Royal Unibrew further strengthens its position in the Caribbean

July 2, 2007 at 12:00 AM EDT
•	Royal Unibrew A/S acquires controlling interest in St. Vincent Brewery Ltd 
•	St. Vincent Brewery Ltd produces the Royal Unibrew Vitamalt brand on li-cence
•	Leading market position is achieved in the country within both malt drinks,
beer and soft drinks 
•	Enforces Royal Unibrew's position in the area
•	Enables synergies with previously acquired enterprises in Antigua and

In accordance with Royal Unibrew's strategic platform MACH II, in which the
malt drinks markets in the Caribbean and Africa constitute a focus area, Royal
Unibrew A/S has entered into an agreement to acquire 52% of the share capital
and votes of St. Vincent Brewery Ltd., af-ter which Royal Unibrew controls some
76% of the shares of the Company. The remaining shares are primarily owned by
local investors. 

The acquisition is a natural extension of the previous acquisition of brewery
and soft drinks activities in Antigua and Dominica (cf Announcement RU44/2006
of 13 December 2006). 

Background to the acquisition
The acquisition of the breweries in the Caribbean is an integrated part of the
Group's malt drinks strategy, which will strengthen the Group's position in the
region and contribute to the overall objectives of the MACH II strategic plan. 

Locally, the acquisition of St. Vincent Brewery will win Royal Unibrew the
leading position in the market thus strengthening the Group's overall position
in the region. Furthermore, the ac-cess to new, strong local brands and
attractive product portfolios provides an opportunity of increased
profitability through the expected synergies within purchasing, production,
sales, marketing, distribution and organisation. 

Accounting issues and expectations for the future
The acquisition price of the shares mentioned amounts to USD 9.3 million (DKK
51 million) with a total share value (100%) of USD 17.9 million (DKK 99
million). The Company is largely debt-free. 

In 2006 the brewery recorded a net revenue of some USD 15 million (DKK 84
million) and a profit before tax of USD 1.9 million (DKK 11 million). 

It is expected that the company will be included in the consolidated financial
statements of Royal Unibrew as of 1 July 2007. 

In 2007 revenue is expected to be at the 2006 level, whereas earnings are
expected to be lower than in 2006, primarily due to integration costs and the
introduction of VAT in H1 2007. Within 2008/2009 the activities are expected as
a minimum to meet Royal Unibrew's overall target of ROIC and EBIT margins of at
least 10% and free cash flow of at least 7% of net revenue.