GROLSCH GROWING GLOBALLY

Grolsch Growing Globally



Grolsch Growing Globally

Grolsch being globalized

Grolsch beer started in 1615 in Groenlo. It was brewed by William Neerfeldt. The name Grolsch is the adjective of Grol, the old name of Groenlo. The brewery was officially called Grolsh Brewery. The company from 1984 to 2008 became a publicly traded company. A large proportion of the shares were owned by the family De Groen. This family business has since 1968 worked on local brewery into a multinational company. In 1995, the brewery got the title “Royal”. Until 2004, it was Grolsch Groenlo and brewed in Enscheda. Since 2004, both branches closed and, the modern brewing location Usselo was placed on the border with Boekelo. In November 2007, the origin of South African brewer SABMiller took over bid for Grolsch. In 2007, SABMiller decided to overtake the world's 51st largest beer brand, Grolsch for €816m. SABMiller was the 2nd largest brewer of the world. The brewer was ready to Grolsch for 816 million Euros. That was 48.25 Euros per share and the bid is about 84 percent above the market price. The Green family, the Board and the Supervisory Board of Grolsch agreed. In 2009, the brewery by the Green family sold to SABMiller and Grolsch is now 1 of the 135 breweries under this flag (Ghemwat 2011, 1).

According to the marketing director of SABMiller, Nick Fell, Grolsch is a very good brand with a huge potential of being global. Thereafter, Grolsch focused on being global in countries like Canada, UK, Australia, France, New Zealand and US. It aimed to be in the top ten brands of the world. According to the international market, Grolsch came on the 21st ranking. The drinkers routinely rated Grolsch as the top ranking even more than the Heineken which was the global leader. SABMiller completes its acquisition in 2008 where the head of Grolsch, Rob Snel was made CEO. Before the takeover by SABMilelr, Grolsch was intending to grow faster than its significant market. It also aimed to achieve a higher return on investment than the average cost of capital. It achieved an increase in the earnings, dividends per share and managed to maintain a healthy balance sheet.

Grolsch is active in various markets. Grolsch produces many types of beers. These products are sold at local, national and international scale. The most relevant market for Grolsch national market because this market is the largest sales get created. The international market is also important because in recent years become the market has grown. Grolsch distributes to many countries like USA, UK, Canada, Portugal.

Grolsch's international strategy

Grolsch started brewery and proceeded to the swingtop bottle. In 1960s, Grolsch became the second most popular brand in its country after Heineken. In 1984, it was decided to place Grolsch on Amsterdam Stock Exchange. Under Dutch Law, it started a two-tier company and two subsidiaries. Grolsch was also conducting its business outside Netherland, Ireland and UK. Ireland and UK were handling the brewing of Grolsch, under a ...