Director of SABMiller Africa and Asia.

The SABMiller release can be seen here.

Miller Earnings Fall

Commodity costs, Miller Lite decline bite into fiscal year results.

Miller Brewing Company suffered a double digit decline in earnings during the fiscal year ended March 31 due to higher commodity costs, particularly aluminum.

Miller posted earnings before interest, taxes and amortization of $375 million, 17 percent below the prior year, SABMiller plc disclosed in an earnings release Thursday

Commodity cost pressures squeezed the EBITA margin to 7.7 percent from 9.3 percent.

Revenue slipped by 1 percent to $4.9 billion.

Other factors hurting earnings included weakening Miller Lite performance and price competition in the economy segment.

Miller's sales to retailers were flat from the year-earlier period. Backing out the contribution of the Sparks and Steel Reserve brands, which were acquired in August, STRs slipped by 3 percent.

Shipments to distributors were in line with STRs.

Miller Lite sales slipped by 1 percent in face of expanded competition in the light segment. The year saw import and craft beer marketers step up their focus on the light segment, notably with Heineken USA's launch of Heineken Premium Light.

Miller Genuine Draft experienced a sales decline broadly in line with that of the domestic full-calorie segment.

Economy brands suffered in face of increased price competition. However, Miller High Life showed positive trends in core markets later in the year after a new ad campaign was launched.

There were some positive developments. Miller did increase sales of its worthmore brands (including Leinenkugel's, Peroni Nastro Azzurro, Pilsner Urquell and Sparks); deliver domestic revenue increases; and invest in core brands and the organization to position it for sustainable growth. Improved brewery efficiencies partially offset rising commodity costs.

Going into the new fiscal year, Miller is pressing its simple three-point strategy for its brand portfolio. Stoking the growth of Miller Lite. Exploiting growth segments of the beer business with its worthmore brands, including a national launch of Miller Chill, and migrating its portfolio to higher-margin brews. And protecting, and maximizing the profitability, of core brands.

The release can be seen here.

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.”

High Costs Hit Miller Earnings

Offset improved pricing.

Miller Brewing Company’s earnings declined for the fiscal year ended March 31 as higher raw material and packaging costs offset improved pricing, Miller parent company SABMiller plc reported on Thursday.

According to the SABMiller trading update, Miller’s sales-to-retailers were flat from the prior fiscal year. Backing out the Sparks and Steel Reserve brands acquired last year from McKenzie River Brewing Company, STRs dropped by 3 percent

Miller’s STRs (not including Sparks and Steel Reserve) dropped by 2.3 percent in the fourth quarter.

Miller Lite STRs declined by 1 percent for the full year.

Miller’s “worthmore” portfolio -- a strategic priority of the company that includes Leinenkugel’s, Peroni Nastro Azzurro, Pilsner Urquell and Sparks -- experienced a 21 percent increase in STRs for the fiscal year with an acceleration in the fourth quarter.

To see the trading update, click here.

Miller CEO Lays Out Growth Plan

Stoking Miller Lite, fueling worthmore brands is key.

Miller Brewing Company plans to get on the growth track in 2007 after a tough 2006 by redoubling efforts behind Miller Lite as well as driving its portfolio of worthmore brands.

Miller’s plans were laid out Thursday by company CEO Tom Long, who was speaking to an audience of 250 analysts and investors gathered in Scottsdale, Arizona.

Miller plans to return Miller Lite to growth with marketing that positions it as a “better beer,” Long said. This effort intensifies the challenger attitude that helped drive Miller Lite’s renaissance in recent years. The first incarnation is the “GHT” advertising episode now airing.

Long acknowledged that while the Man Laws campaign had social currency, it didn’t meet sales goals.

“Man Laws did not deliver the expected growth,” he said.

Long also pointed to the success of Miller's worthmore brand portfolio, a group that includes imports Peroni Nastro Azzurro and Pilsner Urquell, as well as a group of niche “world brands”; the craft brew Leinenkugel’s; and the soon-to-be launched Miller Chill.

Also, Sparks has been thriving since Miller acquired it -- at least in part because Miller preserved the sales force that made the brand the leader in the caffeinated malt beverage category, Long said

“We are making progress transforming our brand mix to higher-value brands,”
he said. “Including Foster’s, our worthmore organic volume is up near double digits based on brand volume from prior year. With Sparks, our worthmore volume growth is well into the teens.”

Long also pointed out that Miller is dedicating resources to maximize its heritage and legacy brands. For example, the “Take Back the High Life” campaign has significantly slowed the decline of Miller High Life.

Those initiatives are all part of Miller’s five year strategy. Long went through that plan’s six basic thrusts:

* Increase Miller Lite’s share of the light category.

* Strengthen the worthmore brand portfolio

* Maximize heritage/legacy brands.

