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SABMiller wins Namibia licence

Sep 08 2009 13:15

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Johannesburg Brewing giant SABMiller said on Tuesday it was awarded a brewing licence in Namibia to compete with rival Diageo Plc.

SABMiller said it plans to invest in the construction of a brewery at a site yet to be confirmed in Namibia through its new unit, SABMiller Namibia.

The brewing giant has been importing beer into Namibia through Castle Brewing Namibia for more than 20 years. It said it has about 22% of the Namibian market through brands such as Castle Lager, Carling Black Label, Peroni Nastro Azzurro and Castle Lite.

"The Namibian government's decision to grant us this licence is a milestone as we have sought brewing rights in Namibia for the past decade," said Cobus Bruwer, managing director of Castle Brewing Namibia.

British drinks giant Diageo and Dutch brewer Heineken have strengthened their ties in South Africa and plan to take on dominant domestic brewer SABMiller by building a brewery here by end-2009.

Diageo and Namibia Breweries Ltd have an agreement to combine their distribution networks in southern Africa, outside South Africa and Namibia, with Diageo taking commercial responsibility for the combined portfolio.

Last month, the London High Court granted SABMiller Plc an injunction to freeze a move by rival Diageo Plc to take a stake in a Tanzanian brewery and end a key contract.

"The High Court in London has granted SABMiller an injunction which stops (Kenya's) East African Breweries Ltd (majority owned by Diageo) from purchasing Serengeti Breweries Ltd (SBL)," said a summary of the High Court judgement.

- Reuters

 
 
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