Beer and Company Essay

The due south African Breweries Limited is a keeping corporation invested in and winning management righteousness for a portfolio of argumentationes, principally engaged in meeting mass grocery consumer needs. Beer is the study profit contri saveor, to a greater extent over an meaning(a) labyrinthine sense is provided by wagers in complementary inebriation fits, grassing, hotels, and the be and sum up of selected consumer goods and services, together with strategical enthronisations in business sectores which support the chief(prenominal)stream interests. Company History The south African Breweries Limited (SAB) is a throw offing conjunction whose principal line of business is brew.The go with hairgrips an impressive 98 part dispense of the beer securities industry in its root country of southern Africa, where it swaps 14 brands of beer, including local lager beers fastness and Lion as salutary as unlike brands brewed chthonian permissionHe ineken, Guinness, Amstel, and Carling Black Label. Aggressive overseas magnification following the destination of apartheid, however, has excessively give SAB ownership of, or places in, more than(prenominal) than 25 beer makeries in the rising merchandises of telephone deepen atomic make out 63, mainland chinaware, and sub-Saharan Africa. Overall, in terms of volume, atomic number 16 African Breweries is the homos quaternary largest brewer.SAB excessively has a variety of nonbrew operations, such(prenominal) as carbonated and natural issue drinks and forward-looking(prenominal) drinkables, retailing, hotels and gaming, and manufacturing of safety matches and glass. The participation has been divesting many a(prenominal) of these noncore assets in the ripe 1990s. SABs biography is in many ways the fib of the southern African create from raw stuff industry, n proterozoic notably by dint of the presidential term-ordered commixr of the largest breweri es in 1956. The friendships history was similarly greatly influenced by the apartheid system and its feat on the interior(prenominal) economy, on domestic firms, and on foreign coronation in south Africa.former(a) History The discovery of gold on the Witwatersrand (a region embrace Johannesburg) in 1875 brought large numbers of prospectors to conspiracy Africa. Small outposts for white settlers were transform into ill-tempered cities with sensitive industries. Several brewmasters, near with itsy-bitsy experience, began to produce a variety of beers which this instant come uponed popularity with the settlers. In 1889 a British bluejacket named Frederick Mead left his ship in Durban and took a job working in the canteen of a local army post at Fort Napier.While there, Mead, who was fillet of solely 20, became acquainted with a businessman in Pietermaritzburg named George Raw. Neither of them k tender anything about brew, scarcely they persuaded the local residents to help consecrate the native Brewery Syndicate. afterwarfared purchasing a factory site, Frederick Mead returned to England to achieve machinery and raise large(p). In need of create from raw material expertise, Mead approached W. H. Hackblock, head of Morgans Brewery in Norwich. The dickens men became friends and Hackblock agreed to serve as chair of Meads companionship, which was registered in 1890 as the Natal Brewery Syndicate ( reciprocal ohm East Africa) Limited.The community brewed its jump beer in July 1891. Mead remained interested in establishing a brewery in the apace maturement Witwatersrand. In 1892 he purchased the Castle Brewery in Johannesburg from its proprietor Charles glassful. The expansion of this facility, however, was beyond the content of the Natal Brewery Syndicate, and Mead returned to England to attract sore investors. In the final arrangement, Mead formed an former(a)(a) larger family found in slap-up of the unify Kingdom cal take The i n the south African United Breweries. This guild took over the operations of both the Natal Brewery Syndicate and the Castle Brewery. afterwards body structure of the new Castle Brewery, entropy African United Breweries made special share offerings which were purchased by mho Africas largest investment houses. Subsequent growth precipitated a restructuring of the come with and reincorporation in capital of the United Kingdom on whitethorn 15, 1895, as The southerly African Breweries Limited. In 1896 southward African Breweries purchased its low gear-class honours degree be oning houses. That same division, Frederick Mead turn taild to England for health reasons single if continued to occupy a adorn on the board of film directors and frequently returned to southwestward Africa.From capital of the United Kingdom, Mead directed the purchase of machinery for create from raw material lager beer from the Pfaudler Vacuum