* Improve the value add with distributors, including a recent managed freight program.

* Reduce operating costs

* Empower the organization, including increasing the authority of field-based general managers to make decisions and holding them accountable to deliver against an agreed P&L.

Miller is “sharply focused on getting back to contributing to the growth of the overall group (SABMiller),” said Gary Leibowitz, senior vice president of investor relations for SABMiller.

For an archived version of the audiocast of the SABMiller presentation (of which Long's speech was a part), go here. The slide presentation also is available.

Beer Business Daily covered the speech here.

SABMiller Well-Positioned in China, Analyst Says

Partnership with CR Snow is working.

SABMiller plc is “arguably the best positioned” European brewer in China thanks to its 49 percent stake in CR Snow, which has surged to become the biggest brewer by volume and revenue in the country, according to a recent report from Merrill Lynch.

Moving forward, the report said, SABMiller is focusing on brand building, particularly behind Snow, which recently became the No. 1 brand in China; driving increased regional scale; and managing price points.

The report maintained a sell rating on Tsingtao -- previously the “undisputed leader in the domestic premium beer segment” -- saying “intensifying competition is likely to require higher marketing spending to simply defend market share, let alone grow it.”

Anheuser-Busch has a minority ownership stake in Tsingtao. In 2004 it also acquired a stake in Harbin after a bidding war with SABMiller.

Chinese Beer Market Heats Up

SABMiller, A-B making moves.

Two global brewing giants are deepening their investment in China, the world’s biggest beer market by volume.

Anheuser-Busch next month will start importing Grupo Modelo brands, including Corona Extra, into China. A-B, which owns 50% of Modelo’s nonvoting shares, already markets Budweiser in China and owns stakes in Harbin and Tsingtao.

From A-B’s press release:

“The popularity and high quality of Corona Extra make it an excellent complement to our Budweiser and Harbin beers,” said August A. Busch IV, president and CEO of Anheuser-Busch Cos. Inc. “Corona Extra competes in the super-premium segment of the market, which is experiencing strong growth. With our continued success in this segment, and our 10 years of sales, marketing and distribution experience, we expect to significantly increase the sales of Corona.”

In another A-B move, Advertising Age this week reported that A-B plans to introduce a product called “Budweiser Genuine Draft” in the Chinese market.

Meanwhile, CR Snow -- SABMiller plc’s partner in China -- plans to expand its presence by building a new brewery in the southern part of the country, Just-Drinks reports (subscription required). Its brand Snow recently surpassed Tsingtao as the best-selling beer in China.

Also, CR Snow has agreed in principle to introduce Miller Genuine Draft into the Chinese market, although no launch date has been set.

SABMiller Winning in China

"Smart positioning" helped establish Snow as the No. 1 beer in China, BusinessWeek reports.

BusinessWeek last week charted the rise of SABMiller plc’s Snow beer brand to become the best-selling beer in China.

For the 12 months ended June 30 CR Snow brewed nearly 40 million barrels of Snow, surpassing the 37 million of previous No. 1 Tsiangtao (partly owned by Anheuser-Busch), the story says.

SABMiller’s success in China has been built on its strategy of acquiring breweries in “less affluent areas, including the northeastern rust belt and the populous inland province of Sichuan” – thereby creating a large footprint without paying steep prices. It also has relied on “smart” marketing to sell the brand.

...It slapped a shiny, modern label on the 50-year-old brew and launched a national ad campaign emphasizing the beer's freshness, complete with sweepstakes that reward winners with outdoorsy vacations. The marketing push is paying off as it presses into the big cities.

SABMiller Expanding Polish Brewery

Meeting increased demand for Tyskie.

SABMiller plc, the parent of Miller Brewing Company, today announced it is investing $100 million to expand the Polish brewery that makes Tyskie.

Miller is planning to expand distribution of Tyskie in the U.S. as part of its broader initiative to market targeted niche imports. As part of that effort, Miller in January will start importing three South American brands.

Tyskie, which is Poland’s best-selling brew, is now sold in a handful of U.S. markets with large Polish populations. Those include Chicago and New York.

An SABMiller release can be seen here.

Miller Contends With Tough Environment

Aluminum costs hit earnings.

SABMiller plc on Thursday reported that rising aluminum and other input costs drove a decline in Miller Brewing Company’s earnings for the six months ended September 30.

Miller’s earnings before interest, taxes and amortization fell 12 percent to $253 million, SABMiller announced in its latest interim financial report. The release can be seen here.

Meanwhile, Miller grappled with a tough competitive environment marked by competitive pricing and market share gains by import and craft beers. Shipments to wholesalers slipped by 3.8 percent during the period (excluding the addition of Sparks and Steel Reserve to the Miller portfolio). By comparison, U.S. domestic shipments grew by 0.3 percent, according to figures from the U.S. Beer Institute.

