• The Wall Street Journal, Monday, July 3, 2006 12 PM

Miller Brewing is increasing its presence in the growing energy beer market. The marketer is expected to announce today that it will acquire the Sparks and Steel Reserve brands from the McKenzie River Corp. for $215 million. Energy beers often include caffeine and caffeine-like substances, and have been surging in popularity. Sparks is a caffeinated alcohol malt beverage flavored with ginseng, guarana, and taurine, and has a citric taste. Steel Reserve is a lager beer. Such brands represent a small but growing part of the lackluster American beer market--and most of the industry's major players are getting more involved, creating a new market battle for dominance. The acquisition expands Miller's portfolio of energy beers. It already markets Mickey's Stinger, a malt liquor that features more caffeine than a cup of coffee, and two caffeine-like substances: guarana and taurine. Malt liquors generally have more alcohol than beer. Mickey's, for instance, has 7 percent alcohol by volume, compared with the 4.5 percent that is typical of most American beers. "Sparks and Steel Reserve will have an immediate positive impact on our growth profile," said Norman Adami, president and chief executive of Miller Brewing. Miller rival Anheuser-Busch Cos. offers two different beers--Tilt and B(e)--with caffeine, ginseng, and guarana. Anheuser is also test-marketing another caffeinated beer, Natty UP.

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