Company in the United States. Patent restrictions and mechanical difficulties delayed issue of Castle lager until 1898. The beer catched such widespread popularity that competing breweries rushed to introduce their own lagers. southeasterly African Breweries, or SAB, was listed on the capital of the United Kingdom parentage up Exchange in 1895 and 2 old age afterwards became the low gear industrial guild to be listed on the Johannesburg Stock Exchange.Through these listings SAB had greater access to supererogatory investor capital. On October 11, 1899, a war broke out between British compound forces and Dutch and Huguenot settlers k instantaneouslyn as Boers. The war drove residents of Johannesburg out of the urban center and squeeze the Castle Brewery to close for al to the highest degree a year. When British troops recovered the area, the brewery had bear on little(a) or no damage. British authorities regarded the plant as an necessary industry, and encouraged the company to resume action in August 1900.Disrupte d supply lines caused paucitys of yeast and other raw materials, but at bottom a year work had returned to full capacity. The Boer contend cease in 1902 but was followed by a heartbreaking scotch depression. The brewing industry was not as adversely affected as others, however, and SAB was able to continue its expansion crosswise southern Africa. The company acquired the Durban Breweries and Distillers company, and established a new plant at Bloemfontein. SAB purchased Morgans Brewery in Port Elizabeth in 1906 and, vanadium geezerhood later, acquired another brewery in Salisbury, Rhodesia (now Harare, Zimbabwe).At its northern some point, SAB established a brewery at Ndola, Northern Rhodesia (now Zambia). W. H. Hackblock died in 1907 and was succeeded as chair by Sydney chamber. In 1912 Chambers led the company into an innovative arrangement with its competitor, Ohlssons Brewery, to cultivate hop collectively at a site near the city of George, midway between Port Elizab eth and ness Town. A articulatio subordinate called confederacy Hop Growers spent many years developing new hybrids, which delayed the first commercial use of second African-grown hops until 1920.Diversified into Bottles, Lodging, and Mineral Water in Early 20th Century afterward Frederick Mead died in August 1915, can buoy Stroyan, who succeeded Sydney Chambers a few months earlier, became the most important date in SAB management. Stroyan faced a serious challenge the following year when hostilities during valet de chambre War I fitful the supply of bottles to southmost Africa. SAB decided to establish its own bottle-making plants in 1917. Actual mathematical product, however, did not begin until 1919, the year the war ended.another(prenominal) economic depression beset south Africa after humankind War I, but steady growth in the bespeak for beer reduced many of the detrimental do of the depression. SAB was pecuniaryly strong enough in 1921 to purchase the Grand Hotel in mantelpiece Town, an important addition to the companys lodging business. SAB gained an interest in the mineral water business in 1925, when it purchased a substantial interest in the Schweppes Company. The huge Depression of the former(a) 1930s had little effect on the randomness African brewing industry SAB continued to stretch forth its operations and improve its facilities.The companys biggest problems were shortages of labor and capital. The Spanish Civil War and rising semipolitical tensions in Europe during the mid- and late 1930s caused a good luck in the supply of cork to southbound Africa. Faced with a severe shortage of cork seals for its beer, SAB developed a regularity of recycling old cork until a new supplier of cork could be found. Castle Beer accompanied confederation African exchangeiers to the East African and Mediterranean theaters of World War II, but apart from its intimacy in Europe, South Africa was relatively insensible(p) by World War II .When hostilities ended in 1945, SAB turned its attention to but modernization and expansion. Arthur Griffith-Boscawen, who had succeeded John Stroyan as chairman in 1940, died in 1946, and was replaced by John Stroyans son, Captain John R. A. Stroyan. chthonian the leadership of the younger Stroyan, SAB concentrated on the establishment of a South African barley industry as an off leg of the vocalize agricultural project it operated with Ohlssons. coup detat of Ohlssons and United Breweries in 1956 South African Breweries entered a new stage of its development in 1950.That year, in the midst of a large corporate modernization chopine, SAB decided to move its head self-assurance from London to Johannesburg. In 1951 the company acquired the Hotel capital of Seychelles in Johannesburg, and a second brewery in Salisbury. Captain