Sapporo signs production agreement
Japan to provide contract production for Sapporo's products in the
United States, beginning in December 2002.
Sleeman Breweries has signed an agreement with Sapporo Breweries of Japan to provide contract production for Sapporo's products in the United States, beginning in December 2002.
The United States is Sapporo's largest export market, representing approximately 2 million cases in annual sales volume. Sapporo has been the top selling Japanese beer in that market for 17 years.
Sleeman joins Sapporo's other international contract brewing partners, namely Guinness for Ireland and Dafuhao for China.
"The Sapporo brand is recognised around the world, and its reputation for quality is consistent with our own brewing values," said John Sleeman, chairman & CEO. "This agreement helps to enhance our presence in the global brewing industry," he added. "Development of strategic partnerships will continue to be a key ingredient of our growth strategy".
Under the terms of the agreement, Sleeman will produce selected Sapporo can and bottle packages for the US market over a five year term ending in December 2007. The agreement will contribute in excess of $2.5 million (€2.55m) in EBITDA annually to Sleeman over the contract term.
Sleeman stated that the transaction will have a negligible impact on 2002 earnings as production will begin late this year. Further opportunities, including additional packaging types, will be considered through 2003.
Sleeman Breweries is the leading brewer and distributor of premium beer in Canada and the third largest brewing company nationwide.
