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Case Title:
SABMiller’s Inorganic Growth Strategies
Publication Year : 2004
Authors: Siva Rama Krishna, T Phani Madhav
Industry: Beverages
Region:Global
Case Code: GRS0023
Teaching Note: Not Available
Structured Assignment: Not Available
Abstract:
In the early 21st century, the beer industry experienced aggressive consolidation due to a series of mergers and acquisitions between the big breweries. To strengthen its position in the fast consolidating industry, South African Breweries (SAB) acquired Miller brewing company, thereby forming the world's second largest beer company- SABMiller. Instead of establishing its own brands, SAB had a history of acquiring companies and transforming them according to its own model. With the formation of SABMiller, the competition in the US heated up between itself and Anheuser-Busch, which controlled more than half of the US beer market. The battle intensified when Anheuser-Busch entered the Chinese market, where SABMiller already had a presence.
Pedagogical Objectives:
- To discuss the growth strategies of SABMiller and how the company consolidated the acquired companies to attain leadership position in most of the markets that it entered
- To discuss the entry of SABMiller into China, the second biggest market after the US, and its competitive strategies vis-à-vis Anheuser-Busch.
Keywords : SABMiller; South African Breweries; Anheuser-Busch; Interbrew; Harbin; Growth Strategies Case Study; Competition in China's beer industry; Mergers and acquisitions; Heineken; Pilsner Urquell; Consolidation in beer industry; Miller Lite; Budweiser
Contents :
The South African Breweries Limited
South African Breweries Plc.
SABMiller Plc
SABMiller’s Diverse Portfolio
Sabmiller’s Global Operations
SABMiller Owned Brands
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