Strategic Analysis of Sabmiller

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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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A joint subsidiary called Union Hop Growers spent many years developing new hybrids, which delayed the first commercial use of South African-grown hops until 1920.

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

After Frederick Mead died in August 1915, John Stroyan, who succeeded Sydney Chambers a few months earlier, became the most important figure in SAB management. Stroyan faced a serious challenge the following year when hostilities during World War I interrupted the supply of bottles to South Africa. SAB decided to establish its own bottle-making plants in 1917. Actual production, however, did not begin until 1919, the year the war ended.

Another economic depression beset South Africa after World War I, but steady growth in the demand for beer reduced many of the detrimental effects of the depression. SAB was financially strong enough in 1921 to purchase the Grand Hotel in Cape Town, an important addition to the company's lodging business. SAB gained an interest in the mineral water business in 1925, when it purchased a substantial interest in the Schweppes Company.

The Great Depression of the early 1930s had little effect on the South African brewing industry; SAB continued to expand its operations and improve its facilities. The company's biggest problems were shortages of labor and capital. The Spanish Civil War and rising political tensions in

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