SABMiller Acquires 2 Brands
- Share via
SABMiller, the brewer whose brands include Miller and Pilsner Urquell, agreed to buy alcoholic-beverage brands Sparks and Steel Reserve from San Francisco-based McKenzie River Corp. for $215 million.
The acquisition includes the related trademarks of the brands, the London-based company said Monday. SABMiller and McKenzie River have also entered a product development partnership.
SABMiller is adding fast-growing premium brews to fuel sales growth as U.S. drinkers switch to wine and spirits from traditional beers.
Beer accounts for about 55% of alcohol consumption in the U.S. compared with 60% a decade ago, according to data supplied by Beer Marketer’s Insights.
“SABMiller is investing into a market they believe to be a strong growth market over the next five years,” said Ben Maitland, an analyst at WestLB Equity Markets in London.
Sparks is a citrus-flavored premium malt beverage with added caffeine, taurine, guarana and ginseng, SABMiller said. Steel Reserve is a “high-gravity lager” that is brewed for a minimum of 28 days, according to the statement.
McKenzie River, a beverage marketing firm founded in 1987, introduced the Steel Reserve brand in 1997 and the Sparks brand in 2002.
Sparks and Steel Reserve are already brewed by SABMiller under a contract brewing agreement and are distributed by Miller wholesalers in the U.S.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
