E-Malt.com News article: South Africa: No South African company has made a greater impact on the global stage than SABMiller

Over the past decade, no South African company has made a greater impact on the global stage than South African Breweries, or SABMiller as it is today, Graham Mackay, CEO of SAB Miller, told in an interview to The Sunday Times Business Times Top Brands edition on August 19.

N the early 90's the company had eight South African brands, of which four were linked to Castle.

Seeing the need to break out, the then newly appointed managing director Graham Mackay, set about making SAB into a global group. His first major acquisition was the Czechoslovakian beer Pilsner Urquell. In 1999, he paid a whopping £420m, but it was money well spent. With one acquisition SAB had broken out of Africa. Since then acquisitions have come thick and fast, from Miller in the US to Peroni in Italy, and Snow in China, making SAB Miller the second biggest brewer by volume in the world. Currently it owns no less than 188 brands, and has annual revenues of $18,6 billion.

Mackay himself was originally from the world of systems and IT, and his team of South Africans, now increasingly joined by top executives from the companies acquired, makes a formidable unit. The original team remained together, Chairman Meyer Kahn; Malcolm Wyman as CFO, Norman Adam, who is running the Americas and Andre Parker who runs Africa and Asia.
Although the latter two have just resigned.

- What is the biggest difference you have found marketing globally from your days in South Africa?
- The biggest difference is the intensity and diversity of competition in most of the markets in which we operate. This has provided a steep learning curve for the organization as we endeavoured to lift our capability in marketing to match our competence in “operations” – production, distribution, logistics etc. We have made great headway but the journey is far from over.

- What has been the key (from a marketing perspective) to the success of SAB Miller?
- We have used the proprietary tools and processes of our Marketing Way to support local marketing teams in building well-balanced portfolios in individual markets. Strong local brands complemented by international premium offerings provide a platform for sustained earnings growth.

- How should South African companies raise their game to compete globally?
- I don't think I can give a general answer to that question. For us, a long tradition of global benchmarking was a useful precursor to the real thing.

- What to you is the measure of a successful brand?
- A successful brand is one that enjoys enduring popularity. Brands that subtly evolve to meet the changing needs of new generations of consumers are a wonderful asset to any organization. They generate sustained returns to shareholders, provide a sense of pride and familiarity to employees, are a door opener with any customer, and obviously are a source of delight for their loyal consumers.

- Which brand do you wish you owned and why?
- It's hard to be specific – there are many great brands in many categories. Brands that inspire, brands that have changed the way we live, brands that entertain, brands that make life easier, more interesting and, like ours, more fun. And in a very real sense great brands are ultimately owned by their consumers rather than by marketers or corporations.


22 August, 2007