Grolsch bought by South Africa’s SABMiller

Grolsch bought by South Africa’s SABMiller
Grolsch has accepted SABMiller's offer of €816 million for the company, ending four centuries of independence for the Dutch brewer. Grolsch, which South Africa’s SABMiller first attempted to purchase ten years ago, said the offer was too substantial to overlook.

The acquisition will provide Grolsch with the potential to grow outside of its traditional strongholds, by capitalizing on SABMiller's extensive distribution network. With premium lager growing stronger than standard lager on a global basis, SABMiller could take the brand to countries that it has recently expanded into through its emerging market acquisitions, exploiting the global potential of the brand.

SABMiller has, in the past, overlooked potential acquisitions in Western Europe due to the maturity of the market. However, Grolsch should offer good growth potential due to the fact that it is a premium, not a standard, lager.

Some consumers may not welcome further consolidation due to concerns that small, independent breweries are beginning to disappear, given the high number that have been acquired by global players in recent years.
Published 25-11-2007 (20:49) by Karen Willoughby

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