Namibia Breweries Ltd. (NBS.WH) said Thursday it has granted a unit of U.K. drinks company Diageo PLC (DEO) the right to brew and distribute Windhoek Lager and Windhoek Light in most markets globally.

The agreement, which is for an initial 10 years, creates a new royalty stream and will see the launch of the beers into new international markets, the Windhoek-based company said.

The licensing agreement excludes certain African markets, including South Africa and Namibia, and Namibia Breweries said that in certain southern African countries the two companies would combine their distribution networks with Diageo initially taking control of the combined product portfolios.

Namibian Breweries produces a range of beers, liqueurs, soft drinks and juices.

Company Web site: www.namibiabreweries.com

-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; robb.stewart@dowjones.com