SABMiller
From Wikipedia, the free encyclopedia
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| Type | Public (LSE: SAB, JSE: SAB) |
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| Founded | 1895 Johannesburg, RSA |
| Headquarters | London, England, UK |
| Key people | J. Meyer Kahn Chairman Graham Mackay, CEO |
| Industry | Brewing |
| Revenue | US$21,410 million (2008) |
| Operating income | US$3,448 million (2008) |
| Net income | US$2,288 million (2008) |
| Employees | 69,116 (2008) |
| Website | www.sabmiller.com |
| SABMiller | |||||||||||||
| Location | London, England, UK | ||||||||||||
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| Year opened | 1895 | ||||||||||||
| Annual production | 239 million hectolitres | ||||||||||||
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SABMiller plc (LSE: SAB) is one of the world's largest brewers; the company has brewing interests and distribution agreements on six continents. Six of the company’s brands are in the world’s top fifty beer brands, and the group is one of the largest bottlers of Coca-Cola products in the world. The group reported annual revenue of $21,410m in 2008, up 15% from $18,620m in 2007.
SABMiller has expanded rapidly from its South African origins, adding Miller to its name through acquisition of the Milwaukee, U.S.A. brewer in 2002, following SAB's pattern of acquiring local brands and brewing operations in Europe, Asia, and the Americas.
It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.
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[edit] History
The Company was founded in South Africa in 1895 as South African Breweries (SAB). The business operations were mainly limited to southern Africa, where it had established a dominant position in the market, until 1990 when it began investing in Europe.[1]
SAB’s first investment in Europe was in 1990 through the purchase of an interest in Compañía Cervecera de Canarias SA in the Canary Islands.
After listing on the London Stock Exchange in 1999[1] to raise capital for acquisitions, the group purchased the Miller Brewing Company in North America from the Altria Group in 2002, and changed its name to SABMiller.[2] Altria Group retains a 28.7% ownership interest in SABMiller.
Following this, the group’s next major acquisition was of a major interest in Bavaria S.A., South America’s second largest brewer and owner of the Aguila and Club Colombia brands in 2005.[3]
In the same year, SABMiller acquired a 29.6% stake in Harbin Brewery, China’s oldest brewer, preparing the group to benefit from growth of the beer category in developing markets.[4]
[edit] Operations
SABMiller has grown from its original South African base into a global company with operations in both developed markets and in emerging economies such as Eastern Europe, China and India.
[edit] South Africa
The group’s most established market to date, sales in South Africa contributed 27% to group EBITA in 2008.
Local subsidiary SAB Ltd’s soft drink division is also the country’s largest producer of products for the Coca-Cola Company.
Brands include: Castle Lager, Grolsch, Castle Milk Stout, Hansa Marzen Gold, Hansa Pilsener, Carling Black Label, Castle Lite, Sterling Lite Lager, Redd’s, Brutal Fruit and Sarita.
[edit] Africa and Asia
SABMiller’s brewing operations in Africa span 31 countries.
In China, the group’s national brand in that country, Snow, is produced in partnership with China Resources Enterprise Limited, is the leading brand by volume in China.
SABMiller is the second-largest brewer in India and has joint ventures in Vietnam and Australia. SABMiller acquired the Foster's brand for the Indian and Vietnamese markets.
The region contributed 14% of the overall group’s earnings before interest, tax and amortisation (EBITDA) in 2008.
Brands include: 2M, Castle Lager, Castle Milk Stout, Eagle, Fosters, Kilimanjaro, Snow and Zorok.
[edit] Europe
SABMiller’s entry into the European market began in 1995 with the acquisition of Dreher in Hungary. The group’s European operations are mostly centred in the fast developing consumer markets in Central and Eastern Europe (Hungary, Romania, Poland, Czech Republic and Russia), although there are operations in Italy, France, UK and Germany where it imports its international brands.
On 19 November 2007, the board of Royal Grolsch NV accepted a €816 million offer for the company by SABMiller. The takeover was completed with the delisting of Grolsch's shares on 20 March 2008.
The region contributed 23% of the overall group’s earnings before interest, tax and amortisation (EBITDA) in 2008.
Brands include: Pilsner Urquell, Nastro Azzurro, Peroni, Tyskie, Ursus, Dreher, Grolsch and Lech.
[edit] Latin America
SABMiller first entered the Latin American Market with the acquisition of Cerveceria Hondureña in Honduras, making the company the first international brewer to enter Central America. Since then, the group has expanded its Latin American operations into six countries, including Colombia, El Salvador, Ecuador, Panama and Peru.
The region contributed 25% of the overall group’s earnings before interest, tax and amortisation (EBITDA) in 2008.
Lager brands include: Aguila, Club Colombia, Costeña, Poker (Colombia), Pilsen Callao, Pilsen Trujillo, Cusqueña (Peru), Pilsener (Ecuador), Pilsener (El Salvador), Golden Light, Port Royal, Salva Vida, Imperial (Honduras), Atlas (Panama) and Balboa (Panama).
[edit] North America
The USA is the world’s most profitable beer market; On October 9, 2007, SABMiller and Molson Coors Brewing Company announced a joint venture to be known as MillerCoors.
U.S. antitrust regulators approved the joint venture on June 5, 2008. The merger was completed on June 30, 2008 and MillerCoors began operation as a combined entity on July 1, 2008. The combined venture will be headquartered in Chicago, IL.
Pete Coors has been named as chairman of the new company, and Molson Coors Chief Executive Leo Kiely will be the new CEO of the joint venture. Tom Long, CEO of Miller, will be appointed president and chief commercial officer.
The region contributed 11% of the overall group’s earnings before interest, tax and amortization (EBITDA) in 2008.
Brands include: Miller Lite, Miller Genuine Draft, Olde English 800, Milwaukee’s Best, and Miller Chill.
[edit] Environmental record
SABMiller runs a number of sustainable development initiatives across its companies and in the countries it operates in.[citation needed]
SABMiller along with other UK brewers, have introduced new lightweight bottles that use 30% less glass. The lightweight bottles are designed to not only reduce the amount of waste materials but also cut down on energy used in production and distribution reducing the company's carbon emissions.[5]
Along with their own sustainability reports 2008 Sustainable Development Report SABMiller submits to a number of third party annual reports that review the company's environmental record. The corporation provides links to such reports on their own website.[6]
[edit] Brands
[edit] Beer Brands
Main article: SABMiller brands
SABMiller's brands include international beers such as Pilsner Urquell, Peroni Nastro Azzurro and Miller Genuine Draft, as well as a range of market-leading local brands. Top brands brewed by SABMiller include:
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[edit] Non-beer brands
SABMiller is one of the world’s largest Coca-Cola bottlers and has carbonated soft drinks bottling operations in 14 markets. Brands produced include:
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[edit] References
- ^ a b SAB Miller History
- ^ SAB is set to buy Miller Brewing
- ^ SAB Miller buys a controlling stake in South America's Baveria SA
- ^ China: Bid for Brewer
- ^ "Product life cycle: Solutions out of the box" "Climate Change Corp" May 7, 2008. Accessed May 12, 2008
- ^ "SABMiller.com" Accessed May 12, 2008
