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Case 9-1

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Case 9-1: AB InBev

and SABMiller: A
Match Made in
(Beer) Heaven?
B Y: P R A J A K TA R A N J I T B H A I PA RV E

RUCHI SAPPLE

KARISHMA KHOJA

PA R N E E T G I L L
Agenda
• Introduction

•Case Summary

•W5

•Answering the questions

•Important lessons learned


The case covers South African Breweries
PLC's 2002 acquisition of Miller Brewing,
which resulted in the development of
SABMiller, the world as second-big brewer.
The new corporation was tasked with
INTRODUCTION revitalizing the Miller Lite brand in the United
States and establishing Miller as an upscale
company in Europe. SABMiller and its rivals
were also making significant investments in
China, the globe's largest beer market.
CASE SUMMARY
South African Breweries PLC had a dominant position in
the South African beer market, but its brands lacked global
recognition. In 2002, the company acquired the Miller
Brewing unit from Philip Morris for $3.6 billion, forming
SABMiller. This deal made SABMiller the world's second-
largest brewer, after Anheuser-Busch InBev.
SABMiller faced the challenge of revitalizing the Miller
Lite brand in the US, where it had been losing market share
for several years. The company aimed to launch Miller as a
premium brand in Europe. Furthermore, SABMiller and its
competitors were investing in China, the world's largest
beer market. This Photo by Unknown Author is licensed under CC BY-SA
WHAT WHEN WHY WHO
WHERE IN THE CASE
WHAT

WHEN

WHY

WHO

WHERE
1. Why are AB InBev, Heineken, and other global
brewers targeting emerging markets such as
Vietnam?

Growth High Barriers Brand


Diversification
Opportunities to Entry Recognition
2. Is the brewing industry local or
global?

LOCAL GLOBAL
3. Why do so many licensing deals, mergers, and
acquisitions occur in the brewing industry?

Consolidation Brand Portfolio


Important Lessons Learned

Strategic Mergers Innovation and Profitable Importance of Balancing Global


and Acquisitions Brand Expansion through Local Knowledge Scale and Local
for Global Brand Revitalization in Emerging Markets and Strategic Relevance in the
Presence Competitive Alliances in Brewing Industry
Industries Foreign Markets
THANK YOU

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