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Strategic Analysis of Sabmiller

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Chapter 1

1. Introduction to South African Breweries (SABMiller plc)

1.1 History

1. Early history

2. Diversified into Bottles, Lodging, and Mineral Water in Early 20th Century

3. Takeover of Ohlsson's and United Breweries in 1956

4. Reincorporated in South Africa in 1970

5. Government Restrictions Leading to More Diversification: 1980s and Early 1990s

6. International Expansion in the Post-Apartheid Era

7. Moving into the Developed World As SABMiller, Early 2000s

2.

CHAPTER 1

1. Introduction to South African Breweries (SABMiller plc)

SABMiller plc ranks as the world's second largest brewer in terms of volume, trailing only Anheuser-Busch Companies, Inc. Although now based in London, the company owns no breweries in the United Kingdom. Its true home country is South Africa, where The South African Breweries Limited (SAB) was founded in 1895 and where SABMiller today holds an impressive 98 percent share of the beer market. The firm operates seven breweries in South Africa, where it sells 14 brands of beer, including local lager, Castle (the best-selling beer in Africa), SABMiller import brands Pilsner Urquell and Miller Genuine Draft, and one foreign brand brewed under license - Amstel. The company also maintains a major presence in the South African soft drink market through a 74 percent interest in Amalgamated Beverage Industries Ltd., the country's largest bottler and distributor of the Coca-Cola line of products, and full ownership of Appletiser South Africa (Pty.) Ltd., a producer of nonalcoholic sparkling fruit juices. In addition, SABMiller owns a 30 percent stake in Distell Group Ltd., the leading distributor of wines and spirits in South Africa, and 49 percent of Tsogo Sun Holdings (Pty.) Ltd., an operator of hotels and casinos in southern Africa.

South African Breweries embarked on an aggressive program of overseas expansion in the post-apartheid era, initially

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