SABMiller Bids for Grolsch

1
SABMiller Bids for Grolsch

• Lindsay Jacobs
• Matt Werner
• Selwyn Birchwood

2
Agenda

• SABMiller History
• Article Summary
• Marketing Implications
• Conclusions
• Questions

3
SABMiller History

• SABMiller's brands of premium international beers
  include Pilsner, Peroni and Miller Genuine Draft,
  as well as a wide range of market-leading local
  brands.
• By the year 2000 SABMillers total sales of beer
  and other beverages reached 77 million
  hectolitres or about 44 000 drinks or 300 ml
  every minute.

4
SABMiller History

• Founded in South Africa in 1895.
• SABs first investment in Europe was in 1990 in
  the Canary Islands.
• SABMiller first listed on the London Stock
  Exchange in 1999 to raise capital for
  acquisitions.
• In 2000 the group purchased the Miller Brewing
  Company in North America from Altria Inc,
  changing its name to SABMiller.

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Article Summary

• SABMiller made offer to buy rival brewer Grolsch
  for 816 million euro (1.2 billion)
• The offer represents an 84 premium to Grolschs
  average closing price.
• Grolsch
• 400 year old premium Dutch beer brand
• SABMiller believes the beer will fit well in
  their portfolio

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Article Summary

• Offer is subject to 75 shareholder approval.
• They dont expect any opposition to the deal or
  counterbids.
• What SABMiller offered goes beyond what we could
  realize on our own. Grolsch Chief Executive
• Will provide both parties win-win scenarios in
  developing both brands

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Grolsch Commercial

• http//youtube.com/watch?v5HYwDUiiMA4featurerel
  ated

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Marketing Implications

• SABMiller believes this will help better position
  themselves and expand into Grolschs markets
  world-wide -- particularly Africa, South America,
  Latin America and Central and Eastern Europe.
• SABMiller plans on using Grolschs distribution
  channels to build their own brands.
• SABMiller can use its own strong market position
  to help foster the brand.

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Marketing Implications

• SABMiller is looking to develop the Grolsch
  brands outside the Netherlands and the U.K.
• Grolsch gets approximately 75 of its revenues
• SABMiller plans on using its own distribution
  channels to develop Grolsch.

10
Conclusions

• Grolsch will have an attractive position within
  SABMiller's portfolio.
• SABMiller will most likely see an increase in
  profits from the acquisition of Grolsch.
• The new relationship will be beneficial on both
  ends.

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Any Questions?

• THANK YOU FOR YOUR TIME!