China's biggest beer company, Tsingtao Brewery Co., is in talks with unidentified Southeast Asian brewer to make its trademark beverage outside China for the first time, according to the company's president, Chinese media reported. The deal is aimed at brewing Tsingtao brand beer to sell in Singapore, Malaysia, Thailand and other South-East Asian nations. Under the proposal deal, the Southeast Asian brewer will produce Tsingtao beer in exchange for a cut of the profit.

Tsingtao is also negotiating with South African and European investors to expand in the South African beer market, the Tsingtao president, Jin Zhiguo, said Saturday in a Beijing interview. "We like to enter markets which have been under a monopoly," Jin said. "Their consumers will look for new tastes, giving us a great opportunity."

Tsingtao's expansion plans have been helped by China's entry in the World Trade Organization 15 months ago, which required the country to dismantle trade barriers. Sales outside China accounted for only 2% of Tsingtao's sales last year.

Tsingtao's main rivals in Southeast Asia are Asia Pacific Breweries Ltd., the maker of Tiger beer, and Carlsberg A/S, Jin said. Asia Pacific Breweries used only 80% of its production capacity in the financial year ended last Sept. 30.

11 March, 2003