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Nov, 13 2015

AB InBev takeover SABMiller for 107 billion dollar

AB InBev, the world's largest brewer, gets access to emerging markets through the deal. SABMiller, the world's second-largest beer company, gets 35 per cent of its revenues from Latin America and 34 per cent from Africa, respectively.

Anheuser-Busch InBev, Belgian-Brazilian brewer announced the final terms of its $107-billion takeover of SABMiller, its British-South African rival. The coming together of the two brewing majors will make a "truly global beer company".

AB InBev, the world's largest brewer, gets access to emerging markets through the deal. SABMiller, the world's second-largest beer company, gets 35 per cent of its revenues from Latin America and 34 per cent from Africa, respectively.

In India, SABMiller, with brands such as Haywards 5000 and Knockout is ranked number two in the pecking order of beer companies, after Heineken-backed United Breweries.

According to analysts, the combined entity of SABMiller and AB InBev could put up a strong fight against competitors such as UB and Carlsberg. The latter, Danish major, who entered India in 2007, has grown quickly on the back of a portfolio of strong beer brands such as Palone 8, Tuborg Strong and Carlsberg Elephant.

"Our Indian business year-to-date grew 41 per cent organically in a market growing by an estimated three per cent. The business also delivered significant earnings improvement and for the first time, achieved positive earnings before interest and tax (Ebit) contribution, driven by a combination of volume growth and tight cost control. Tuborg grew 47 per cent and our total market share was around 15 per cent, the highest level ever. In Q3, Tuborg maintained its position from Q2 as the second largest brand in India", said Cees’t Hart, president and chief executive officer of Carlsberg. 

According to industry sources, Carlsberg is now said to be eyeing 20 per cent market share, led by its beer brands that straddle the price pyramid. UB, in contrast, has the ubiquitous Kingfisher, a strong trademark in the Indian beer market.

This year, AB InBev, particularly announced it was going solo by exiting its joint venture with Delhi-based Ravi Jaipuria. The world's largest brewer, maker of Budweiser and Corona beer, said it would bring more of its international brands to India after the split.

InBev is also importing its premium brands Stella Artois and Hoegaarden and is bottling Budweiser beer in India from its two plants in Maharashtra and Telangana.

Comment
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rj.rajeshjain1234@gmail.com 03, Jan 2018
Aren't all the above points true for any business? How is it specific to the frozen foods industry?
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