SABMiller's Colombian Subsidiary Bavaria Invests US$175 Million in Yumbo

28/08/06 SABMiller plc, one of the world’s leading brewers, today announces that its Colombian subsidiary Bavaria will invest US$175 million in a new brewery in Yumbo, on the outskirts of Cali in western Colombia, to keep pace with growing demand in the region.

The new brewery, which will become operational in late 2007, will have an initial capacity of 3.5 million hectolitres, increasing to 4.5 million hectolitres by 2009. It replaces an existing 1.3 million hectolitre facility in the centre of Cali, which is almost 80 years old and is on a site which cannot be expanded.

The new plant, which will be built to a high technological specification, is expected to be world class in quality and productivity, setting a benchmark for other breweries in South America.  It is anticipated that the investment will provide employment for some 200 people and will include two new bottling lines, a keg plant and a new can line from 2009.

Commenting on the new investment, Karl Lippert, the president of Bavaria, said:

“We are confident in the Colombian economy and, importantly, in the support of our consumers. The western parts of Colombia have had to be supplied to a large extent from our Bogotá and Medellin breweries, and this move will allow us finally to catch up with the growing demand in this part of the country. A new brewery such as this is also a great opportunity to take steps forward in production techniques, quality, ergonomics and environmental care, to the benefit of our consumers and our other stakeholders.”