| Type | Public limited company |
|---|---|
| Traded as | LSE: SAB JSE: SAB |
| Industry | Brewing |
| Founded | 2002 (London)[1] |
| Headquarters | London, United Kingdom |
| Key people | J. Meyer Kahn (Chairman) Graham Mackay (CEO) |
| Revenue | US$ 18.02 Billion (2010)[2] |
| Operating income | US$ 2.62 Billion (2010)[2] |
| Net income | US$ 2.08 Billion (2010)[2] |
| Employees | 70,000 (2009)[3] |
| Website | www.sabmiller.com |
SABMiller plc (LSE: SAB, JSE: SAB) is a global brewing and bottling company headquartered in London, United Kingdom. It is the world's second-largest brewing company measured by revenues (after Anheuser-Busch InBev) and is also a major bottler of Coca-Cola.[3][4] Its brands include Grolsch, Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell.[3] It has operations in 75 countries across Africa, Asia, Australasia, Europe, North America and South America and sells around 21 billion litres of lager per year.[3]
SABMiller has its 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, making it the 11th-largest company on the London Stock Exchange.[5] It has a secondary listing on the Johannesburg Stock Exchange.
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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.[6]
After listing on the London Stock Exchange in 1999[6] 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.[6]
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.[6]
The company became engaged in the hostile takeover of Fosters in August 2011,[7] and in September 2011 the board of Foster's agreed to a takeover bid valuing the company at Aus$9.9bn (US$10.2bn; £6.5bn).[8] The deal is expected to be completed by the end of 2011, but to exclude the Foster's lager brand in the UK and Europe, where it is owned by Heineken.[9]
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".[10]
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.
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.
Brands include: Castle Lager, Grolsch, Castle Milk Stout, Hansa Marzen Gold, Hansa Pilsener, Carling Black Label, Castle Lite, Redd’s, Skelters, Brutal Fruit, Blakes & Doyle and Sarita.
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 markets in 2006.
Brands include: N'gola, 2M, Castle Lager, Castle Milk Stout, Eagle, Fosters, Kilimanjaro, Haywards 5000, Royal Challenge, Knock out, Indus Pride, Snow and Zorok.
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.
Brands include: Pilsner Urquell, Velkopopovický Kozel, Radegast Nastro Azzurro, Peroni, Tyskie, Topvar, Ursus, Dreher, Grolsch and Lech.
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, 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.
Brands include: Miller Lite, Miller Genuine Draft, Olde English 800, Milwaukee’s Best, Miller Chill, and Leinenkugel.
In September 2011, the board of Foster's Group agreed to a takeover bid by SABMiller, valuing the company at Aus$9.9bn (US$10.2bn; £6.5bn).[8]
Brands include: Carlton Draught, Cascade Draught (see Cascade Brewery), Foster's Lager, Melbourne Bitter, Pure Blonde, and Victoria Bitter.
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.[11] 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.[12]
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.[13]
Graham Mackay is the chief executive of SABMiller. His 2009 salary for this role is £1.1 million increasing 4.1% to £1.145 million in 2010.[14] John Davidson joined the group as General Counsel and Group Company Secretary in 2006, having previously worked at international law firm, Lovells.
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