Beer and Company Essay

The southeastern African Breweries Limited is a holding fellowship initiateed in and taking management responsibility for a portfolio of businesses, principally engaged in meeting mass marketplace consumer needs. Beer is the major profit contri preciselyor, exclusively an important balance is provided by concerns in complementary potables, retailing, hotels, and the bring to pass and supply of selected consumer goods and services, together with strategic investments in businesses which support the mainstream interests. keep comp whatever History The randomness African Breweries Limited (SAB) is a holding companionship whose principal disembowel of business is create from raw stuff.The club holds an impressive 98 percent share of the beer market in its home country of southwest Africa, where it sells 14 brands of beer, including local lagers fastness and king of beasts as salubrious as unusual brands brewed under licenseHeineken, Guinness, Amstel, and Carling Black Label. Aggressive oerseas expansion following the quit of apartheid, however, has as well as given SAB self-command of, or s sorbs in, to a greater extent than 25 breweries in the emerging markets of central Europe, China, and sub-Saharan Africa. Overall, in terms of volume, southeastern African Breweries is the humanss fourth part largest brewer.SAB alike has a variety of non create from raw stuff operations, such as carbonated and natural fruit drinks and other beverages, retailing, hotels and gaming, and manufacturing of safety matches and nut case. The company has been divesting many of these noncore assets in the late 1990s. SABs history is in many ways the history of the South African brewing industry, most notably through the government- cabareted uniting of the largest breweries in 1956. The companys history was also greatly influenced by the apartheid system and its effect on the domestic thrift, on domestic firms, and on foreign investment in South Africa.Early H istory The discovery of gold on the Witwatersrand (a region encompassing Johannesburg) in 1875 brought large numbers of prospectors to South Africa. Small outposts for white settlers were transformed into ready cities with impertinently industries. Several brewmasters, most with little experience, began to produce a variety of beers which immediately gained popularity with the settlers. In 1889 a British sailor named Frederick Mead left his ship in Durban and took a job working in the canteen of a local army garrison at Fort Napier.While there, Mead, who was only 20, became acquainted with a businessman in Pietermaritzburg named George Raw. Neither of them k sunrise(prenominal) anything about brewing, but they persuaded the local residents to help establish the Natal Brewery Syndicate. After purchasing a factory site, Frederick Mead returned to England to procure machinery and bid capital. In need of brewing expertise, Mead approached W. H. Hackblock, head of Morgans Brewery in N orwich. The twain men became friends and Hackblock concur to serve as chairman of Meads company, which was registered in 1890 as the Natal Brewery Syndicate (South East Africa) Limited.The company brewed its first beer in July 1891. Mead remained interested in establishing a brewery in the apace growing Witwatersrand. In 1892 he purchased the Castle Brewery in Johannesburg from its proprietor Charles Glass. The expansion of this facility, however, was beyond the means of the Natal Brewery Syndicate, and Mead returned to England to attract tender investors. In the final arrangement, Mead formed another larger company ground in capital of the United Kingdom called The South African United Breweries. This company took over the operations of both the Natal Brewery Syndicate and the Castle Brewery.After construction of the new Castle Brewery, South African United Breweries made additional share offerings which were purchased by South Africas largest investment houses. Subsequent gro wth precipitated a restructuring of the company and reincorporation in capital of the United Kingdom on May 15, 1895, as The South African Breweries Limited. In 1896 South African Breweries purchased its first boarding houses. That same year, Frederick Mead endured to England for wellness reasons but continued to occupy a seat on the board of directors and frequently returned to South Africa.From London, Mead directed the purchase of machinery for brewing lager beer from the Pfaudler Vacuum Company in the United States. Patent restrictions and mechanical difficulties delayed business of Castle lager until 1898. The beer gained such widespread popularity that competing breweries rushed to introduce their avouch