China Information

Tuesday, January 23, 2007

British Beer Company SABMiller Enhanced Their Strength in China

Last week SABMiller, the British beer company successfully acquired three breweries that were originally belong to Australian Lion Nathan through its Chinese JV China Ressources Breweries. The transaction value is estimated of USD154m. These three acquired breweries locate in Yangtze Delta Area. After the acquisition, SABMiller will hold 49% shares and Ressources Group, 51%.This acquisition demonstrates the strategic concept of SABMiller Company that they intend to continuously develop their businesses around Shanghai. The forecasted annual beer consumption in this market reaches 16m liters and the beer price is higher than the average price in China. British SABMiller, the third biggest brewery company in the world and with annual beer volume reaches 137m liter, entered China in 1994. Its JV CRB is the second biggest brewery producing enterprise in China with annual production volume of 5.58m liter and 12% market share. As China has become the world second largest beer consumption country, the huge market has attracted concern from global beer giants and meanwhile, the consumption volumes in both Europe and America have appeared declining tendency.

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