SABMiller Plc share price up, acquires UK craft brewer Meantime

SABMiller, the worlds second-biggest brewing company, announced on Friday it is gaining a foothold into the fast growing British craft beer market by acquiring Meantime Brewing Company for an undisclosed sum.

The global beer giant said it plans to boost the craft brewerys sales and explore export opportunities in its European markets under the continued leadership of Nick Miller, Meantimes chief executive officer. The transaction, expected to be finalized in early June 2015, comes at a time of stagnant sales of mass-market beers, which have seen increasing pressure from craft brewers as consumers become more attracted to locally-produced unique beers.

Meantime was founded in 1999 in Greenwich by Brew Master Alastair Hook and has since then created a successful range of British and international beer styles, SABMiller said. Meantime sales surged 58% in 2014, compared to the UK beer markets anemic 1% growth, ranking it among the top-performing modern craft breweries in Britain.

“Meantime has been at the forefront of the modern craft beer movement in the UK and brews an outstanding range of beers across a variety of styles,” said Sue Clark, managing director of SABMiller Europe. “At SABMiller we love local variety, and carefully nurture our 200 local and heritage beers. Meantime, born in a city with a rich beer heritage, will be a special new addition to the SABMiller family.”

The acquisition will include Meantimes retail sales, including the Tasting Rooms and the brewery shop in Greenwich, the Greenwich Union and Beerbox pubs, and the Brewery Fresh tank beer concept. Following the completion of the deal, Meantime will open a pilot brewery that will become SABMillers European center for innovation and new product development.

“SABMiller shares our passion for putting great beer first, and making, selling and marketing it responsibly to beer aficionados worldwide,” said Meantime Chief Executive Nick Miller. “We are all excited about the opportunity to continue growing Meantime. We are also thrilled and flattered that SABMiller has given us a remit to innovate. This is a massive compliment and acknowledges our position as pioneers in modern craft beer.”

The acquisition would complement SABMillers lineup of imported premium lagers such as Peroni Nastro Azzurro and Pilsner Urquell. The company is also behind global brands such as Miller Genuine Draft and Grolsch, as well as local brands like Miller Lite in the US, Victoria Bitter in Australia, and others.

Meantimes portfolio includes, among others, its leading brand London Pale Ale, London Lager, Yakima Red, Pilsner, India Pale Ale and London Porter, with the first two accounting for around 70% of total sales. It offers a total of 10 bottled beers in its core range, six of which are also packaged on draught.

Mr Hook said, cited by the Financial Times, that the partnership with SABMiller would enable him to realize his vision for British beer to one day become world-leading. “I wanted to see London brewed beers given an opportunity to take the world stage – by combining a respect for our great brewing history with an approach that embraces modern technology and production,” he added.

SABMiller Plc traded 0.81% higher at GBX 3 629 per share at 09:01 GMT in London, marking a one-year increase of 12.95%. The FTSE 100 brewer is valued at 58.08 billion pounds.