Stroyan retired the following year and returned to England. His achievementor, a talented barrister named J. K. Cockburn Millar, died after only qua druplet months in office, and was replaced by a solicitor, S. J. Constance. afterward producing nothing but beer for more than 60 years, SAB began to introduce a range of pot likker products.The incentive to diversify was provided by change magnitude taxes on beer. Consumption of beer in South Africa fell for the first time on record and showed every indication of however decline. Officials of the trinity largest brewing companies in South Africa, SAB, Ohlssons Cape Breweries, and United Breweries, met on several occasions in London and Johannesburg to discuss the viability of competition at a lower place deteriorating market conditions. In 1956 these officials decided that the thirdly companies should merge their operations into one large brewing concern.SAB acquired all the shares of Ohlssons and United Breweries, therefrom retaining the South African Breweries name. B. C. Smither of Ohlssons and M. W. J. dogshit of United Breweries joined the SAB board of directors. Al though the new company crackled 90 share of the market for beer in South Africa, antiquated production facilities narrowed profit margins. In reaction, company activities were centralized in the Transvaal and the westerly Province, areas where the tierce companies had previously competed. In addition, the old Castle Brewery in Johannesburg was closed in 1958. After succeeding Constance as chairman in 1959, M.W. J. mother fucker initiated a further variegation into boozes and spirits. In 1960 SAB acquired the Stellenbosch Farmers winemaker and later added Monis Wineries. Bull retired at the end of 1964 and was replaced by Dr. Frans J. C. Cronje, an economist and lawyer with substantial experience in government. The company encountered a severe financial crisis in 1966 when Whitbread and Heineken entered the South African beer market. The most damaging market developments, however, came from government billet as successive increases in scrape up duties made beer the most hea vily taxed potable per serving.Consumers began to abandon beer for drink and sorghum beer. SAB was able to reduce the effect of this crisis by change magnitude sales of products from the Stellenbosch vinory. South African Breweries headland executive officer Ted Sceales was instrumental in the creation of a new subsidiary called Barsab Investment Trust, give voicely held by SAB and Thomas Barlow & Sons Ltd. (later Barlow Rand), the rapidly expanding mining services sort. Barsab permitted SAB and Barlow to invest in from each one other and pool their managerial and administrative resources.It in any case provided SAB with the resources needed to adapt to rapidly changing market conditions. Sceales died following an motorcar accident in 1967, but the success of Barsab continued under the new foreland executive, Dick Goss. South African Breweries first attempt to move its legal trail from Britain to South Africa in 1950, but was pr take downted from doing so by complex t ax obligations to the British government. Consequently, SAB, which still derived about one- tercet of its income from investments in Rhodesia and Zambia, was bound to observe the British patronage embargo against Rhodesia in 1967.Reincorporated in South Africa in 1970 Parliamentary motions to permit the reincorporation of SAB in South Africa were initiated in 1968. These motions, however, did not gain approval until March 17, 1970. On whitethorn 26, 1970, after 75 years as an English company, SAB became a de jure South African company. During the late 1960s SAB began brewing a number of new beerssome under license from foreign brewersincluding Guinness, Amstel, Carling Black Label, and Rogue. The company also acquired the Old Dutch and crap brands, as puff up as Whitbread in South Africa.While sales of wine and spirits continued to rise, SAB sold a number of its booze-oriented hotels, and reorganized those that remained under a new subsidiary called the Confederate insolate Ho tel flock. Southern Sun, which operated 50 hotels in South Africa, was formed by the merger in 1969 of the existing SAB hotel interests with those of the Sol Kerzner family. The South African government barred SAB from further investment in the liquor industry and throttle its ability to invest overseas. The company and so made several attempts to diversify its operations.In 1972 SAB and Barlow Rand decided to alter their collaboration and split Barsab. As a result, devil power Barsab holdings, the Shoe Corporation, and Afcol, South Africas largest article of furniture producer, came under SAB tick off. The following year, SAB acquired OK Bazaars, a large discount department broth chain. Certain other investments were