Nicola’s Notes: End of an era?
If SABMiller is bought out by AB InBev, a cultural icon and SA success story will be no more, writes Nicola Mawson.
|||Anheuser-Busch InBev’s bid for SABMiller - which some reckon will top $100 billion - could not only create a brewing colossus, but also end an era.
AB InBev is currently the world's largest brewer, while home-grown SABMiller is the world’s second-largest maker of beer. It attained this status after buying out Miller Brewing in 2002.
The company, which was previously known as South African Breweries, dates its history back to 1895 - making it a historical icon that is as old as SA’s first industry.
On its website, it notes its origins lie in the Johannesburg gold rush of 1886.
“Digging for gold under Africa’s sun was thirsty work, and enterprising brewers seized the opportunity to refresh the booming population. Foremost among these was Charles Glass, founder of the Castle Brewery. Glass was a perfectionist who would sell only the highest-quality beer, and his thriving business soon caught the attention of investors.”
Two years after founding, it went on to become a listed company, and is currently the second-oldest listed company still around after DRDGold, which made its debut in 1895.
Obviously, South Africans are very thirsty people because the then SAB then went onto become one of the three largest brewers in SA, alongside Ohlsson’s and Chandlers Union Breweries. That was by 1955.
A few years later, SAB had bought out both of its rivals and had 98 percent of the local market tied up.
At the end of the last century, the company went on to become an international brewer, and listed in London. Now it’s a global giant - a true SA success story - making more than 200 beers in over 80 countries and turning over more than $22 million.
Belgium’s AB InBev, by comparison, turns over more than $47 billion a year through its more than 200 brands that collectively own 25 percent of global beer tastebuds.
I’m not surprised it wants to buy out SABMiller - which company wouldn’t want to be a global giant and add to its portfolio, expanding its geographic reach?
It’s quite an accolade for a company that started in dusty Joburg, and still has an office on the outskirts of town.
But I’d be sad to see what is a South African icon become part of another international company; just another unit in a multinational with no brand identity of its own.
SABMiller is a part of our history, and is as much a part of South Africans’ lives as gold dumps are. When we think of having a braai, the image that oft comes to mind is a Castle advert.
Remember that ad where SABMiller pulled continents together? Or any of the ones where sports fans are united?
It’s always portrayed itself as being able to unite and, post democracy, that extended to a nation-building theme.
That’s made it part of our culture, and it’s become a constant in the lives of many South Africans.
Will AB InBev wipe all that out? I hope not.
* Nicola Mawson is the online editor of Business Report. Follow her on Twitter @NicolaMawson or Business Report @busrep.
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