The filing to the stock exchange also stated in order to Millers to successfully acquire the business it has obtained all necessary licenses from the Excise Commissioner at the Excise Department.
McCallum Breweries, the manufacturers of niche market beers, 3 Coins Irish Dark and Riva will now be owned by Cargills via its subsidiary Millers Brewery.
According to market analysts, the entry of Cargills into the beer market makes sense as the company already has the distribution channel through its super market chain, 'Cargills Food City'.
As they pointed out, the lack of a proper and a wider distribution network has always been the problem for McCallum in taking their beer to consumers.
In contrast, Cargills owns a super market chain which has close to 200 stores island-wide, most of them having liquor counters within the premises.
Yet some are of the view that Cargills going into soft liquor could tarnish its corporate image as 'Cargills Food City' has become a household name in Sri Lanka.
It is also believed that McCallum Breweries has been in a web of debt since almost its inception as the company had sought financial assistance from several banks including People's Bank, DFCC Bank and Seylan Bank.
source - www.dailymirror.lk
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