Executive Summary
SABMiller is the leading beer manufacturer in Africa and competes with the best globally. It has an excellent strategy formulation and therefore it is able to not only maintain its competitive advantage but also improve on it. It does this by utilising its resource and capabilities which are unique to SABMiller.
Introduction
SABMiller’s success is founded on a strong and resilient business strategy. This strategy has been built for the long term, with substantial revenues and margin growth predicted for the future. The company has broadened its competitive mindset away from winning “in beer” to winning “with beer” and is working towards building the beer category by attracting more consumers on more occasions.
Part of its
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SABMiller is one of the world 's largest brewers by volume with more than 200 brands. SABMiller has strategic business units (SBUs) in Europe, Latin America, Asia Pacific, North America and Africa. SAB is South Africa 's leading brewer of beer and soft drinks.
According to the SAB website (SAB Overview), the company operates seven breweries and 40 depots in South Africa with an annual brewing capacity of 3.1 billion litres. The SABMiller Africa SBU produced 48.4 billion liters (in 2015) which is 4% more than the preceding year. Its portfolio of beer brands meets the needs of a wide range of consumers and includes five of the country 's top six most popular beer brands namely Carling Black Label, Hansa Pilsener, Castle Lager, Castle Lite and Castle Milk Stout.
The focus of this report will be on the analysis of the SABMiller Africa SBU. This company was chosen as it is completely focussed on the alcoholic beverage industry within Africa. It has a strong strategy in this specific sector with a nett turnover of $7.462million reported for 2015.
Analysis
The two most significant strategic forces driving change in that social and entertainment
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Within the beer brands, SABMiller introduced, Castle lite, a beer with much less alcohol and calorie quantity compared to the original castle. According to the SAB website, www.sab.co.za, castle lite, “at every turn and in every way, Castle Lite continues to innovate to pursue its purpose”. The website goes on to state that castle lite was introduced to solve or address the issue where “In South Africa, progressive and forward looking beer drinkers had a dilemma”, SABMiller had to carter for a certain kind of market, where the progressing or growing middle class of trendy, young, cab conscious people wanted a beer, but were not comfortable with a castle due to societal beliefs and newly found status. Castle lite has continuously evolved during the years, with changes in packaging, serving temperature indicators, all to counter similar brands from competitors, like Heineken and windhoek lite. Castle Lite which has been eventually rolled out across the African region, was SABMiller’s biggest seller in 2015, reaching 5.5million hectolitres(hl) by
B. Falstaff Brewing Corporation produced and sold beer under “Falstaff Lite Beer”. C. Miller argued that the term “Lite” was known under its own brand name and would mistake consumers with Falstaff brand under Lanham Trade-Mark Act. D. It was determined that
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