BEAMISH & Crawford has signed an agreement with the American brewing giant, Miller, to represent the company's brands in the Republic.

Miller, which claims to be the world's third largest brewer, previously operated an agreement with the Clonmel based drinks company, Showerings.

Beamish & Crawford managing director, Mr Alf Smiddy, said the new agreement, which comes into force from the beginning of next month, marks the beginning of a new phase for the Cork brewery. "We are now in the business of developing major relationships with international players," he added.

Miller's main product in the Republic, Miller Genuine Draught, has a 10 per cent share in the premium bottled lager market with estimated sales of £18 million per year.

At present Miller beer is imported from the United States, and it is thought that Beamish & Crawford's ability as a brewer may have been a key factor in the switch.

Unlike Showerings, which is a very experienced cider producer, Beamish & Crawford could brew Miller under licence in Ireland if required. Asked if this was a likely outcome of the deal, Mr Smiddy replied: "We've just signed the agreement, there are lots of things we are going to look at".

Meanwhile, Tennents Ireland and Beamish & Crawford have ended a six year trading agreement whereby Tennents distributed Beamish brands in the northern part of the Republic and Beamish reciprocated in the south.

The decision to end the agreement was made because the companies now represent a number of beer products which are in direct competition.