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SAB re-entry.
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Njung'e
#1 Posted : Tuesday, December 15, 2009 12:14:10 PM
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What should i make of EABL?
Nothing great was ever achieved without enthusiasm.
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JeanLucPiccard
#2 Posted : Tuesday, December 15, 2009 12:26:12 PM
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Very tricky. Depends on the arsenal that SAB has come in with. Will be something to watch in the next few months before deciding.
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KulaRaha
#3 Posted : Tuesday, December 15, 2009 12:28:02 PM
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Yuck, Castle....they better come with something thats drinkable...
Business opportunities are like buses,there's always another one coming
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Much Know
#4 Posted : Tuesday, December 15, 2009 12:40:06 PM
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Castle have done their market research. I am sure they have observed EABL weaknesses they will capitalize on, in any case they are quite a number. This is not the Kenya Breweries they found here in the nineties. Its a much weaker, much more disorganized latent institution which has not introduced a single innovation(including new packaging technologies) since castle left. Their beers are ever so inconsistent and they are out of touch with consumers. Their profits are cleverly being repatriated as with all "foreign owned company", the company has lost momentum in growth and there is no longer a Kenyan attachment to EABL. EABL will suffer this coming five years no doubt. It is now way down in the list of respected companies.
A New Kenya
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FundamentAli
#5 Posted : Tuesday, December 15, 2009 1:01:32 PM
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Buy Scangroup.
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Gordon Gekko
#6 Posted : Tuesday, December 15, 2009 9:30:56 PM
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@kularaha, if their stuff is so undrinkabe, how did they get to be one of the top brewers in THE WORLD?
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VituVingiSana
#7 Posted : Tuesday, December 15, 2009 10:18:14 PM
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GG: Diageo is also huge. SAB was smart about one thing. They started acquiring local firms all over.

In Kenya, SAB had to introduce new brands. Mostly a failure. Kenyans don't even change dirty, stinky politicians... how will they change their beer?

In other markets they bought local firms with local brands.
In USA they bought Miller, hence the SABMiller.
Same in China.
In Zimbabwe, they own a chunk of Delta.
In Ghana, they own Accra Breweries.
In Zambia, they own Zambia Breweries & National Breweries.
in Tanzania, they own Tanzania Breweries.

The key feature is that these 'local' breweries come with established LOCAL brands. Also they keep the name of the country/city/local e.g. Zambia, Tanzania, Accra instead of SAB...

Wazuarians/SKerians in USA... Do you get castle or any other SAB brands?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Njung'e
#8 Posted : Wednesday, December 16, 2009 5:10:56 AM
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@Vitu,
Suppose their entry point is Keroche?.....Just thinking.
Nothing great was ever achieved without enthusiasm.
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muganda
#9 Posted : Wednesday, December 16, 2009 5:19:25 AM
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@Njung'e that would be the smart thing to do. EABL is a dominant rival at least in Kenya. Isn't that what EABL has also done with the Serengeti chap anyway?
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KulaRaha
#10 Posted : Wednesday, December 16, 2009 5:24:19 AM
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Gordon Gekko wrote:
@kularaha, if their stuff is so undrinkabe, how did they get to be one of the top brewers in THE WORLD?


I dont think they got where they are selling yucky Castle worldwide...they have a diversified portfolio of drinks...

Note Miller was a huge US based group...which had such beers as Miller, Grolsch, Peroni in their stable.

Castle is the worst tasting beer Ive ever had, and nothing can change that opinion! YUCK!

(except Milk Stout.....yummy!!!)
Business opportunities are like buses,there's always another one coming
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McReggae
#11 Posted : Wednesday, December 16, 2009 6:01:02 AM
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Will it mean cheaper beer prices.....good for me!!!!
..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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Kaigangio
#12 Posted : Wednesday, December 16, 2009 7:00:18 AM
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SAB also owns Kgalagadi Breweries in Botswana and the Namibia Breweries in Windhoek.

the way to go for SAB is to enter into partnership with local EABL competition and hold majority shares, then they rebrand or maintain the same beers but with minimal alterations and friendly prices...