lagers. South African Breweries, or SAB, was listed on the London stemma Exchange in 1895 and two old age later became the first industrial company to be listed on the Johannesburg Stock Exchange.Through these listings SAB had greater access to additional investor capital . On October 11, 1899, a war broke out between British colonial forces and Dutch and Huguenot settlers known as Boers. The war drove residents of Johannesburg out of the city and forced the Castle Brewery to close for almost a year. When British troops recovered the area, the brewery had sustained little or no damage. British authorities regarded the plant as an essential industry, and encouraged the company to resume production in August 1900.Disrupted supply lines caused shortages of yeast and other raw materials, but at heart a year production had returned to full capacity. The Boer War stop in 1902 but was followed by a concentrated economic depression. The brewing industry was not as adversely affected as others, however, and SAB was capable to continue its expansion across southern Africa. The company acquired the Durban Breweries and Distillers company, and realized a new plant at Bloemfontein. SAB purchased Morgans Brewery in Port Elizabeth in 1906 and, pentad years lat er, acquired another brewery in Salisbury, Rhodesia (now Harare, Zimbabwe).At its northernmost point, SAB launch a brewery at Ndola, Northern Rhodesia (now Zambia). W. H. Hackblock died in 1907 and was succeeded as chairman by Sydney Chambers. In 1912 Chambers led the company into an innovative arrangement with its competitor, Ohlssons Brewery, to trail hops articulatioly at a site near the city of George, midway between Port Elizabeth and Cape Town. A joint subsidiary called partnership Hop Growers spent many years developing new hybrids, which delayed the first commercial use of South African-grown hops until 1920.Diversified into Bottles, Lodging, and Mineral piddle in Early 20th Century After Frederick Mead died in August 1915, John Stroyan, who succeeded Sydney Chambers a few months earlier, became the most important figure in SAB management. Stroyan faced a serious challenge the following year when hostilities during World War I interrupted the supply of bottles to South Africa. SAB decided to establish its own bottle-making plants in 1917. Actual production, however, did not begin until 1919, the year the war ended.Another economic depression beset South Africa after World War I, but steady growth in the demand for beer reduced many of the detrimental effects of the depression. SAB was financially strong enough in 1921 to purchase the Grand Hotel in Cape Town, an important addition to the companys lodging business. SAB gained an interest in the mineral water business in 1925, when it purchased a substantial interest in the Schweppes Company. The Great Depression of the proterozoic 1930s had little effect on the South African brewing industry SAB continued to expand its operations and improve its facilities.The companys biggest problems were shortages of labor and capital. The Spanish Civil War and rising political tensions in Europe during the mid- and late 1930s caused a shift in the supply of plug to South Africa. Faced with a severe shortage of cork seals for its beer, SAB developed a method of recycling old cork until a new supplier of cork could be found. Castle Beer accompanied South African soldiers to the East African and Mediterranean theaters of World War II, but apart from its involvement in Europe, South Africa was relatively unaffected by World War II.When hostilities ended in 1945, SAB turned its attention to further modernisation and expansion. Arthur Griffith-Boscawen, who had succeeded John Stroyan as chairman in 1940, died in 1946, and was replaced by John Stroyans son, Captain John R. A. Stroyan. Under the leadership of the younger Stroyan, SAB concentrated on the establishment of a South African barley industry as an extension of the joint agricultural project it operated with Ohlssons. Takeover of Ohlssons and United Breweries in 1956 South African Breweries entered a new stage of its development in 1950.That year, in the midst of a large corporate modernization program, SAB decided to move its head of fice from London to Johannesburg. In 1951 the company acquired the Hotel Victoria in Johannesburg, and a second brewery in Salisbury. Captain Stroyan retired the following year and returned to England. His successor, a intelligent barrister named J. K. Cockburn Millar, died after only four months in office, and was replaced by a solicitor, S. J. Constance. After producing nothing but beer for more than 60 years, SAB began to introduce a range of strong drink