Miller Lite volumes slipped at a low-single digit rate during the period. Miller has been increasing marketing investment behind the brand, including retail activation. The Miller High Life and Milwaukee’s Best franchises posted mid-single-digit declines. Miller Genuine Draft also declined. Icehouse was flat.

Miller’s “worthmore” portfolio, which includes the craft brew Leinenkugel's and imports Peroni Nastro Azzurro and Pilsner Urquell, posted an 8 percent volume increase. That was driven by the ongoing rollout of Peroni and the launch of Leinenkugel’s Sunset Wheat.

Looking ahead, Miller sees volume comps rising for the industry and easing for Miller. It expects profitability to be affected by ongoing competitive conditions, growth in imports and crafts, increased marketing behind Miller Lite and high commodity and gas prices.

Miller Aims at Niche Markets with New Imports

Media coverage of Miller’s new imports emphasizes impact of fragmentation.

Miller Brewing Company’s move to import three South American beer brands and expand distribution of the Polish brew Tyskie garnered a fair amount of media mentions, including this report from CBS Marketwatch and Reuters.

It also rated a mention Tuesday on CNN’s American Morning. The discussion touched on how the launch fits in with what marketers would call the trend of fragmentation: consumers seeking brands that more fully express their individuality and tastes:

MILES O'BRIEN: You know what's interesting about the beer business is, it's really gone back to the -- its earliest days, when you have just tiny little brands, almost neighborhood brands.

ANDY SERWER: Right.

And that's kind of fun-and you get to try different kinds. I mean you're right, it's going back from this there's going to be one national beer, you know, three or four big mega brands and now we've got all these little mega -- little micro breweries, as well as the imports.

Imports up 7 percent last year in the business and imports now account for 12 percent of beer consumed in the United States.

M. O'BRIEN: So...

SERWER: So it's still got room to grow, I would say.

Miller Expanding Import Portfolio

Will start importing three South American brands, expand distribution of Polish Tyskie.

Miller Brewing Company today announced that in January 2007 it will start importing three South American beer brands.

Miller also plans to expand distribution of Polish brew Tyskie.

The South American beers are Aguila, the most popular beer in Colombia, and two Peruvian brands, Cristal and Cusquena. The brands are owned by Grupo Bavaria SA and its subsidiaries. Bavaria, like Miller, is a unit of SABMiller plc.

Miller plans to be highly targeted in rolling out the brands.

“As the import category continues to gain momentum, we are fortunate to tap into a global portfolio of brands that have great potential in today’s America,” said Tom Cardella, executive vice president of sales and distribution for Miller. “We believe such brands could represent the next wave of import growth.”

Miller is making the moves amid surging popularity for imports. Miller has spent the past year building two high-end brands, Peroni Nastro Azzurro and Pilsner Urquell. These brands remain the top import priority and their rollout is being expanded.

What’s the Next Big Deal?

Beer Business Daily lays out speculative scenarios.

If you’re in the mood for intriguing speculation about the beer industry’s next major transformational deal, Brew Blog recommends Monday’s installment of Beer Business Daily.

A quick rundown of hypothetical scenarios:

SABMiller acquiring MolsonCoors. The trigger for this is a recent research note from investment bank Cazenove.

A-B loosening its exclusivity requirement so that its distributors can purchase Coors or even Miller wholesalers. BBD notes, “Nothing’s off the table at this point, but A-B isn’t ready to fold on the issue of exclusivity.”

A-B acquiring the Absolut brand. Brew Blog has reported on this matter at length.

A-B being purchased or merging. BBD says the most likely buyers would be Diageo or InBev. BBD publisher Harry Schuhmacher adds “I think at this point I have a better chance of being struck by an asteroid. But it could happen.”

Read the whole thing here (subscription required).

SABMiller Acquires Foster’s in India

Plans to expand the brand through its brewery network.

SABMiller plc on Friday agreed to buy the Foster’s Australian lager brand in India for $120 million in cash, subject to certain conditions being fulfilled, the global brewer announced.

Under the agreement, SABMiller -- the second-biggest brewer in India -- will assume ownership of all of Foster’s assets in the country, including the Foster’s brand and a brewery.

SABMiller is buying the brand as Foster’s divests global assets to focus on its wine business, the Financial Times notes (subscription required). Scottish & Newcastle in April bought the brand in Europe.

Foster’s India operates one brewery. SABMiller intends to extend the brand nationally through its network of 10 breweries.

“This transaction enhances our existing portfolio in India and provides us with an exciting opportunity to further increase our premium brand offering,” Andrew Parker, Managing Director of SABMiller Africa and Asia, said in a release. “The acquisition also supplies much needed capacity to fuel the strong growth we have experienced so far this year.”

The SABMiller release can be seen here.