USA & China: Anheuser-Busch wants more acquisitions in China

America’s Anheuser-Busch could make more acquisitions in China to tap a market that's growing as much as seven times faster than the US, according to the head of the company's international operations, China Daily reported on September 7.

Anheuser-Busch, the world's biggest brewer, in April tripled its stake in Tsingtao Brewery Co Ltd, China's biggest beer maker, to 27 %. China's beer market will expand by as much as 5 % a year until 2008, compared with growth of 0.7 % for the US and 2.5 % for Europe through 2005, beverage research firm Canadian estimates.

Each of China's 1.3 billion people drinks an average of 18 litres of beer a year, compared with as much as 80 litres each in Europe. "Obviously we'd like them to drink as much per capita as they do in Germany," Burrows said. Beer consumption in South Korea and Japan stands at about 35 litres per person, according to Burrows. "If it reached that, the market would double in size."

In 2004 Anheuser-Busch beat back London-based SAB Miller to acquire Harbin Brewery Group Ltd, China's oldest and fourth-largest brewer, in a transaction valued at HK$3.5 billion (US$444 million). The American brewer first entered China in 1993, taking a minority stake in Tsingtao, and now has investments worth more than US$1.4 billion in China, according to a company statement. Tsingtao had 12.8 % of the Chinese market last year.

Other beverage companies including Coca-Cola Co, the world's largest soft-drink maker, want as well to tap an increase in demand in China as sales growth of its main soda brands slows in the US.

09 September, 2005