products.The incentive to diversify was provided by increased taxes on beer. Consumption of beer in South Africa fell for the first time on record and showed every trait of further decline. Officials of the three largest brewing companies in South Africa, SAB, Ohlssons Cape Breweries, and United Breweries, met on several occasions in London and Johannesburg to discuss the viability of contender under deteriorating market conditions. In 1956 these officials decided that the three companies should merge their operations into adept large brewing concern.SAB acquired all the shares of Ohlssons and United Breweries, thus retaining the South African Breweries name. B. C. Smither of Ohlssons and M. W. J. Bull of United Breweries joined the SAB board of directors. Although the new company controlled 90 percent of the market for beer in South Africa, antiquated production facilities narrowed profit margins. In response, company activities were centralized in the Transvaal and the western Province, areas where the three companies had previously competed. In addition, the old Castle Brewery in Johannesburg was closed in 1958. After succeeding Constance as chairman in 1959, M.W. J. Bull initiated a further diversification into wines and spirits. In 1960 SAB acquired the Stellenbosch Farmers Winery and later added Monis Wineries. Bull retired at the end of 1964 and was replaced by Dr. Frans J. C. Cronje, an economist and lawyer with substantial experience in government. The company encountered a severe financial crisis in 1966 when Whitbread and Heineken entered the South African beer market. The most negative market developments, however, came from government quarters as successive increases in excise duties made beer the most heavily taxed beverage per serving.Consumers began to abandon beer for wine and sorghum beer. SAB was able to reduce the effect of this crisis by increased sales of products from the Stellenbosch winery. South African Breweries CEO Ted Sceales was instrumental in the creation of a new subsidiary called Barsab investment funds Trust, jointly held by SAB and Thomas Barlow & Sons Ltd. (later Barlow Rand), the rapidly expanding mining services sort. Barsab endureted SAB and Barlow to invest in each other and pool their managerial and administrative resources.It also provided SAB with the resources ask to adapt to rapidly changing market conditions. Sceales died following an auto accident in 1967, but the success of Barsab continued under the new boss executive, moth er fucker Goss. South African Breweries first attempted to move its legal domicile from Britain to South Africa in 1950, but was prevented from doing so by complex tax obligations to the British government. Consequently, SAB, which still derived about one-third of its income from investments in Rhodesia and Zambia, was bound to observe the British trade embargo against Rhodesia in 1967.Reincorporated in South Africa in 1970 Parliamentary motions to permit the reincorporation of SAB in South Africa were initiated in 1968. These motions, however, did not gain approval until March 17, 1970. On May 26, 1970, after 75 years as an English company, SAB became a de jure South African company. During the late 1960s SAB began brewing a number of new beerssome under license from foreign brewersincluding Guinness, Amstel, Carling Black Label, and Rogue. The company also acquired the Old Dutch and Stag brands, as well as Whitbread in South Africa.While sales of wine and spirits continued to rise , SAB sold a number of its liquor-oriented hotels, and reorganized those that remained under a new subsidiary called the Southern Sun Hotel Corporation. Southern Sun, which operated 50 hotels in South Africa, was formed by the merger in 1969 of the existing SAB hotel interests with those of the Sol Kerzner family. The South African government barred SAB from further investment in the liquor industry and limited its ability to invest overseas. The company then made several attempts to diversify its operations.In 1972 SAB and Barlow Rand decided to alter their collaboration and dissolve Barsab. As a result, two former Barsab holdings, the skid Corporation, and Afcol, South Africas largest furniture manufacturer, came under SAB control. The following year, SAB acquired OK Bazaars, a large discount department store chain. Certain other investments were disposed of, however, including imagines in banking and food products. Several brewing interests attempted to challenge SABs dominant position in the South African market.Various German interests set up breweries in Botswana and Swaziland in a failed attempt to gain a foothold in South Africa. Louis Luyt, a South African