Strategic Analysis of Sabmiller

16446 words 66 pages
Table of Content

Chapter 1

1. Introduction to South African Breweries (SABMiller plc)

1.1 History

1. Early history

2. Diversified into Bottles, Lodging, and Mineral Water in Early 20th Century

3. Takeover of Ohlsson's and United Breweries in 1956

4. Reincorporated in South Africa in 1970

5. Government Restrictions Leading to More Diversification: 1980s and Early 1990s

6. International Expansion in the Post-Apartheid Era

7. Moving into the Developed World As SABMiller, Early 2000s



1. Introduction to South African Breweries (SABMiller plc)

SABMiller plc ranks as the world's second largest brewer in terms of volume, trailing only Anheuser-Busch Companies, Inc. Although now based
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Through these listings SAB had greater access to additional investor capital.

On October 11, 1899, a war broke out between British colonial forces and Dutch and Huguenot settlers known as Boers. The war drove residents of Johannesburg out of the city and forced the Castle Brewery to close for almost a year. When British troops recovered the area, the brewery had sustained little or no damage. British authorities regarded the plant as an essential industry and encouraged the company to resume production in August 1900. Disrupted supply lines caused shortages of yeast and other raw materials, but within a year production had returned to full capacity.

The Boer War ended in 1902 but was followed by a severe economic depression. The brewing industry was not as adversely affected as others, however, and SAB was able to continue its expansion across southern Africa. The company acquired the Durban Breweries and Distillers company, and established a new plant at Bloemfontein. SAB purchased Morgan's Brewery in Port Elizabeth in 1906 and, five years later, acquired another brewery in Salisbury, Rhodesia (now Harare, Zimbabwe). At its northernmost point, SAB established a brewery at Ndola, northern Rhodesia (now Zambia).

W.H. Hackblock died in 1907 and was succeeded as chairman by Sydney Chambers. In 1912 Chambers led the


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