Miller Brewing, the US-based unit of Philip Morris, and Dutch brewer Grolsch have signed a long-term agreement whereby Grolsch will brew and bottle Miller Genuine Draft (MGD) in a number of continental European markets.

"The basis of the alliance with Grolsch from our perspective is Grolsch's reputation as a high-quality brewer combined with the company's sales strength in two important growth markets for Miller, the Netherlands and France," said Brian Wells, Miller Brewing International's regional vice-president for Europe.

No financial details of the deal were disclosed but in a statement Miller Brewing said: "The license contract covering the marketing, sales and distribution of MGD in the Netherlands and France will enable the Grolsch organisation in those markets to offer a more extensive range to the trade and to consumers."

Commenting on the deal, a spokesperson for Grolsch said: "Grolsch has adopted a long-term strategy of seeking alliances to expand its distribution and optimise the company's efficiency. The agreement with Miller will help us achieve these twin objectives."

Under the terms of the multi-year contract, MGD will be distributed in bottles and cans and the beer will be brewed and packaged at Grolsch's breweries in Enschede and Groenlo.