entrepreneur, also failed, and sold his breweries to the Rembrandt convention in 1973. The Luyt breweries, which formed the core of Rembrandts alcoholic beverage group, were later incorporated as the Intercontinental Breweries. Determined to succeed, Rembrandts chairman, Dr. Anton Rupert, committed his company to a scheme of competition based on control of liquor retail outlets.In 1978 Rembrandt acquired a 49 percent share of Gilbeys, the third largest liquor group in South Africa. The addition of Gilbeys 100 retail outlets gave Rembrandt access to a total of 450 stores. South African Breweries responded by acquiring Union Wine, an self-reliant liquor retailer with 24 hotels and over 50 retail outlets. Once again, market conditions were not conducive to competition. The government, therefore, p roposed a rationalization program in which SAB would take over Rembrandts brewing interests and turn over its wine and spirits operations to an independent subsidiary called Cape Wine and Distillers.The program, executed in November 1979, also called for Rembrandt to turn over its Oude Meester wine and spirits operations to Cape Wines, in which SAB, Rembrandt, and the KWV wine growers cooperative each owned a 30 percent interest. The stay 10 percent interest was sold to private investors. Government Restrictions Led to More Diversification in the 1980s and Early 1990s By the earliest 1980s the South African governments system of racial separation (apartheid) and deteriorating social conditions for blacks had become internationalistic issues.Many business leaders openly called for change, but the government still prevented companies such as SAB from transferring capital out of South Africa through foreign investments. Often these companies had little choice but to reinvest their p urposeless capital in South African gauges, which in turn gave them a more crucial interest in the resolution of social and human rights problems within South Africa. Many foreign-owned companies, which faced fewer restrictions on divestment, sold their South African subsidiaries and closed their offices in South Africa.This trend made acquisitions by South African companies easier. SAB took over control of the ABI soft drink concern from Coca-Cola, and later added several clothing retailers, including Scotts Stores (acquired in 1981) and the Edgars chain (added in 1982). A government order in 1979 for SAB to sell its Solly Kramer retail liquor stores was bring to passd in 1986, five years before its deadline. Also in 1986 SAB established a joint venture with Ceres Fruit Juices to sell leading noncarbonated juice brands Ceres, Liquifruit, and Fruitee. In 1987 Murray B.Hofmeyer succeeded Cronje as chairman. Hofmeyer and his successor, Meyer Kahn, continued to diversify through acqu isition, adding Lion Match Company, the leading manufacturer of safety matches in Africa, in 1987 Da Gama Textiles Company, a leading South African textile manufacturer, in 1989 and the denture Glass Group, a manufacturer of glass and board products, in 1992. End of Apartheid Fueled Major Changes in the 1990s The dismantling of apartheid finally began in 1990, with the unbanning of electrical resistance political parties, including the African National Congress, and the step down of political prisoners, including Nelson Mandela.Major political changes rapidly followed. In 1991 the remaining apartheid laws were repealed. In 1992, an all-white referendum approved a new constitution that would lead to eventual free elections. Finally, in 1994, the first nationwide free elections were held and were won by the ANC, with Mandela elected president. SAB&mdashting largely out of self-interest since 85 percent of the beer in South Africa was purchased by blackswas well out in front of the political changes as it had begun to hire blacks in the early 1980s.By 1985 28 percent of salaried employees were black, a figure that come up to 48 percent by 1994. Nevertheless, the holy terror of a government-forced breakup of SABs beer monopoly hung over the company following the end of apartheid. Partly in response to this threat, and partially in response to the loosening of laws regarding foreign investment, the Kahn-led South African Breweries aggressively grow impertinent its home country starting in 1993. That year, SAB spent US$50 million for an 80 percent stake in Hungarys largest brewer, Dreher Breweries, the first of a series of moves into the emerging markets of central Europe.In 1996 the company gained joint control of two of the largest breweries in Poland, forest god Brewery and Tyskie Brewery, as well as three breweries in Romania and one in Slovakia. In 1994 SAB created a joint venture