disposed of, however, including punts in banking and food products. Several brewing interests attempted to challenge SABs dominant positioning in the South African market. unhomogeneous German interests set up breweries in Botswana and Swaziland in a failed attempt to gain a foothold in South Africa. Louis Luyt, a South African entrepreneur, also failed, and sold his breweries to the Rembrandt classify in 1973. The Luyt breweries, which formed the core of Rembrandts alcoholic beverage group, were later incorporated as the worldwide Breweries. Determined to succeed, Rembrandts chairman, Dr. Anton Rupert, committed his company to a scheme of competition based on control of liquor retail outlets.In 1978 Rembrandt acquired a 49 part share of Gilbeys, the third largest liquor group in South Africa. The addition of Gilbeys 100 retail outlets gave Rembrandt access to a total of 450 stores. South African Breweries responded by acquiring Union Wine, an independent liquor retailer with 24 hotels and over 50 retail outlets. Once again, market conditions were not conducive to competition. The government, therefore, proposed a rationalization program in which SAB would take over Rembrandts brewing interests and turn over its wine and spirits ope rations to an independent subsidiary called Cape Wine and Distillers.The program, executed in November 1979, also called for Rembrandt to turn over its Oude Meester wine and spirits operations to Cape Wines, in which SAB, Rembrandt, and the KWV wine growers cooperative each possess a 30 share interest. The remain 10 share interest was sold to private investors. Government Restrictions Led to more than Diversification in the mid-eighties and Early 1990s By the proto(prenominal) 1980s the South African governments system of racial separation (apartheid) and deteriorating brotherly conditions for lows had become internationalist issues.Many business leaders openly called for change, but the government still prevented companies such as SAB from transferring capital out of South Africa through foreign investments. Often these companies had little choice but to reinvest their surplus capital in South African ventures, which in turn gave them a more crucial interest in the resol ution of social and human rights problems within South Africa. Many foreign-owned companies, which faced less restrictions on divestment, sold their South African subsidiaries and closed their offices in South Africa.This make out made acquisitions by South African companies easier. SAB took over control of the ABI loony drink concern from Coca-Cola, and later added several clothe retailers, including Scotts Stores (acquired in 1981) and the Edgars chain (added in 1982). A government order in 1979 for SAB to sell its Solly Kramer retail liquor stores was completed in 1986, five years before its deadline. withal in 1986 SAB established a joint venture with Ceres harvest Juices to sell leading noncarbonated juice brands Ceres, Liquifruit, and Fruitee. In 1987 Murray B.Hofmeyer succeeded Cronje as chairman. Hofmeyer and his successor, Meyer Kahn, continued to diversify through acquisition, adding Lion determine Company, the leading manufacturer of safety matches in Africa, in 1 987 Da Gama Textiles Company, a leading South African textile manufacturer, in 1989 and the Plate Glass Group, a manufacturer of glass and board products, in 1992. End of Apartheid Fueled major Changes in the 1990s The dismantling of apartheid ultimately began in 1990, with the unbanning of opposition political parties, including the African field of study Congress, and the release of political prisoners, including Nelson Mandela. study political changes rapidly followed. In 1991 the stay apartheid laws were repealed. In 1992, an all-white referendum approved a new constitution that would lead to eventual salvage elections. Finally, in 1994, the first nationwide desolate elections were held and were won by the ANC, with Mandela elected president. SAB&mdashting generally out of self-interest since 85 percent of the beer in South Africa was purchased by colourswas well out in front of the political changes as it had begun to affiance blacks in the first 1980s.By 1985 28 perce nt of stipendiary employees were black, a figure that rose to 48 percent by 1994. Nevertheless, the threat of a government-forced legal separation of SABs beer monopoly hung over the company following the end of apartheid. Partly in response to this threat, and part in response to the loosening of laws regarding foreign investment, the Kahn-led South African Breweries aggressively grow outside its abode country starting in 1993. That year, SAB spent US$50 trillion for an 80 percent stake in Hungarys largest brewer, Dreher Breweries, the first of a serial publication of moves into the emerging markets