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South African Breweries
There are a few important trends in the international brewing industry. The first is consolidation (Fletcher, 2011). With slowing demand in major markets, many large brewers are seeking to do two things: improve their economies of scale and gain access to new markets. This has led to successive rounds of consolidation in the industry, with most of the world's largest brewing companies now global conglomerates of strong regional brands. For SAB, this has meant not only consolidating the firm's home territory of Africa, but exploring options outside the continent as well.
The second major trend in the international beer industry is that growth has shifted to emerging markets. In the major beer-drinking markets, consumption is either stagnant or shrinking, and this has led to a quest for growth elsewhere. Many emerging markets have large populations and as these markets become more attuned to beer drinking,...
China is a perfect example of this -- per capita consumption is low but there is growth and a large population.
SAB has generally performed well in the internationalization of the brewing business. With a listing on the London Stock Exchange it is able to raise capital, and this has given it the ability to pursue opportunities around the world. SAB has properties on most continents and in most major markets. As a result, the company has been able to transcend the South African market to become a major player in the international brewing industry. It has also been able to match the moves of competitors, for example in acquiring Pilsner Urquell to give the company a premium brand. Being a fairly early mover in China was also a major step in the successful internationalization of South African Breweries.
4. SAB has…
References:
China Daily. (2002). SAB aims to be biggest beer maker. China Daily. Retrieved November 13, 2011 from http://www.china.org.cn/english/investment/27117.htm
Fletcher, C. (2011). SABMiller Chief Mackay forsees more consolidation in global beer industry. Bloomberg. Retrieved November 13, 2011 from http://www.bloomberg.com/news/2011-03-29/sabmiller-chief-mackay-foresees-more-consolidation-in-global-beer-industry.html
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