with Hong Kong-based China Resources Enterprise Limited by early 1998 th is joint venture had gained majority control of five breweries in China. A third area of foreign growth for SAB was in sub-Saharan Africa, where management control was gained of breweries in Botswana, Swaziland, Lesotho, Zambia, Tanzania, Mozambique, Ghana, Kenya, Ethiopia, Zimbabwe, and Uganda during this period.In August 1997 Kahn was appointed chief executive of the South African police service, nice the first civilian to hold the post. The outspoken Kahn, who had been vocal in calling for the rapid liberalization of the economy and for a restoration of law and order, was made amenable for cracking down on a national crime epidemic. Taking over as performing chairman of SAB was Cyril Ramaphosa, South Africas most heavy(a) black capitalist and a former militant trade unionist. By this time, South African Breweries was the worlds fourth largest brewer and had a rapidly expanding international brewing empire.The company was now free to unload its noncore businesses in order to co ncentrate more closely on brewing and its other beverage operations. Under Ramaphosa, it did just that. In late 1997 and early 1998 SAB divested its holdings in OK Bazaars, Afcol, and Da Gama Textiles, and announced that Lion Match and Conshu Holdings, a footwear maker, were also apparent to be jettisoned. These divestments were not proceeding quickly enough for some observers, but SAB had already managed to strengthen its overall position in the face of the continued threat of the breakup of its domestic beer monopoly.Selling off noncore assets was freeing up capital for additional investment in foreign breweries, which would further mitigate the impact of any government intervention. Principal Subsidiaries Southern Associated Maltsters (Pty. ) Ltd. SAB Hop Farms (Pty. ) Ltd. SAB International Holdings Inc. SAB International (Africa) B. V. (Netherlands) Botswana Breweries (Pty. ) Ltd. (40%) Kgalagadi Breweries (Pty. ) Ltd. (Botswana 40%) Swaziland Brewers (Pty. ) Ltd. (60%) Les otho Brewing Company (Pty. ) Ltd. (39%) Tanzania Breweries Ltd.(46%) Cervejas de Mozambique Limitada (65%) Zambian Breweries Plc (45%) Nile Breweries Limited (Uganda 40%) SAB International (Europe) B. V. (Netherlands) Dreher Breweries (Hungary 85%) lecher Browary Wielkopolski S. A. (Poland 32%) SC Vulturul S. A. (Romania 70%) Compania Cervecera de fag endarias S. A. (Spain 51%) SC Pitber S. A. (Romania 81%) SC Ursus S. A. (Romania 73%) Browary Tyskie Gorny Slask S. A. (Poland 45%) SAB International (Asia) B. V. (Netherlands) China Resources Enterprise Beverages Ltd. (49%) China Resources Shenyang chip Beer Co. Ltd.(China 44%) China Resources Dalian Brewery Co. Ltd. (49%) Shenzhen Cest Bon Food and Drink Co. Ltd. (China 33%) China Resources (Jilin) Brewery Co. Ltd. (90%) Delta Corporation Ltd. (Zimbabwe 23%) Seychelles Breweries Ltd. (20%) Accra Breweries Limited (Ghana 50. 5%) Amalgamated Beverage Industries Ltd. (68%) Coca-Cola Canners (Pty. ) Ltd. (24%) Can Vendors (Pty. ) Ltd. Appletiser South Africa (Pty. ) Ltd. Appletiser Pure Fruit Juices (Pty. ) Ltd. Ceres Fruit Juices (Pty. ) Ltd. (35%) Valaqua (Pty. ) Ltd. Associated Fruit Processors (Pty. ) Ltd. (50%) Traditional Beer Investments (Pty.) Ltd. Distillers Corporation (SA) Ltd. (30%) Stellenbosch Farmers Winery Group Ltd. (30%) Edgars Stores Ltd. (65%) Amalgamated Retail Ltd. (Amrel) (68%) Southern Sun Holdings Ltd. Plate Glass and Shatterprufe Industries Ltd. (68%) Da Gama Textile Company Ltd. (61%) The Lion Match Company Ltd. (71%) Conshu Holdings Ltd. (67%) International Expansion in the Post-Apartheid Era The dismantling of apartheid finally began in 1990, with the unbanning of opposition political parties, including the African National Congress (ANC), and the release of political prisoners, including Nelson Mandela.Major political changes rapidly followed. In 1991 the remaining apartheid laws were repealed. In 1992, an all-white referendum approved a new constitution that would lead to event ual free elections. Finally, in 1994, the first nationwide free elections were held and were won by the ANC, with Mandela elected president. SABacting largely out of self-interest given that 85 percent of the beer in South Africa was purchased by blackswas well out in front of the political changes as it had begun to hire blacks in the early 1980s.By 1985, 28 percent of salaried employees were black, a figure that rose to 48 percent by 1994. Nevertheless, the threat of a government-forced breakup of SABs beer monopoly hung over the company following the end of apartheid. Partly in response to this threat, and partly in response to the loosening of