Sab Miller

Background of SABMiller: * Founded in 1895 in South Africa as South African Breweries (SAB) * 1948-1994: bad effects from “apartheid” regime. The investments from and to South Africa were restricted. So SAB had to focus on dominating domestic market through acquisition of competitors and increasing the efficiency of production and distribution facilities. * By 1979, SAB hold 99% market share in South Africa and play the leading role in other markets in the region. * 1978 SAB acquired Sun City casino resort * In 1990s, SAB focus on expanding throughout Africa region. The changing in South Africa political system (the establishment of multiracial democracy in S.A.) made the progress easier * By 2000, SAB dominated the southern Africa, competition is lesser, but no room for expansion * In 1993, SAB acquired Dreher, Hungary’s largest brewery. This was the company first acquisition outside Africa. * In 1990s, SAB continued to expand to under-developed markets. In 1994, SAB formed a joint venture in China, China Resources Snow Breweries, and added China’s biggest beer brand, Snow, to its portfolio. After that were some acquisitions in Eastern Europe (Lech, Tyskie…) * By 2001, by focusing on emerging markets, SAB became the world’s fifth largest brewer by volume, with breweries in 24 countries across the globe. * In 1999, SAB listed on London Stock Exchange (LSE) * In 2002, SAB acquired a major brand in developed market: Miller Brewing Company, the 2nd largest in US. SAB then became SABMiller, the 2nd largest brewery by volume in the world. * In the first year operating SABMiller operating Miller, its US market share dropped from 19.6% to 18.7%. Miller’s product portfolio would be rationalization from 50 brands to 11 or 12. * In 2003, the company made its first significant acquisition in Western Europe when it acquired Italy’s BirraPeroni. * In 2005, SABMiller merged with GrupoEmpresarial Bavaria, the 2nd largest