China: Belgium's Interbrew said on May 20 it struck a pact to distribute its premium Beck's brand in China through its tie-up with Zhujiang brewery. The move is the latest in a spree of deals by foreign brewing giants keen to increase their share of the world's largest beer market by volume. Under the deal, Zhujiang will use its sales and distribution channels to market Beck's throughout China. Interbrew said it will in turn help Zhujiang to explore overseas markets, although it did not say how.

The distribution deal comes as Anheuser-Busch and SABMiller, the world's two largest beer makers, are poised for a battle to take over Harbin Brewery, China's fourth largest.

Interbrew, which is expected to become the world's largest beer maker when its purchase of Brazil's AmBev is completed, owns a 24 % stake in Zhujiang Joint Stock Co.

Zhujiang, which has been Interbrew's partner in China for 20 years, ranks seventh in China's regionally fragmented beer industry, with a market share of 3.6 percent. It has a market share of 50 percent in Guangdong province, one of the richest in China.

Global brewers have been rushing to buy breweries in fast-growing China, where the average person drinks just 19 litres of beer a year, compared with roughly 84 litres in the United States.

21 May, 2004