laws regarding foreign investment, the Kahn-led South African Breweries aggressively expanded outside its home country starting in 1993. That year, SAB spent $50 million for an 80 percent stake in Hungarys largest brewer, Dreher Breweries, the first of a series of moves into the emerging markets of central Europe.From 1995 to 1997 the comp any gained joint control of two of the largest breweries in Poland, Lech Brewery and Tyskie Brewery, as well as three breweries in Romania and one in Slovakia. In 1994 SAB created a joint venture with Hong Kong-based China Resources Enterprise Limited by early 1998 this joint venture had gained majority control of five breweries in China. A third area of foreign growth for SAB was in sub-Saharan Africa, where management control was gained of breweries in Botswana, Swaziland, Lesotho, Zambia, Tanzania, Mozambique, Ghana, Kenya, Ethiopia, Zimbabwe, and Uganda during this period.In August 1997 Kahn was appointed chief executive of the South African police service, becoming the first civilian to hold the post. The outspoken Kahn, who had been vocal in calling for the rapid liberalization of the economy and for a restoration of law and order, was made responsible for cracking down on a national crime epidemic. Taking over as acting chairman of SAB was Cyril Ramaphosa, South Africas most prominent black capitalist and a former militant trade unionist.By this time, South African Breweries was the worlds fourth largest brewer and had a rapidly expanding international brewing empire. The company was now free to unload its noncore businesses in order to concentrate more closely on brewing and its other beverage operations. Under Ramaphosa, it did just that. From late 1997 through early 1999 SAB divested its holdings in OK Bazaars, Afcol, Da Gama Textiles, Edgars, Lion Match, and Conshu Holdings, a footwear maker. With the mid-1999 sale of Plate Glass, SAB had trimmed its holdings down to beer, soft drinks, wine and liquor, and hotels and gaming.The year 1999 was a pivotal year in SABs history for a host of other reasons as well. Seeking access to capital markets better endowed that those at home, the company in early 1999 shifted its headquarters back to Londonreincorporating itself as South African Breweries plcand moved its primary stock exchange listing from Johannes burg to London, retaining the former as a secondary listing. As part of its London listing, it raised ? 300 million to fund further international expansion. There were also changes on the management front.Kahn returned to the chairmanship, his two-and-a-half-year stint at the police service complete Ramaphosa remained on the board as a director. In addition, Graham Mackey, who had served as group managing director since 1997, was named chief executive in early 1999. On the international front, SAB acquired a stake in a sixth Chinese brewery in 1999 and began producing beer in Russia at Kaluga Brewing Company, which had been acquired the previous year. SABs two Polish breweries, Lech and Tyskie, were merged to form Kompania Piwowarska S. A.The most important brewery trans fulfill that year, however, occurred in October, when SAB acquired from Nomura International plc for $321 million a controlling interest in Pilsner Urquell and Radegast, two brewers in the Czechoslovakian Republic that combined comprised the leader (with a 44 percent market share) in a nation whose citizens consumed more beer per capita than anyone else in the world. The crown jewel of this plenitude was the Pilsner Urquell brand, the most famous Czech beer and the original pilsner, first produced at a brewery in Pilsen in 1842.SAB began laying plans to make Pilsner Urquell the companys flagship brand outside of Africa and to seek entree into developed markets through the export of this brand. Via this acquisition, South African Breweries became the leader of the central European beer market and jumped into third place among orbicular brewing titans. Moving into the Developed World As SABMiller, Early 2000s SABs drive into emerging markets continued in the early 2000s. South African Breweries entered the Indian beer market for the first time in 2000, taking a majority stake in Narang Breweries.Control of two more Indian brewers, Mysore Breweries and Rochees Breweries, was purchased the foll owing year. In April 2001 SAB and the Castel group, the two largest beverage companies on the African continent, entered into a strategic alliance whereby SAB exchanged a 38 percent interest in its African division (excluding South Africa) for a 20 percent stake in Castels beer business. SAB thus gained a share of a wider array of African breweries, and the two partners also