PANKAJ GHEMAWAT MICHAEL JORDAN MITCHELL
SM – 1529 – COMO TAMBEM O – 308 - 029
Grolsch: Developing Globally
In November 2007, SAB Burns, the world´s second most significant brewer, 1 announced the friendly takeover of the planet's 51st greatest, Royal Grolsch N. Versus. of the Netherlands, for €816m in cash - 84% more than Grolsch's value above the previous month. Nick Chop down, SABMiller's Marketing Director, explained the logic of the offer: "[Grolsch is] a fantastic manufacturer. It's North European, 2 weeks . fantastic product, it's got unimpeachable brewing recommendations and authenticity and trustworthiness. And it's a damn good product. Therefore for anybody considering developing their premium beer business, this is an absolute peach of a manufacturer to get hold of… we see enormous potential for this in our global footprint, specifically in market segments like Latin America and Africa where we've got a strong route to market but the place that the premium beverage business remains to be in its infancy. ”2 Grolsch had hitherto centered on developed market segments, particularly the UK, US, Canada, Australia, Fresh Zealand and France, in search of its target of becoming among the world's top global beer brands. Groslch was already the world's 21st largest global brand, tested by intercontinental ( nondomestic ) volume (see Exhibit 1). Intercontinental volume experienced grown to account for a little bit over onehalf of total volume and, going forward, appeared to offer a lot more potential. Drinkers often scored Grolsch above larger brands, including Heineken, the top global brand and also the leader in Grolsch's home market (see Exhibit 2). And Grolsch acquired started up a state-of-the art brewery in 2004 that could be expanded by little incremental cost. The acquisition closed and in February 2008, Grolsch lager became a completely independent subsidiary of SABMiller. Deceive Snel, mind of Grolsch lager International as 1999 and an employee since 1984, was named Grolsch's new CEO shortly afterwards. He had to decide what changes, if virtually any, to recommend to its global approach.
1 This kind of compares the relative positions of SABMiller with the two other main breweries, InBev and Anheuser-Busch as of the
end of 2006. SABMiller's fiscal year ends in Drive.
2 " Q& A with Chip Fell, Promoting Director, SABMiller, ” SABMiller, www.sabmiller.com. Seen Nov. 40, 2007.
________________________________________________________________________________________________________________ This case was prepared by Teacher Pankaj Ghemawat and Michael jordan Mitchell, Analysis Assistant, while the basis to get class discussion instead of to illustrate either powerful or inadequate handling of the administrative condition. August 2008. Copyright © 2008, IESE. To purchase copies or request agreement to replicate materials, contact IESE POSTING via the web page, www.iesep.com. Alternatively, call +34 932 534 200, send a fernkopie to +34 932 534 343, or perhaps write IESEP, C/ Juan de Alós, 43 - 08034 Barcelona, Spain, or perhaps [email protected] com. No a part of this publication may be produced, stored in a retrieval program, used in a spreadsheet, or transmitted in just about any form or perhaps by any means – electronic, mechanised, photocopying, saving, or otherwise – without the authorization of IESE. Last modified: 10/10/08 you
SM-1529-E Grolsch: Growing Globally
Grolsch followed its background back to a brewery, inside the Dutch city of Groenlo near the The german language border3 that was acquired by Willem Neerfeldt in 1615. By the late 1800s, the brewery had arrive under the charge of Theo L. De Groen. In 1897, he released Grolsch's iconic - and trademarked ceramic swingtop container, which was advertised as easy to open and allowing storage of beer at a later time consumption. Advertising of the Grolsch lager brand started out in 1918. In 1922, this procedure merged which has a brewery in nearby Enschede (see Demonstrate 3 to get a map with the Netherlands), yet Grolsch was retained since the principal company. By the 60s, Grolsch acquired grown by a " regional” brand to become the country's second most well-known, behind Heineken. After the fatality of the mind of the De...