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Miller agrees deal to brew Aussie beer in U.S.

Mon Jun 25, 2007 7:23pm EDT

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MELBOURNE, June 26 (Reuters) - Miller Brewing Co. (SAB.L) said on Tuesday it had entered an agreement with Australian brewer Foster's Group (FGL.AX) to brew the Foster's Lager brand in the United States.

Miller will make the beer according to the brand's original recipe, including a proprietary yeast strain, according to Foster's Americas Managing Director Scott Weiss. Foster's, which is promoted in the U.S. as the "quintessential" Australian beer, has had a new marketing campaign in recent months. It is currently distributed and marketed in the U.S. through a joint venture between Miller and Foster's.

Under the new arrangement, Foster's will be brewed by Miller, the U.S. operation of UK-listed brewer SABMiller, in Forth Worth, Texas, and Albany, Georgia.

Separately, Foster's Chief Executive Trevor O'Hoy said a split of the company's beer and wine companies was not under consideration now, but could be an option in a few years' time, according to the Australian Financial Review.



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