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SOUTH AFRICAN BREWERIES

Expertise and capacity to bringing new products to the beer market is crucial for international brewers. This factor assumes greater importance for brewers who are (or who wish to become) global marketers of beer. South African Breweries is a top competitor in the beer industry in relation to this key factor.

2. Why is the company expanding internationally? What are the benefits of international expansion? How has its status as a South African company limited its expansion efforts?

South African Breweries has a strong position in emerging markets. South African Breweries is strong in new product development. The beer market is becoming more global in character, which implies that opportunities for acquisition will develop. Beer is increasing in popularity as an alcoholic beverage of choice in relation to wine and liquor, which provides increased growth opportunities.

South African Breweries' market capitalization is lower than other major competitors in the global beer industry because the company's dominant markets are in weak currency areas. The company also has lower levels of access to new capital than is true of other major competitors in the global beer industry because of weakening economic conditions in the company's primary markets.

Major competitors in the global beer industry whose markets are primarily in strong currency areas are in positions of strength in relation to those beer

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