China: Carlsberg International AS and Tibet Galaxy Science & Technology Development Co Ltd have formally inaugurated their brewing venture in the Tibetan capital of Lhasa, the China Securities Journal said on September 1. The 50-50 venture, Tibet Lhasa Brewery Co Ltd, is capitalized at 45.91 usd with annual production capacity of 150,000 tons of beer, the paper said.

Denmark's Carlsberg entered China in the early 1980s and currently operates two partially-owned brewing units and three wholly-funded units in southwestern and eastern China, according to Reuters.

Carlsberg has reportedly secured about half of the beer market in the southwestern province of Yunnan and the Tibet region, both of them popular tourist destinations. It has combined output of around 500,000-600,000 tons a year at its China operations.

Driven by sluggish beer demand in their home countries and huge growth potential in the Chinese market, many foreign brewers have entered China by acquiring local brands.

Global beer giant Interbrew has spent more than 600 mln usd so far buying stakes in local brewers and now holds nine pct of the mainland beer market. Other foreign brewers holding stakes in Chinese breweries include SABMiller Plc, Anheuser-Busch Inc and Scottish & Newcastle Plc.

06 September, 2004