of central Europe.In 1996 the company gained joint control of two of the largest breweries in Poland, letch Brewery and Tyskie Brewery, as well as three breweries in Romania and one in Slovakia. In 1994 SAB created a joint venture with Hong Kong-based China Resources Enterprise Limited by too soon 1998 this joint venture had gained majority control of five breweries in China. A third area of foreign growth for SAB was in sub-Saharan Africa, where management control was gained of breweries in Botswana, Swaziland, Lesotho, Zambia, Tanzania, Mozambique, Ghana, Kenya, Ethiopia, Zimbabwe, and Uganda during this period.In August 1997 Kahn was appointed pass executive of the South African law of nature service, becoming the first civilian to hold the post. The outspoken Kahn, who had been vocal in life history for the rapid liberalization of the economy and for a restoration of law and order, was made trusty for cracking voltaic pile on a national crime epidemic. Taking over as playing chairman of SAB was Cyril Ramaphosa, South Africas most prominent black capitalist and a former hawkish trade unionist. By this time, South African Breweries was the worlds fourth largest brewer and had a rapidly expanding international brewing empire.The company was now unleash to repose its noncore businesses in order to concentrate more closely on brewing and its othe r beverage operations. Under Ramaphosa, it did just that. In late 1997 and early 1998 SAB divested its holdings in OK Bazaars, Afcol, and Da Gama Textiles, and announced that Lion equalize and Conshu Holdings, a footgear maker, were also promising to be jettisoned. These divestments were not proceeding quickly enough for some observers, but SAB had already managed to strengthen its overall position in the face of the continued threat of the breakup of its domestic beer monopoly.Selling off noncore assets was unloose up capital for additional investment in foreign breweries, which would further ebb the impact of any government intervention. trader Subsidiaries Southern Associated Maltsters (Pty. ) Ltd. SAB Hop Farms (Pty. ) Ltd. SAB spherical Holdings Inc. SAB internationalist (Africa) B. V. (Netherlands) Botswana Breweries (Pty. ) Ltd. (40%) Kgalagadi Breweries (Pty. ) Ltd. (Botswana 40%) Swaziland Brewers (Pty. ) Ltd. (60%) Lesotho create from raw stuff Company (Pty. ) Ltd. (39%) Tanzania Breweries Ltd.(46%) Cervejas de Mozambique Limitada (65%) Zambian Breweries Plc (45%) Nile Breweries Limited (Uganda 40%) SAB global (Europe) B. V. (Netherlands) Dreher Breweries (Hungary 85%) satyr Browary Wielkopolski S. A. (Poland 32%) SC Vulturul S. A. (Romania 70%) Compania Cervecera de Canarias S. A. (Spain 51%) SC Pitber S. A. (Romania 81%) SC Ursus S. A. (Romania 73%) Browary Tyskie Gorny Slask S. A. (Poland 45%) SAB International (Asia) B. V. (Netherlands) China Resources Enterprise Beverages Ltd. (49%) China Resources Shenyang eccentric Beer Co. Ltd.(China 44%) China Resources Dalian Brewery Co. Ltd. (49%) Shenzhen Cest Bon nutrient and Drink Co. Ltd. (China 33%) China Resources (Jilin) Brewery Co. Ltd. (90%) Delta Corporation Ltd. (Zimbabwe 23%) Seychelles Breweries Ltd. (20%) Accra Breweries Limited (Ghana 50. 5%) Amalgamated Beverage Industries Ltd. (68%) Coca-Cola Canners (Pty. ) Ltd. (24%) Can Vendors (Pty. ) Ltd. Appletiser South Africa (Pty . ) Ltd. Appletiser Pure Fruit Juices (Pty. ) Ltd. Ceres Fruit Juices (Pty. ) Ltd. (35%) Valaqua (Pty. ) Ltd. Associated Fruit Processors (Pty. ) Ltd. (50%) Traditional Beer Investments (Pty.) Ltd. Distillers Corporation (SA) Ltd. (30%) Stellenbosch Farmers Winery Group Ltd. (30%) Edgars Stores Ltd. (65%) Amalgamated Retail Ltd. (Amrel) (68%) Southern Sun Holdings Ltd. Plate Glass and Shatterprufe Industries Ltd. (68%) Da Gama Textile Company Ltd. (61%) The Lion Match Company Ltd. (71%) Conshu Holdings Ltd. (67%) International Expansion in the Post-Apartheid Era The dismantling of apartheid finally began in 1990, with the unbanning of opposition political parties, including the African National Congress (ANC), and the release of political prisoners, including Nelson Mandela. study political changes rapidly followed. In 1991 the stay apartheid laws were repealed. In 1992, an all-white referendum approved a new constitution that would lead to eventual chuck up the sponge election s. Finally, in 1994, the first nationwide free elections were held and were won by the ANC, with Mandela elected president. SABacting largely out of self-interest assumption that 85 percent of the beer in South Africa was purchased by blackswas well out in front of the political changes as it had begun to hire blacks in the early 1980s.By 1985, 28 percent of salaried employees were black, a figure that rose to 48 percent by 1994. Nevertheless, the threat of a government-forced breakup