There are striking similarities between the colonial powers of past and contemporary beer conglomerates. For years, there has been an uneasy quiet in the world beer markets as brewers have carved out territories and regions for themselves, often finding themselves in close proximity with competitors.
SABMiller also set its sights on acquiring Brazilian brewer Schincariol, the second- largest brewer in the country behind AB-InBev, with 15% of the market (EuroMontior). Those plans were dashed by the recent acquisition of Schincariol by Japanese brewer Kirin for $2.6 Billion, some 25% above the rumored bid from SABMiller. This is a lost opportunity for SABMiller in gaining a foothold using its traditional method of entry. A successful acquisition of Schincariol would have raised its worldwide volume by an estimated 2 billion liters. A subsequent increase in its market share with Schincariol’s established name in the third largest beer market could have narrowed the gap with AB-InBev in the Brazilian market.
[This article has been reproduced with permission from Knowledge Network, the online thought leadership platform for Thunderbird School of Global Management https://thunderbird.asu.edu/knowledge-network/]