Scottish & Newcastle (S&N) is playing down speculation that it is planning a bid for US beer giant Miller, although it has confirmed that the two companies are hoping to strengthen their links by developing new joint ventures in Europe.
S&N already has the UK distribution rights to Miller Pilsner and Miller Genuine Draft, and also distributes Genuine Draft in Ireland. As part of its wider expansion plans, S&N is keen to take over distribution of Miller brands across other European countries. The recognition factor and authentic US credentials of the brand would give a significant boost to S&N's ambitions to be a bigger international player. Last year, it acquired France's biggest brewer, Kronenbourg.
While S&N's existing distribution arrangement in France and Holland with arch-rival Budweiser would rule it out of a deal with Miller in those countries, it is thought to be discussing a deal to distribute Miller in Italy, Spain and Germany.
Miller is the second biggest US brewer behind Anheuser-Busch. As well as the Miller portfolio, it brews a range of craft ales and has the US distribution rights to Fosters. It recently signed a deal to distribute Grolsch in Holland and France.
Miller was founded almost 150 years ago, and has been owned by Philip Morris since 1970. However, the US tobacco group is thought to be considering divesting itself of the Miller brewing and brands business to concentrate on core activities.
While S&N would be a likely bidder should Miller come onto the market, S&N spokesman Richard Gibb said there had been no discussions of an outright sale.
Commenting on speculation in the national press, Mr Gibb told thePublican.com: "It's no secret that we have close links with Miller and would like to extend that relationship. However, there is nothing else under discussion."