of SABs beer monopoly hung over the company following the end of apartheid. Partly in response to this threat, and partly in response to the loosening of laws regarding foreign investment, the Kahn-led South African Breweries aggressively expanded outside its home country starting in 1993. That year, SAB spent $50 million for an 80 percent stake in Hungarys largest brewer, Dreher Breweries, the first of a series of moves into the emerging markets of central Europe.From 1995 to 1997 the company gained joint control of two of the largest breweries in Poland, Lech Brewery and Tyskie Brewery, as well as three breweries in Romania and one in Slovakia. In 1994 SAB created a joint venture with Hong Kong-based China Resources Enterprise Limited by early 1998 this joint venture had gained majority control of five breweries in China. A third area of foreign growth for SAB was in sub-Saharan Africa, where management control was gained of breweries in Botswana, Swaziland, Lesotho, Zambia, Tanzania, Mozambique, Ghana, Kenya, Ethiopia, Zimbabwe, and Uganda during this period.In August 1997 Kahn was appointed chief executive of the South African constabulary service, becoming the first civilian to hold the post. The outspoken Kahn, who had been vocal in commerce for the rapid liberalization of the economy and for a restoration of law and order, was made creditworthy for cracking down on a national crime epidemic. Taking over as acting chairman of SAB was Cyril Ramaphosa, South Africas most p rominent black capitalist and a former belligerent trade unionist.By this time, South African Breweries was the worlds fourth largest brewer and had a rapidly expanding international brewing empire. The company was now free to omit its noncore businesses in order to concentrate more closely on brewing and its other beverage operations. Under Ramaphosa, it did just that. From late 1997 through early 1999 SAB divested its holdings in OK Bazaars, Afcol, Da Gama Textiles, Edgars, Lion Match, and Conshu Holdings, a footwear maker. With the mid-1999 sale of Plate Glass, SAB had trimmed its holdings down to beer, soft drinks, wine and liquor, and hotels and gaming.The year 1999 was a pivotal year in SABs history for a host of other reasons as well. Seeking access to capital markets better endowed that those at home, the company in early 1999 shifted its headquarters rearwards to Londonreincorporating itself as South African Breweries plcand moved its primary stock exchange listing from Johannesburg to London, retaining the former as a secondary listing. As part of its London listing, it raised ? 300 million to memory further international expansion. There were also changes on the management front.Kahn returned to the chairmanship, his two-and-a-half-year stint at the police service complete Ramaphosa remained on the board as a director. In addition, Graham Mackey, who had served as group managing director since 1997, was named chief executive in early 1999. On the international front, SAB acquired a stake in a sixth Chinese brewery in 1999 and began producing beer in Russia at Kaluga create from raw material Company, which had been acquired the previous year. SABs two burnish breweries, Lech and Tyskie, were merged to form Kompania Piwowarska S. A.The most important brewery transaction that year, however, occurred in October, when SAB acquired from Nomura International plc for $321 million a controlling interest in Pilsner Urquell and Radegast, two brewers in th e Czechoslovakian Republic that combined comprised the leader (with a 44 percent market share) in a nation whose citizens consumed more beer per capita than anyone else in the world. The crown jewel of this deal was the Pilsner Urquell brand, the most famous Czech beer and the original pilsner, first produced at a brewery in Pilsen in 1842.SAB began laying plans to make Pilsner Urquell the companys flagship brand outside of Africa and to seek access into developed markets through the export of this brand. Via this acquisition, South African Breweries became the leader of the central European beer market and jumped into third place among global brewing titans. Moving into the Developed World As SAB moth miller, Early 2000s SABs purpose into emerging markets continued in the early 2000s. South African Breweries entered the Indian beer market for the first time in 2000, taking a majority stake in Narang Breweries.Control of two more Indian brewers, Mysore Breweries and Rochees Brewe ries, was purchased the following year. In April 2001 SAB and the Castel group, the two largest beverage companies on the African continent, entered into a strategic alliance whereby SAB exchanged a 38 percent interest in its African division (excluding South Africa) for a 20 percent stake in Castels beer business. SAB thus gained a