...besides, the presence of a safe alone does not signify that there is money inside...
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KulaRaha
#13 Posted : Wednesday, December 16, 2009 7:23:55 AM
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McReggae wrote:
Will it mean cheaper beer prices.....good for me!!!!


Cheaper beer and more choice, amen to that!
Business opportunities are like buses,there's always another one coming
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the deal
#14 Posted : Wednesday, December 16, 2009 7:26:41 AM
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Joined: 9/25/2009
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Location: Windhoek/Nairobbery
SAB does not owner Namibia Breweries, its owned by the List and Olthaver family...Diageo(also major shareholders of EABL) have a stake in NamBrew...its only last year when the Nam Govmnt allowed SAB to build a Ksh 3 Billion plant in Okahandja(70 km away from Windhoek) but overall said castle is no threat to Windhoek Lager and their Heinekken brands...the 2 best beers in the world.
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KulaRaha
#15 Posted : Wednesday, December 16, 2009 7:34:29 AM
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Windhoek Lager......YUMMY!!!!!!!!!!!!!!!!!!!!!!!
Business opportunities are like buses,there's always another one coming
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Jaina
#16 Posted : Wednesday, December 16, 2009 8:46:48 AM
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From what i know about the peculiar habbits of kenyans, EABL will carry the day AGAIN. EABL realised that even before MJ and they have capitalised on it to gain and maintain their market share. Tusker is their brand and any threat to tusker is a threat to their existence.

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Burning Spear
#17 Posted : Wednesday, December 16, 2009 10:28:19 AM
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SABMiller is the 4th largest brewery in the world and it has a well built financial muscle.

Their retreat to test the kenya market this 2010 will be a success according to me.Its in no doubt that they have done adequate research and they have learnt on the previous mistake they did under the cunning hands of Diageo.

Assuming they enter the market through keroche by 50+1 %,this will be the last death nail they will hammer to EABL.Keroche is Struggling to pay a Barclays loan of >1billion and SABMiller entry would be a god send blessing.
As a social sipper of Tusker and GK in Kenya,and an occassional sipper of Serengeti premium courtesy of Tanzania Breweries (SABMiller),I can swear that there is no comparison and tuskers poor quality will be put to test and thrown into dustbins.

This means that the alredy dwiddling EABL profit will head south,the share price will fall and will no longer be attractive.
SABMiller.....come back and we will support you!!

my 2 cents!!!Applause
"You're not supposed to be so blind with patriotism that you can't face reality. Wrong is wrong, no matter who says it". Malcolm X
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VituVingiSana
#18 Posted : Wednesday, December 16, 2009 12:10:41 PM
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@Burning Spear - Serengeti is NOT owned by Tz Brew (SABMiller) but Serengeti Breweries (the chaps EABL wants to buy)
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Wakanyugi
#19 Posted : Wednesday, December 16, 2009 3:23:44 PM
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I smell something in this deal and it is not fish.

My suspicion is that this sudden flurry of activity from SAB Miller is an empty show.

Note:
a) The Kenya market is an insignificant blip on SAB millers radar.
b) There are no strategic gains to be made in taking on Diageo in a market with such slim pickings, which is what they would be doing.
c) None of the reasons why SAB left in the first place have really changed.

Conclusion?: This move is a feint, meant to scare off EABL from TZ.

As soon as EABL gets over their lust for Serengeti you will suddenly hear no more of a SAB return to Kenya.
"The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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Njung'e
#20 Posted : Thursday, December 17, 2009 5:25:15 AM
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@Wakanyugi,
I beg to differ.The Kenyan market is not an insignificant blip as such and i quote SABmiller head of media relations,"Kenya is specifically an exciting beer market that one has to think of in future,”.....The entry of SABmiller into Kenya may not be as direct,but as indicated,i believe they want to start by locking out EABL from regional markets by establishing plants in Angola,TZ and Mozambique.As it is,their 3B Juba plant started operations in July while 1.2B is earmarked for a malt plant in Jinja (Ngai!...Nile special...).

@Kulahepi,

Wewe....Stop salivatingsmile
Nothing great was ever achieved without enthusiasm.
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