SABMiller takeover talk heats up

15th July, 2014 by Neal Baker

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Your email address will not be published.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 *

Subscribe to our newsletters

Job vacancies

Beer Development Specialist

Matthew Clark
London, UK

Fine Wine Sales Administrator

Davy's Wine Merchants
London, UK

Business Development Manager - On Trade

FINE+RARE
Central London, GB

Regional Sales Manager

Swallow Associates Ltd
Home Based: North-West England, UK

London Account Manager Role (Full Time)

LITTLE BIRD GIN
Home based with UK travel. , GB

Sales Operations Manager

Bibendum PLB
London, UK

Digital Marketing Executive (online content & community manager)

Corney & Barrow Limited
London E1W (near Tower Bridge), UK

Store Manager – Premium Drinks

Amathus Drinks PLC
London, UK

On-Trade Regional Sales Manager

Anthony Byrne Fine Wines
London and the South East, UK

Wine Sales – Northwest England

Gerrard Seel
North West England

Senior On-Trade Sales Manager – English Sparkling Wine Company

COREcruitment
London based with national travel, UK

National Account Manager – RTM – On Trade

COREcruitment
Home based with frequent UK travel

The Global Sparkling Masters 2017

Deadline : 14th June 2017

The Global Syrah Masters 2017

Deadline : 14th June 2017

The Global Malbec Masters 2017

Deadline : 14th June 2017

The Global Beer Masters 2017

Deadline : 1st August 2017

Click to view more

The Drinks Business Awards 2017

Now in its 15th year, the db awards have become the most authoritative, internationally respected badge of achievement in the alcoholic drinks industry.

The Asian Cabernet Sauvignon Masters 2017

the drinks business Hong Kong announces its first year of The Asian Cabernet Sauvignon Masters.

Rioja Masters 2016

Now in its fifth year, the competition will recognise and reward the finest Riojas on the world stage.

Fortified Masters 2016

Now in its third year, The Fortified Masters will reward the best fortified wines on offer.

Click to view more