Allied Domecq and Miller Brewing Form Commercial Partnership to Launch Range of Alternative Malt Beverages.

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 18, 2002

New Ready-to-Drink (RTD) Malt Products Extend Leading

Brands Into Fast-Growing Alternative Malt Beverage Market

Allied Domecq PLC (LSE: ALLD.L) and Milwaukee-based Miller Brewing Company today announced a commercial partnership to introduce a range of new alternative malt beverages, the first two of which will be based on Allied Domecq's popular Stolichnaya vodka and Sauza tequila.

These new drinks will reach US adult consumers this spring through over 500,000 retail outlets serviced by Miller's nationwide distributor network. As the market develops, both parties will explore further opportunities utilizing the Allied Domecq portfolio of core spirits brands.

Philip Bowman, Allied Domecq's Chief Executive, said, "We will be the only player with a strong, premium brand presence across multiple categories of ready-to-drink malt beverages that legal-drinking-age consumers are demanding, thereby accelerating the fastest-growing segment of the industry. By leveraging Miller's production capabilities, its broad distribution system and strong sales and marketing organization, and capitalizing on the strong brand equity of our products -- beginning with Stolichnaya and Sauza - we are moving into this category in an innovative way." He added, "We intend to be a major player and we're confident our intent to establish leadership in this category will be met with enthusiasm and success. Our beverages will be a hit with adult consumers."

Miller's CEO, John Bowlin, said, "Allied's premium portfolio of brands represents a strong opportunity to provide our distributors and retailers a tremendous range of new tastes and choices to offer to consumers. I look forward to adding the Allied Domecq branded products to our portfolio in the company of leading brands Miller Lite, Miller High Life and Miller Genuine Draft."

Mr. Bowlin added, "Miller's distributors will have the benefit of developing and winning in the category with great brands that promise to create broad, established adult consumer appeal."

The new Stolichnaya and Sauza ready-to-drink malt beverage products will be produced and distributed by Miller in the US and available to consumers in late spring. The companies will initially invest up to $50 million in development, launch activity and marketing of these trademarks.