OBITUARY – GRAHAM MACKAY

GRAHAM MACKAY 64 – THE MAN WHO TRANSFORMED SABMiller from a local South African business group into an $82 billion dollar brewing giant, has passed away.  When Mackay started at SAB in 1978 during the apartheid era, sanctions were in place, foreign-exchange controls prevented international expansion and the brewer’s portfolio ranged from food to property.  But the release of Nelson Mandela in 199O and the lifting of sanctions on South Africa brought with it the chance to build a global business.  SAB was one of the first South African companies to raise capital aggressively and expand beyond the country’s borders.  Unable to compete head on with established rivals such as Heineken and Carlsberg in developed markets, Mackay targeted Africa and took advantage of the fall of the Berlin Wall to buy comparatively cheaper assets in the former Soviet bloc.  But it was 1999 that proved pivotal for SAB.  Seeking access to a deeper pool of capital, Mackay shifted its primary listing from Johannesburg to London.  This energy was focused largely on more mergers and acquisitions.  SAB bought Pilsner Urquell and Radegast in the Czech Republic.  Over the next few years, SAB moved into India and Central America.  The largest deal came when Mackay paid $5.6 billion for US-based Miller Brewing in 2OO2, transforming SAB into a global giant with a strong presence in the world’s most competitive market – the US – and a portfolio of brands including Grolsch, Miller Lite, Peroni, and Pilsner Urquell.  Less than a decade after striking its first brewing acquisition outside of Africa, 55 percent of SAB’s revenues were derived from its non-South African operations.  Mackay was appointed group managing director in 1997 and chief executive of SAB on its listing on the LSE in 1999.  In July 2O12 he was appointed executive chairman of SABMiller.  For a man who built up the world’s second-largest brewer through more than 3O deals, Mackay cut an understated figure and was widely known by his peers for his courtly manner.  Those who knew him describe him as cerebral, inspirational and thoughtful, an “old-school gentleman” who preferred one-on-one talks to mass presentations.  Mackay stepped down as chief executive of the company following surgery for a brain tumor in April.  He briefly returned as non-executive chairman in September.