Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 15 pages
Data source: Published sources
Abstract
In the early 21st century, the beer industry experienced aggressive consolidation, triggering 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. SAB had the history of buying companies and shaping them rather than establishing its own brands. 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. The case details the growth strategies of SABMiller and offers scope for discussing how the company consolidated the acquired companies to attain leadership position in most of the markets that it entered. The entry of SABMiller into China, the second biggest market after the US and its competition with Anheuser-Busch in that country is also detailed.
About
Abstract
In the early 21st century, the beer industry experienced aggressive consolidation, triggering 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. SAB had the history of buying companies and shaping them rather than establishing its own brands. 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. The case details the growth strategies of SABMiller and offers scope for discussing how the company consolidated the acquired companies to attain leadership position in most of the markets that it entered. The entry of SABMiller into China, the second biggest market after the US and its competition with Anheuser-Busch in that country is also detailed.