share of a wider array of African breweries, and the two partners also agreed to seek investments in new African markets via 50-50 joint ventures.Also in 2001 SAB entered into a new joint venture in China with the Sichuan Blue steel Breweries Group, which owned ten breweries in Sichuan province. SAB now had interests in more than two dozen Chinese breweries and had positioned itself as that nations number two brewer, trailing only Tsingtao. Yet another development in 2001 was that South African Breweries became the first international brewer to enter the Central American market.In November the company acquired a 97 percent stake in Cerveceria Hondurena , S.A. , the sole brewer and the largest bottler of soft drinks (Coca-Cola) in Honduras, from the pogy Food Company Inc. for $537 million. Simultaneously, SAB and the prominent Meza family of El Salvador created a joint venture called BevCo Ltd. to which SAB contributed its new Honduran holding and the Meza family contributed the bulk of its brewing, soft drink, and bottled water businesses in El Salvador. By fiscal 2002, just eight years after its first brewing acquisition outside of Africa, 55 percent of SABs $4.36 billion in revenues were derived from its non-South African operations. This figure would shoot up to an even more remarkable 75 percent just one year later following the companys boldest move yetits takeover of miller Brewing Company, the number two beer maker in the worlds largest beer market, the United States, whose main brands included moth miller Genuine Draft, milling machine High Life, milling machine Lite, and Milwaukees Best. accomplish in July 2002, the de al consisted of a stock swap with moth millers owner, Philip Morris Companies Inc., that was cute at $3. 48 billion.SAB additionally draped $2 billion in milling machine debt. Upon completion of the acquisition, SAB changed its name to SABMiller plc and was now the worlds number two brewer, stern only Anheuser-Busch. Philip Morris (which changed its name to Altria Group, Inc. in 2003) became the biggest SABMiller shareowner with a 36 percent economic interest and 25 percent of the vote rights (the total at which it was capped) and also gained three seats on the SABMiller board. Miller had preserve 2001 revenues of $4.24 billion but had for some time been losing market share to the number one and number three U. S. players, Anheuser-Busch and Adolph Coors Company, respectively. SABMiller took conterminous action to try to reverse Millers fortunes, announcing that one of Millers nine U. S. breweries would be closed, and bringing in a new CEO for Miller, Norman Adami, who had h eaded up the South African brewery operations of SABMiller. In March 2003, in a further pullback from noncore operations, SABMiller moved its completed hotel and gaming interests into a new company called Tsogo Sun Holdings (Pty.)Ltd. , which was to be majority controlled by black empowerment company Tsogo Investments. SABMiller held an sign 49 percent interest in the new company but verbalize that it intended to continue to reduce its hospitality holdings. Despite having just completed the Miller acquisition, the company did not shy apart from making additional purchases and deals. Early in 2003 Browar Dojlidy, a brewer in northeastern Poland, was acquired for $38 million. In June SABMiller made its first major investment in Western Europe, buying a 60 percent stake in Birra Peroni S.p. A. , the number two brewing company in Italy, for EUR 246 million ($279 million).Later in 2003 Peroni ended its authorise brewing and selling of the Budweiser brand in Italy and instead starte d import sales of Miller Genuine Draft. Similar synergies between SABMillers increasingly global operations were organism implemented, such as the launch of Pilsner Urquell and Miller Genuine Draft in South Africa in early 2003 and the introduction of Miller Genuine Draft into several more European countries, including Russia, Romania, the Czech Republic, and Poland.Over in Asia, SABMiller consolidated its operations in India under Mysore Breweries the operations of Mysore were then consolidated with the brewing operations of Shaw Wallace and Company Limited, the second largest brewing group in India, to form a joint venture called Shaw Wallace Breweries Limited, 50 percent owned by Mysore. This deal woo SABMiller $132. 8 million. The firm spent an additional HK$675 million ($87 million) for a 29.6 percent stake in Harbin Group Limited, Chinas fourth largest brewer and the leader in that countrys northeastern region. The SABMiller of the early 21st century, a globally active compan y with a sharp focus on beverages in general beerwas a far different company from the apartheid-era SAB, which was centered largely in South Africa where it had diversified interests. SABM.