Canada & Mexico: Sleeman and Femsa to join forces in Canada

Sleeman Breweries Ltd. announced on September 16, a national sales, marketing and distribution agreement with FEMSA Cerveza of Mexico, for the Canadian market.

FEMSA Cerveza is a fully-owned subsidiary of FEMSA, the largest beverage company in Latin America. FEMSA brands to be sold in Canada under this agreement are their signature Sol brand in its distinctive clear bottle, and Dos Equis. The agreement will be effective January 1st, 2006. Sol is one of the fastest growing young adult brands in Mexico.

John Sleeman, Chairman & CEO of Sleeman Breweries said, "This is a great opportunity, and we look forward to working with this world renowned and respected global brewer. Through this strategic partnership, we can continue to leverage our national sales and distribution systems - an important component of Sleeman's growth strategy." The FEMSA brands also represent a unique compliment to the organization's already dynamic portfolio of premium domestic and international beers. "This is another example of partnering with unique brands that will work to strengthen our overall portfolio" added Mr. Sleeman.

FEMSA Director Luis Duran said, "We are very pleased to be working with Canada's leading premium brewer and look forward to executing our growth strategy with Sleeman for FEMSA brands in this market".

Sleeman Breweries Ltd. is the leading brewer and distributor of premium beer in Canada and the third largest brewing company nation-wide. The Company has supplemented its core Sleeman brands, which are available in every province, with a family of exceptional regional brands. These include Okanagan Spring and Shaftebury in British Columbia and Alberta, Upper Canada in Ontario, Unibroue and Seigneuriale in Quebec and Maritime Beer in Atlantic Canada. Sleeman entered the rapidly growing value price category in 1999 by acquiring the Stroh portfolio of brands in Canada. The company markets and/or distributes world-class imported products such as Guinness, Grolsch, Samuel Adams, Scottish & Newcastle (including Bulmers Strongbow English Cider), Sapporo and Pilsner Urquell, and provides contract production for Japan's Sapporo Breweries' products. The Company's products are also available in selected international markets. Please visit our website at www.sleeman.ca.

FEMSA is the largest beverage company in Latin America with a portfolio of leading beer and soft drink brands. It achieved revenues of US$ 8.4 billion in 2004. Its subsidiary FEMSA Cerveza is one of the leading brewers in Mexico with brands that include Sol, Tecate and Dos Equis. Its subsidiary Coca-Cola FEMSA is the largest Coca-Cola bottler in Latin America and the second largest in the world. FEMSA sells its products through approximately two million points of sale, which serve a population of over 170 million people in 9 countries, including some of the largest metropolitan areas in Latin America, such as Mexico City, Sao Paulo and Buenos Aires. FEMSA's manufacturing and distribution capabilities are enhanced by its retail and packaging operations; it operates Oxxo, the largest convenience store chain in Mexico, with over 3,600 stores as of June 2005. For more information on FEMSA, go to www.femsa.com.

E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .