SABMiller’s story began with the establishment of South African Breweries (SAB) in 1895. Founded in Johannesburg during the gold rush era, SAB aimed to meet the growing thirst of miners and prospectors flocking to the region. The company’s rapid success led to its historic listing on the Johannesburg Stock Exchange just two years later, making SAB the first industrial enterprise to do so.
By the early 1990s, South African Breweries was a well-established name in the local market. However, the company had global ambitions. This international expansion started to materialize as SAB made strategic acquisitions across various continents, transforming from a regional player to a global brewing titan.
The Formation of SABMiller
The pivotal moment in SAB’s global expansion came in May 2002 when SAB plc acquired the U.S.-based Miller Brewing Company. This merger led to the formation of SABMiller plc, a new global entity. With this acquisition, SABMiller established itself as one of the world’s largest beer producers, with a wide portfolio of beloved brands, including Miller, Foster’s, and Pilsner Urquell.
The headquarters of SABMiller was situated in Woking, England, but its influence spanned 80 countries worldwide. By 2009, the company was selling an impressive 21 billion liters of beverages annually, reinforcing its position as a dominant player in the global market. Additionally, SABMiller was a major Coca-Cola bottler, further diversifying its business interests.
SABMiller’s Acquisition by AB InBev
In October 2016, a landmark deal reshaped the global brewing industry: Anheuser-Busch InBev (AB InBev), the world’s largest beer producer, acquired SABMiller for a staggering $107 billion. This acquisition not only created the world’s most extensive beer company but also marked the end of SABMiller as a standalone entity. Post-acquisition, SABMiller’s operations were integrated into AB InBev, and its stock ceased trading on global markets.
AB InBev, with its headquarters in Leuven, Belgium, and listings on multiple stock exchanges (Brussels, New York, and Johannesburg), became the ultimate custodian of SABMiller’s extensive brand portfolio. This deal had significant ramifications for the global brewing landscape, consolidating the power of AB InBev and reshaping the beer market dynamics.
SABMiller’s Legacy in South Africa
Despite the global integration, SABMiller’s legacy remains deeply embedded in South Africa. The company’s history is intertwined with the country’s economic development, from supporting local agriculture to creating thousands of jobs. Moreover, SAB’s early listing on the Johannesburg Stock Exchange and its consistent contributions to the South African economy left an indelible mark.
Even under AB InBev’s ownership, SAB’s operations in South Africa continue to be a crucial part of the company’s strategy. AB InBev has maintained SAB’s commitment to community development and sustainability, ensuring that the spirit of SABMiller lives on.