SABMiller takeover talk heats up

Industry analysts are speculating that there may be an AB InBev purchase of rival brewers SABMiller, shutting out rumoured moves by Diageo to make the acquisition.

miller

One of SABMiller’s flagship brands: Miller Genuine Draft

The possible takeover of London-based SABMiller by Belgium’s AB InBev has been rumoured for a while, but talk of a deal between industry insiders is picking up pace.

As reported in Columbus CEO, Tom Pirko, president of Bevmark, said: “I think that we’ve come to a break point, a decision point. I think that we’re close now.”

“The chatter has intensified,” said Harry Schuhmacher, publisher of Beer Business Daily.

A combination of the two companies would bring together eight of the 10 leading global beer brands: AB InBev’s Bud Light, Budweiser, Corona Extra, Skol, Stella Artois, and Brahma; and SABMiller’s Aguila and Miller Lite.

Combined, AB InBev and SABMiller would account for about $65 billion (£38bn) in sales and nearly 30% of global beer volume according to reports.

AB InBev

AB InBev already boast a strong range of global brands

The heated speculation comes as Diageo is rumoured to also be looking at SABMiller for a potential merger to tap into the company’s strong trading networks in developing economies.

This would be in line with Diageo’s recent takeover of United Spirits, aimed at opening up similar opportunities in India.

In 2010, Budweiser’s global sales volume rose 1.7% according to reports while SABMiller’s market position is strong in regions with high growth potential, including Africa and China.

SABMiller’s strength in Africa, China and other countries where brewers want to grow makes it an equally attractive combination for AB InBev, according to beer industry consultant David Williams.

“I think SABMiller is their number one target,” he said. “InBev wants to be the global, dominant player in beer, and this would help them do that.”

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

Sales Executive (London – Craft Spirits)

Bimber Distillery
London, UK

International Sales Manager

Crush Wines Ltd
Home based/Wiltshire office, UK

Head of Marketing

Amathus Drinks Plc
London, UK

Sales Representative - Private Customers

Corney and Barrow
Central Hong Kong, HK

Export Manager UK On Trade

AdVini
Home based in London or the South East, GB

Global Head of Marketing

ATOM Brands
Tunbridge Wells, GB

Sales Executive

Three Wine Men
Home-based but must be available to travel throughout the UK with frequent trips to London, GB

Senior Sales Operations Executive

Enotria&Coe
Park Royal, London, GB

Sales Administrator

Les Caves de Pyrène
Guildford, UK

On Trade & Corporate Accounts Manager

The Champagne Company
Birmingham, UK

Pink Rosé Festival

Cannes,France
7th Feb 2018

VinoVision Paris

Paris,France
12th Feb 2018

Vinisud

Montpellier,France
18th Feb 2018
Click to view more

The Global Pinot Noir Masters 2018

Deadline : 31st January 2018

The Global Organic Masters 2018

Deadline : 12th February 2018

Click to view more

The Global Malbec Masters 2017

the drinks business is proud to announce the inaugural Global Malbec Masters 2017

The Global Sparkling Masters 2017

the drinks business is thrilled to announce the launch of The Global Sparkling Masters.

Click to view more