Merger of Breweries May Usurp Bud

Feb 01, 2002

A merger between Miller Brewing Co. of Wisconsin, Scottish & Newcastle and
South African Breweries may emerge by March, reports The Milwaukee Journal Sentinel.
The new company would surpass Anheuser-Busch as the largest brewer in the world.
As part of the deal, Miller’s Milwaukee corporate headquarters — and its roughly
1,000 jobs — would likely remain intact, beer industry analysts said.

Moderator Comment: Will being part of a bigger brewery
mean greater share for Miller brands?

Philip Morris stockholders might find solace in this
type of merger arrangement but it does not mean much for Miller brands performance.
Miller’s problems are a combination of marketing and distribution issues and
an association with other import brands will not do anything to sell more Miller
Genuine Draft or Miller Lite. Microbrews and imports are still a minor piece
of the total beer category. Miller Brewing is competing with Anheuser-Busch
and Coors in the premium segment. Its brand’s efforts will stand or fall on
their own merit and the efforts of the Miller organization. [George Anderson – Moderator]

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