SABMiller plc is “arguably the best positioned” European brewer in China thanks to its 49 percent stake in CR Snow, which has surged to become the biggest brewer by volume and revenue in the country, according to a recent report from Merrill Lynch, Miller Brewing Co. announced December 11, 2006.

Moving forward, the report said, SABMiller is focusing on brand building, particularly behind Snow, which recently became the No. 1 brand in China; driving increased regional scale; and managing price points.

The report maintained a sell rating on Tsingtao - previously the “undisputed leader in the domestic premium beer segment” - saying “intensifying competition is likely to require higher marketing spending to simply defend market share, let alone grow it.”

Anheuser-Busch has a minority ownership stake in Tsingtao. In 2004 it also acquired a stake in Harbin after a bidding war with SABMiller.

ZAO "Obolon" (Kiev) increased its beer production in November 2006 with 15,2% compared with November 2005, or with 0,8 million dl, and reached 6,1 million dl according to Russian beerunion, December 13.

In 2006 the company produced 86,9 million dl of beer, increasing its production with 21,6% or 15,4 dl compared with 2005. The Ukrainian beer market’s capacity has risen with 12,2% and the sales – with 11,4%. Meanwhile, ZAO "Obolon" has brought up the local sales with 25,8%.

January-November ZAO "Obolon" production share constituted 34,8%, with 2,7% higher than in the same period of 2005. Company’s market share has risen to 3,3% and constituted 29,3%.

"Obolon" increased its exports with 10,5% in January-October period and its export share was of 81,5% from total Ukrainian beer exports.

In 2005 the Ukrainian beer production was of 237,970 million dl, with 23% or 44,434 million dl more than in 2004.

The local market capacity is estimated to 145 – 150 million dl per year.

The Ukrainian beer market is controlled by 4 huge companies: "SUN Interbrew Ukraine", "Obolon", "VVN Ukraine" and "Sarmat" brewery group.

Sapporo Holdings Ltd. up 3.3 percent to 726 yen after Merrill Lynch lifted its rating on Japan's third-biggest brewer to buy from neutral and set the target price of 900 yen, Reuters reported December 11.

Merrill Lynch analyst Ritsuko Tsunoda wrote in a note to clients on Friday the brokerage expects Sapporo's earnings to bottom out from the business year ending December 2007, with the medium-term business plan targeting lower fixed costs.

"We anticipate a robust 29 percent increase in (calendar 2007) operating profit, with contribution from the acquisition of Canada-based Sleeman and higher rental income from property development," she said.

The Sapporo Breweries Ltd. unit of Sapporo Holdings said in October it succeeded in its bid to buy up Canadian Sleeman Breweries Ltd., in a deal worth C$300 million ($265 million).