SABMiller and Coca-Cola create a new company in Africa
BE SABMiller

If you visit SABMiller’s website you will read:

On 27 November SABMiller, The Coca-Cola Company and Coca-Cola Sabco announced their intention to form Coca-Cola Beverages Africa.

All three companies have agreed to combine the bottling operations of their non-alcoholic beverages business in Southern and East Africa. The new botler, Coca Cola Beverages Africa, will serve 12 countries accounting for approximately 40% of all Coca-Cola beverage volumes in the region.

When you read non-alcoholic beverages, you probably thought that this has nothing to do with beer, right?

And here is the answer: Wrong!

As we mentioned before, there are rumours that AB InBev prepares itself to raise enough money to buy SABMiller. One of the problems that could stop this possible deal is the fact that while AB InBev distributes the products from Pepsico in Latin America, SABMiller has a deal with Coca-Cola to distribute its products in Africa.

With this news from SABMiller, the company will move its soft drink bottling business to a new company, generating two opposite points of view:

The company is preparing itself for the deal with AB InBev by solving this problem with their deals with the two soft drink giants;

Or

This transaction signifies a strengthening of SABMiller’s strategic relationship with The Coca-Cola Company, making it even harder for AB InBev to make an aggressive takeover.

The answer? Only time can tell!!
This deal would merge the two biggest beer companies in the world, with nearly a third of market share, putting the group in a very strong position to run the global beer trade.

What do you think about this move and its consequence to the world beer market?

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