Partnership-Based International Expansion

"Rembrandt’s overseas investments took on a particular pattern. First, the best possible local partners were found and a new company established. In the initial phase and with the launching, advice and assistance were given from South Africa on an ongoing basis. Rembrandt would revitalise the new acquisition. Through cost-cutting and an emphasis on marketing and advertising the business would take off on its own steam. After the local partners had been trained and empowered, however, the Rembrandt Group moved into the background."

"The 1960s were a period of consolidation as well as expansion of Rupert’s tobacco and cigarette interests. The takeover of Carreras and Rothmans led to expansion in other parts of the world. Using Rothmans as his flagship, he created a stir with his philosophy of industrial partnership in various countries where he embarked on new initiatives. Partnership companies were established on a bilateral basis in Australia and New Zealand, Malaysia, Singapore, Indonesia, Canada, Jamaica, Northern and Southern Rhodesia (now Zambia and Zimbabwe) and Nyassaland (now Malawi) − eventually even beyond the Iron Curtain in Russia and China."

"In 1961 Rupert moved into the former Federation of Northern and Southern Rhodesia and Nyassaland (Zambia, Zimbabwe and Malawi), where he had to operate via Britain because of South African exchange-control regulations. That same year he formed a partnership company in Malaysia. Two years later be bought Sullana in Switzerland and formed a partnership in Ireland, which became the largest factory in that country. In the Netherlands he obtained a share in Schimmelpenninck cigars."

"further component of his partnership policy was the structure of the group: not rigidly hierarchical, but decentralised, with responsibilities where they belong. And, stated Rupert, ‘where we deviated from this, it was to our detriment."