SABMiller BEE deal cartoon

SABMiller BEE deal cartoon

Cheers to SABMiller’s BEE deal

SABMiller, the world’s second largest beer group, this week announced their broad-based Black Economic Empowerment (BBBEE) deal with a difference. Wonkie is glad to see a major South African corporate being smart about their structuring of the transaction.

Many previous large BEE transactions were basically considered to be an additional tax on the company: money the company had to practically give away without any real expectation of return on investment. Typical of many such deals, dividend income from the shares will be used to pay for those shares. A key difference is the way in which these shares will be allocated to employees, the SAB Foundation and an estimated 50,000 licensed shebeen and tavern operators. Full ownership of the shares is expected to pass through within 10 years however the beneficiaries will receive a portion of the dividends from the first year.

The deal comes at a strategic time for SAB. October sees the opening of a competing Heineken brewery in South Africa. The details of the SAB deal will no doubt be structured smartly to ensure stakeholders get maximum leverage in terms of both retailer loyalty and staff retention.


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  1. i may be wrong but to me thi is just another corporate prank to get more people drunk and to sustain their business,what a way to make a killing.

  2. Why don’t we stop drinking!!

  3. how smart of SABMiller,a year ahead of 2010.Yes they are not the official sponsors of the FiFa 2010 and they are trying to advance their agenda(make more profit than Budweiser and Heineken during the tournament)using Bee,I say to Hell with it

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