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CUB signs draught deal with Diageo

Melbourne, 26 March 2003

Carlton & United Breweries (CUB), the Australian brewing, leisure and spirits division of Foster's Group, today announced it has been appointed by Diageo Australia to exclusively produce and distribute Diageo's full range of draught beer and draught pre-mix spirits products in Australia.

Under the new 10 year arrangements, CUB will for the first time manage production and distribution of Diageo Australia's draught pre-mix spirits portfolio, which currently comprises the highly successful Bundaberg Rum and Cola and Johnnie Walker and Cola brands.

Simultaneously, Diageo has restructured its existing arrangements with CUB for the production and distribution of Guinness and Kilkenny.

Currently, Guinness (both Draught and Extra Stout) and Kilkenny Irish Ale Draught are produced, distributed and sold in Australia by CUB. CUB also manages the importation, distribution and sale of Guinness Draught in cans, Kilkenny Irish Ale in cans, and Harp Lager Draught.

Under the new arrangements which will be effective from 30 April 2003, CUB will continue to produce and distribute Guinness Draught and Kilkenny Irish Ale Draught. CUB will also import and distribute Harp Lager Draught and produce Guinness Extra Stout in bottles and cans.

Diageo Australia will assume responsibility for the marketing and promotion of all its draught products, as well as the importation and promotion of all packaged products (Guinness Draught in cans and bottles and Kilkenny Irish Ale in cans) and sale of Guinness Extra Stout in bottles and cans.

"We're thrilled to expand our long standing partnership with Diageo for another ten years and also to include draught pre-mix spirits," said CUB Managing Director, Mr Trevor O' Hoy.

"This agreement gives us the opportunity to supply the increasingly popular draught forms of two great pre-mix spirit brands nationally," Mr O'Hoy said.

Diageo Australia's Managing Director, Mr John Pollaers said, "The new structure will allow us to expand our draught capabilities and to build the new category of draught pre-mix spirits in the Australian market".