agreed to seek investments in new African markets via 50-50 joint ventures.Also in 2001 SAB entered into a new joint venture in China with the Sichuan Blue sword Breweries Group, which owned ten breweries in Sichuan province. SAB now had interests in more than two dozen Chinese breweries and had positioned itself as that nations number two brewer, trailing only Tsingtao. Yet another development in 2001 was that South African Breweries became the first international brewer to enter the Central American market.In November the company acquired a 97 percent stake in Cerveceria Hondurena, S.A. , the sole brewer and the largest bottler of soft drinks (Coca-Cola) in Honduras, from the Dole Food Company Inc. for $537 million. Simultaneously, SAB and the prominent Meza family of El Salvador created a joint venture called BevCo Ltd. to which SAB contributed its new Honduran holding and the Meza family contributed the bulk of its brewing, soft drink, and bottled water businesses in El Salvador. By fiscal 2002, just eight years after its first brewing acquisition outside of Africa, 55 percent of SABs $4.36 billion in revenues were derived from its non-South African operations. This figure would shoot up to an even more remarkable 75 percent just one year later following the companys boldest move yetits coup of Miller Brewing Company, the number two beer maker in the worlds largest beer market, the United States, whose main brands included Miller factual Draft, Miller towering Life, Miller Lite, and Milwaukees Best. Consummated in July 2002, the down consisted of a stock swap with Millers owner, P hilip Morris Companies Inc., that was valued at $3. 48 billion.SAB additionally captive $2 billion in Miller debt. Upon completion of the acquisition, SAB changed its name to SABMiller plc and was now the worlds number two brewer, behind only Anheuser-Busch. Philip Morris (which changed its name to Altria Group, Inc. in 2003) became the biggest SABMiller shareholder with a 36 percent economic interest and 25 percent of the voting rights (the total at which it was capped) and also gained three seats on the SABMiller board. Miller had recorded 2001 revenues of $4.24 billion but had for some time been losing market share to the number one and number three U. S. players, Anheuser-Busch and Adolph Coors Company, respectively. SABMiller took immediate action to try to reverse Millers fortunes, announcing that one of Millers nine U. S. breweries would be closed, and bringing in a new CEO for Miller, Norman Adami, who had headed up the South African brewery operations of SABMiller. In Marc h 2003, in a further pullback from noncore operations, SABMiller moved its entire hotel and gaming interests into a new company called Tsogo Sun Holdings (Pty.)Ltd. , which was to be majority controlled by black empowerment company Tsogo Investments. SABMiller held an initial 49 percent interest in the new company but said that it intended to continue to reduce its hospitality holdings. Despite having just completed the Miller acquisition, the company did not shy away from making additional purchases and deals. Early in 2003 Browar Dojlidy, a brewer in northeastern Poland, was acquired for $38 million. In June SABMiller made its first major investment in Western Europe, buying a 60 percent stake in Birra Peroni S.p. A. , the number two brewing company in Italy, for EUR 246 million ($279 million).Later in 2003 Peroni ended its licensed brewing and selling of the Budweiser brand in Italy and instead started import sales of Miller Genuine Draft. Similar synergies between SABMillers inc reasingly global operations were being implemented, such as the launch of Pilsner Urquell and Miller Genuine Draft in South Africa in early 2003 and the introduction of Miller Genuine Draft into several more European countries, including Russia, Romania, the Czech Republic, and Poland.Over in Asia, SABMiller consolidated its operations in India under Mysore Breweries the operations of Mysore were then consolidated with the brewing operations of Shaw Wallace and Company Limited, the second largest brewing group in India, to form a joint venture called Shaw Wallace Breweries Limited, 50 percent owned by Mysore. This deal cost SABMiller $132. 8 million. The firm spent an additional HK$675 million ($87 million) for a 29.6 percent stake in Harbin Group Limited, Chinas fourth largest brewer and the leader in that countrys northeastern region. The SABMiller of the early 21st century, a globally active company with a hasty focus on beveragesmainly beerwas a far different company from the a partheid-era SAB, which was centered largely in South Africa where it had diversified interests. SABM.