Miller Brewing, SAB to make Genuine Draft in Russia

MOSCOW (Reuters) -- Miller Brewing Co. and South African Breweries (SAB) said on Tuesday they had signed a deal to produce Miller Genuine Draft beer in Russia.

A statement by the companies said the U.S. brand would be produced at SAB's two Russian subsidiaries, including the Kaluga Brewery located about 100 kilometers (60 miles) from Moscow.

It will be the third foreign label to be produced in the brewery following Czech Prague Breweries Staropramen and German Holsten-Brauerei group's Holsten brand.

Miller Brewing Co., which is a wholly owned subsidiary of Phillip Morris, produces or has signed licensing agreements to produce its Genuine Draft label in eight countries around the world.

The deal with SAB marks the first time it will be produced in Eastern Europe.

Compared to Western Europe beer consumption in Russia is low, just 30 liters per capita in 1999. However consumption has been growing steadily for the last three years and is expected to reach 37 liters per capita this year.

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