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May 19, 2001
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Money > Business Headlines > Report May 19, 2001 |
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Mallya's UB gets hiccups over San MiguelReeba Zachariah Vijay Mallya's beer flagship, United Breweries, which acquired a majority stake in Associated Breweries, is facing problems in marketing the San Miguel brand. San Miguel beer was being sold in the country by Associated Breweries as it had an exclusive license for manufacturing and marketing with the Philippines-based San Miguel Corporation. However, following the change in management control, the contract with the new owners of Associated Breweries is yet to be renewed. Ever since the UB group took over Associated Breweries in November last year, there has been a shortage of the San Miguel brand in the market. Company dealers said, "We have not received any fresh cases from the company for 2-3 months. Whatever is still available in the market is old stock." Zinia Lawyer, former promoter and current director of Associated Breweries, said: "Due to the change in ownership, we have gone slow in brewing San Miguel." A senior official of the UB group said: "We are in the process of working out a fresh agreement with San Miguel Corporation." However, the official refused to divulge details of the new agreement or whether any changes will be incorporated. UB had acquired a 65 per cent in Associated Breweries for a consideration of Rs 600 million. The company is also planning to buy the remaining 35 per cent over the next two years time. The UB group is also considering the possibility of merging Associated Breweries with its beer company, United Breweries. The acquisition gave UB access to brands such as London Pilsner, London Diet and Maharaja Premium. The group is also planning to launch San Miguel nationally to take on the stiff competition from Fosters. UB's beer brands have a share of 40 per cent in the 700 million-cases-a-year market, valued at Rs 20 billion. Powered by YOU MAY ALSO WANT TO READ:
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