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SABMiller QUESTION 1 Identify the corporate logics that SABMiller have adopted over the course of the case Company Perspectives: The South African Breweries Limited
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billion (?147.7 billion) in 2006. InBev is the largest beer producing company, followed by SABMiller which became the second largest brewing company when South African
due to the maturity of the products within it, and over 80% of the market is comprised of AB, SABMiller and Coors which have dominated the market for years. This
Submitted by venkat01 on May 27, 2008
Category: Business
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QUESTION 1
Identify the corporate logics that SABMiller have adopted over the course of the case
Company Perspectives:
The South African Breweries Limited is a holding company invested in and taking management responsibility for a portfolio of businesses, principally engaged in meeting mass market consumer needs. Beer is the major profit contributor, but an important balance is provided by interests in complementary beverages, retailing, hotels, and the manufacture and supply of selected consumer goods and services, together with strategic investments in businesses which support the mainstream interests.
Company History:
The South African Breweries Limited (SAB) is a holding company whose principal line of business is brewing. The company holds an impressive 98 percent share of the beer market in its home country of South Africa, where it sells 14 brands of beer, including local lagers Castle and Lion as well as foreign brands brewed under license--Heineken, Guinness, Amstel, and Carling Black Label. Aggressive overseas expansion following the end of apartheid, however, has also given SAB ownership of, or stakes in, more than 25 breweries in the emerging markets of central Europe, China, and sub-Saharan Africa. Overall, in terms of volume, South African Breweries is the world's fourth largest brewer. SAB also has a variety of nonbrewing operations, such as carbonated and natural fruit drinks and other beverages, retailing, hotels and gaming, and manufacturing of safety matches and glass. The company has been divesting many of these noncore assets in the late 1990s. SAB's history is in many ways the history of the South African brewing industry, most notably through the government-ordered merger of the largest breweries in 1956. The company's history was also greatly influenced by the apartheid system and its effect on the domestic economy, on domestic firms, and on foreign investment in South Africa....
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