USA: SABMiller launches Peroni Campaign in New York

SABMiller plc, one of the world’s leading brewers, announced June 05 the New York launch of its new global brand campaign for its international premium beer Peroni Nastro Azzurro. Over the remainder of the year, SABMiller will invest in a range of advertising and marketing initiatives and target key accounts across New York City. The campaign for Peroni Nastro Azzurro will also be rolled out in San Francisco and Miami later this year.

As part of its positioning programme, Peroni Nastro Azzurro has signed a contract with IMG Sports & Entertainment to become the exclusive beer sponsor of Fashion Week events taking place in New York, Miami and Los Angeles. New York Fashion Week takes place in September 2006 with follow on events in February and September of 2007. Miami Fashion Week takes place in July 2006 and July 2007, and Los Angeles events occur in October 2006 and March and October of 2007.

The campaign launch follows a successful seeding programme in New York and positive results from test areas in the US, as well as high-profile launches in the UK and South Africa. Miller Brewing Company, a subsidiary of SABMiller plc, introduced a teaser of the new brand campaign for Peroni Nastro Azzurro during the Oscars. The campaign is based around an adaptation of Fellini’s 1960 masterpiece ‘La Dolce Vita’.

Chris Taylor, SABMiller International Brand Director for Peroni Nastro Azzurro, commented: “Peroni Nastro Azzurro represents Italian style and sophistication, attributes with which the New York consumer can easily identify. With critical acclaim at the Oscars launch, we firmly believe that Peroni Nastro Azzurro can perform well in New York import market. We are also excited about the upcoming sponsorship of Fashion Week which truly reflects the Peroni Nastro Azzurro values and continues our effort to push the boundaries of traditional beer marketing.”

Peroni Nastro Azzurro is part of SABMiller’s global premium brand portfolio which also includes Pilsner Urquell and Miller Genuine Draft.

Tom Cardella, Miller Brewing’s Senior Vice President - International Brands and Market Development, said: “With imported beers representing the fastest-growing segment of the U.S. beer industry, we are stepping up our marketing efforts on Peroni Nastro Azzurro with programs in line with its upscale positioning. Peroni’s style-infused marketing efforts, including our alliance with IMG’s Fashion Week events, will enable Peroni to take its place among other iconic Italian brands.”

Analysts at JP Morgan maintained June 06 their "overweight" rating on SABMiller plc, while reducing their estimates for the company. The target price is set to 1140p.

In a research note dated June 5 and published June 06, the analysts mention that the current risk/reward profile of SABMiller's stock is positive, following the 19% depreciation in the company's share price since late April. The decline in the company's share price is likely to have been overdone, the analysts say. The EPS estimates for 2007 and 2008 have been reduced from $1.30 to $1.25 and from $1.50 to $1.41, respectively, to reflect currency effects.

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