BrandFinance® Brandirectory

SABMiller

SABMiller is the world's second largest brewer of beers and also one of the largest bottlers of Coca-Cola products in the world. We have worked with SABMiller on a number of projects following the merger between SAB plc and The Miller Brewing Company in 2002.

Following the merger, the Miller brands were capitalised on the SABMiller balance sheet and we were commissioned to determine the value of the brand portfolio for financial reporting purposes in accordance with US accounting standards (FAS 141). We provided an expert opinion on the value of the Miller portfolio of trademarks and recipes, and developed a valuation model which allowed SABMiller to conduct annual impairment reviews of these intangible assets.

Subsequent to valuing the Miller Brewing Company’s portfolio of brands, we advised SABMiller on a number of tax matters, including:

• Recommendations to the Transfer Pricing Committee regarding an appropriate royalty rate range for a premium international beer brand.

• Commercial advice relating to the renegotiation of an in-licensing agreement, including setting the royalty rate and other terms and conditions of the license.

• Advice on a systematic approach to setting internal royalties for global brands. The study also developed an approach for determining an appropriate point within the range for any brand in any market, which also took account of the strength of the brand and trading conditions.