Realbeer.com
 
Nov 24, 2014

News

New Miller rumors

Milwaukee brewer may be on block, with SAB possible suitor

Mar 18, 2002 - New reports over the weekend indicate that Philip Morris wants to sell Milwaukee-based Miller Brewing Co., and speculation is that South African Breweries could be the buyer. SAB and Philip Morris refused to speculate on a potential Miller deal, and there were indications other European brewers including Interbrew could be interested in acquiring Miller.

ADVERTISEMENT

A deal apparently would value Miller at $6 billion.

A merger would expand SAB's interests in more mature markets and away from its focus on developing areas. It brews two-thirds of Africa's beer, is number two in China and a major player in eastern Europe. Euro monitor International reports that beer sales around the world were up 10% last year, with 42% growth in developing eastern European markets.

While SAB has thrived in those markets it would be facing a tougher battle in the United States, where Miller is a distant No. 2 to Anheuser-Busch and losing ground. On the flip side, the new company would be the second largest in the world, behind only A-B, and a merger could allow SAB to greatly boost its earnings in a currency other than the weakening South African rand.

Presumably, SAB would also use the Miller distribution network to boost sales of some of its international brands, such as the Czech-brewed Pilsner Urquell.


Search The Real Beer Library For More Articles Related To: SOUTH AFRICA, Miller Brewing, South African Breweries

Search
Find whatever in the beer world you are looking for. Enter a search word or phrase, then click GO.

ADVERTISEMENT