AB InBev takes over SABMiller

Global brewer Anheuser-Busch InBev (AB InBev) has acquired South African brewer SABMiller operations in a deal estimated at over $100 billion (about sh338.8 trillion).

The deal concluded late last month will see AB InBev takeover SABMiller's operations globally, including Uganda.

In a statement issued yesterday, Nile Breweries managing director Greg Metcalf said the combination of AB InBev and SABMiller into one company will create more opportunities along the supply chain.

Metcalf added that combining the two companies' strong heritage, passion for brewing and great brand portfolio will drive long-term growth and create value for businesses partners, stakeholders and consumers.

"Through our products, brands and investments in our communities, we want to bring more people together and make our company an integral part of our consumers' lives for generations to come," Metcalf says.

Although international media have indicated that AB InBev will drop the SABMiller name and begin trading as a combined company, Metcalf notes that that there will be no rebrand of the Uganda franchise following the acquisition but promised to give updates to commercial and administrative processes as they arise.

"As at our relationship, it will remain business as usual. We strongly believe in the equity of the local trading names and so Nile Breweries Limited in Uganda will remain as Nile Breweries Limited. And we will supply and market our brands as we currently do," he said.

The deal which gives AB InBev presence in 17 African countries makes it a brewing powerhouse with an estimated 46% of global beer profits and 27% of global volume.

Built through the 2004 combination of Brazil's AmBev and Belgium's Interbrew, the company has now bought four major brewers since 2008, including Anheuser-Busch Cos., Mexico's Grupo Modelo and Korea's Oriental Brewing.

AB InBev chief executive officer Carlos Brito noted that the acquisition of SABMiller operations will enable it to have operations in virtually every major beer market and an expanded portfolio that includes global, multi-country and local brands.

Brito adds that AB InBev will also continue to develop its business in partnership with its suppliers as it continues brewing the best beers using the best ingredients.

AB InBev also anticipates benefiting from a geographically diversified platform, with a stronger presence in key emerging regions with attractive growth prospects, such as Africa and Latin America.

"The growth opportunities in these developing markets complement the stability and strength of AB InBev's strong existing presence in developed markets.

"As a truly global brewer, we will be able to achieve more together than each of us could separately," Brito noted.

He added: "We remain focused on delivering superior top-line growth and increasing shareholder value. Building on our strong heritage, passion for brewing and expanded brand portfolio, we are also committed to helping farmers, retailers, entrepreneurs and communities thrive.

He also explained that AB InBev will support communities by driving agricultural productivity, innovation and resilience as it strives to be an engine for growth and economic development across its markets of operation.

The brewer also plans to help small retailers grow by expanding trade programmes and solutions, and by providing business skills training for entrepreneurs in its supply chain.