|Type||Public limited company|
|Traded as||LSE: SAB, JSE: SAB|
|Headquarters||London, United Kingdom|
|Key people||Alan Clark (CEO)|
|Revenue||US$ 23.213 billion (2013)2|
|Operating income||US$ 4.203 billion (2013)2|
|Net income||US$ 3.511 billion (2013)2|
Miller Brewing Company
South African Breweries
SABMiller plc (LSE: SAB, JSE: SAB) is a multinational brewing and beverage company headquartered in London, United Kingdom. It is the world's second-largest brewer measured by revenues (after Anheuser-Busch InBev) and is also a major bottler of Coca-Cola.45 Its brands include Fosters, Grolsch, Miller Brewing Company, Peroni Nastro Azzurro and Pilsner Urquell.4 It has operations in 75 countries across Africa, Asia, Australia, Europe, North America and South America and sells around 21 billion litres of lager per year.4
SABMiller's origins date back to the foundation of South African Breweries in 1895 as to serve a growing market of miners and prospectors in and around Johannesburg, South Africa. Two years later, it became the first industrial company to list on the Johannesburg Stock Exchange and the year after (1898) it listed on the London Stock Exchange. From the early 1990s onwards, the company increasingly expanded internationally, making several acquisitions in both emerging and developed markets. In 1999, it formed a new UK-based holding company, SAB plc, and moved its primary listing to London. In May 2002, SAB plc acquired Miller Brewing, forming SABMiller plc.
SABMiller has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. It had a market capitalisation of approximately £35.6 billion as of 23 December 2011, the 11th-largest of any company with a primary listing on the London Stock Exchange.6 It has a secondary listing on the Johannesburg Stock Exchange.
The origins of the company date back to the foundation of South African Breweries in 1895 in South Africa. For many decades the operations of South African Breweries were mainly limited to southern Africa, where it had established a dominant position in the market, until 1990 when it began investing in Europe.7
After listing on the London Stock Exchange in 19997 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.7
The company became engaged in the hostile takeover of Fosters in August 2011,8 and in September 2011 the board of Foster's agreed to a takeover bid valuing the company at A$9.9bn (US$10.2bn; £6.5bn).9 The deal was completed by the end of 2011, but excluded the Foster's lager brand in the UK and Europe, where it is owned by Heineken.10
In November 2011, SABMiller launched Impala Cervejas in Africa, the first commercially produced cassava beer, although Africans have been making cassava home brews for generations. The taste is described as "somewhat bitter, somewhat tangy, not sweet".11
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. It is one of the world’s largest brewers, with brewing interests and distribution agreements across six continents. Its worldwide portfolio of brands includes premium international beers such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch along with leading local brands such as Aguila, Castle, Miller Lite, Snow, and Tyskie.
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’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, Spain 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.
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.
Lager brands include: Isenbeck (Argentina), Aguila, Club Colombia, Costeña, Poker, Pilsen (Colombia), Cristal, Pilsen Callao, Pilsen Trujillo, Cusqueña, Arequipeña (Peru), Pilsener, Club (Ecuador), Pilsener, Regia, Suprema, Golden Light (El Salvador), Port Royal, Salva Vida, Imperial (Honduras), Atlas (Panama) and Balboa (Panama).
On 9 October 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 5 June 2008. The merger was completed on 30 June 2008 and MillerCoors began operation as a combined entity on 1 July 2008. The combined venture will be headquartered in Chicago, Illinois. 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. They have recently opened a permanent office in Toronto, Montreal and Vancouver Canada.
This is the group’s most established market to date. Local subsidiary SAB Ltd’s soft drink division is also the country’s largest producer of products for the Coca-Cola Company.
SABMiller's brands include famous international beers. Four of them are classified by the company as "global beers", the flagships of SAB Miller:
SAB Miller also owns over 150 market-leading local brands. The company is one of the world’s largest Coca-Cola bottlers and has carbonated soft drinks bottling operations in 14 markets.
SABMiller runs a number of sustainable development initiatives across its companies and in the countries in which it operates. They use 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.12 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.13
In November 2010 the charity ActionAid published a report alleging that SABMiller has avoided paying a total of around £20 million of corporation tax in five African countries – Ghana, Mozambique, Tanzania, South Africa and Zambia – and India. SABMiller has denied these allegations.14
Alan Clark (CEO) John Davidson joined the group as General Counsel and Group Company Secretary in 2006, having previously worked at international law firm, Lovells. Top senior executives include: Norman Adami (Chairman and Managing Director of SAB Ltd), Karl Lippert (President, SABMiller Latin America), Mark Bowman (Managing Director, SABMiller Africa), Ari Mervis (Managing Director, SABMiller Asia), Nick Fell (Marketing Director), and Tony Van Kralingen (Director - Human Resources and Supply Chain).15
The current members of the SABMiller Board of Directors are:16
- Alan Clark, Chief Executive Officer
- Jamie Wilson, Chief Financial Officer
- John Manser, Deputy Chairman and Senior Independent Director
- Mark Armour
- Geoffrey Bible
- Dinyar Devitre
- Lesley Knox
- John Manzoni
- Miles Morland
- Dambisa Moyo
- Carlos Alejandro Pérez
- Cyril Ramaphosa
- Alejandro Santo Domingo
- Helen Weir
- Howard Willard
- Martin, Andrew (10 October 2007). "Merger for SABMiller and Molson Coors". The New York Times. Retrieved 22 September 2011.
- "Preliminary Results 2013". SABMiller. Retrieved 14 March 2014.
- "Who we are". SABMiller. Retrieved 14 March 2014.
- "Company Snapshot 2010". SABMiller plc. Retrieved 30 August 2010.
- "SABMiller, Asahi eye Foster's beer unit: sources". Reuters. 23 August 2010. Retrieved 30 August 2010.
- "FTSE All-Share Index Ranking". stockchallenge.co.uk. Retrieved 26 December 2011.
- SABMiller: Heritage
- Werdigier, Julia (2 September 2011). "SABMiller's Takeover of Foster's Gets More Hostile". The New York Times.
- "SABMiller agrees Foster's takeover deal". BBC News. 21 September 2011. Retrieved 21 September 2011.
- "SABMiller agrees Foster's takeover deal". BBC News. 21 September 2011.
- "SABMiller Launches 'Entry-Level' Cassava Beer". Retrieved 2 November 2011.
- "Product life cycle: Solutions out of the box" "Climate Change Corp" 7 May 2008. Retrieved 12 May 2008
- "SABMiller.com". Retrieved 12 May 2008 Archived 14 April 2008 at the Wayback Machine
- Lawrence, Felicity (29 November 2010). "Brewer accused of depriving poor countries of millions in revenue". The Guardian (UK). Retrieved 29 November 2010.
- "Google Finanace". Lon: SAB. Retrieved 30 January 2012.
- "Board". SABmiller plc. 2012. Retrieved 1 November 2012.
- Official website
- Yahoo! – SABMiller plc Company Profile
- SABMiller loses its cheer for PIC's Molefe
- SABMiller unfazed by dual role of chief
- SABMiller-related boards still a small closed world