Grolsch

PANKAJ GHEMAWAT

JORDAN MITCHELL

SM – 1529 – E

O – 308 - 029

Grolsch: Growing Globally

In November 2007, SAB Miller, the world´s second largest brewer,1 announced the friendly takeover

of the world’s 51st largest, Royal Grolsch N.V. of the Netherlands, for €816m in cash - 84% more than

Grolsch’s value over the previous month. Nick Fell, SABMiller’s Marketing Director, explained the logic

of the deal:

“[Grolsch is] a fantastic brand. It’s North European, it’s a fantastic product, it’s got

unimpeachable brewing credentials and authenticity and credibility. And it’s a damn good

product. So for anybody interested in developing their premium beer business, this is an

absolute peach of a brand to get hold of… we see huge potential for it in our global footprint,

particularly in markets like Latin America and Africa where we’ve got a strong route to market

but where the premium beer business is still in its infancy.”2

Grolsch had hitherto focused on developed markets, particularly the UK, US, Canada, Australia,

New Zealand and France, in pursuit of its goal of becoming one of the world’s top 10 global beer

brands. Groslch was already the world’s 21st largest global brand, measured by international (nondomestic) volume (see Exhibit 1). International volume had grown to account for slightly over onehalf of total volume and, going forward, seemed to offer much more potential. Drinkers often rated

Grolsch higher than larger brands, including Heineken, the top global brand as well as the leader in

Grolsch’s home market (see Exhibit 2). And Grolsch had started up a state-of-the art brewery in 2004

that could be expanded at little incremental cost.

The acquisition closed and in February 2008, Grolsch became an independent subsidiary of

SABMiller. Rob Snel, head of Grolsch International since 1999 and an employee since 1984, was

named Grolsch’s new CEO shortly thereafter. He had to decide what changes, if any, to recommend

to its global strategy.

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