E-Malt.com News article: 2693

Hong Kong: A small Shandong-based beer maker, Jinan Brewery, said on May 24 it is in talks with international beer makers including Anheuser-Busch over a possible partnership, including a stake sale. Jinan Brewery, told reporters it hoped to team up with foreign firms and has held talks with Budweiser-brewer Anheuser-Busch, the world's largest beer maker. "If the talks proceed, we won't rule out selling all our controlling shares," said the vice mayor of Jinan city, Wang Tianyi. Jinan Brewery has annual production of 200,000 tonnes

The city government holds a 50 % stake, also called state-owned shares, in Jinan Brewery. Jinan Brewery, which makes Bao Tu Quan beer in eastern Shandong province, posted a profit of roughly 30 million yuan (US$3.6 million) and sales of 500 million yuan in 2003, the firm said.

China which is the biggest beer market in the world by volume, is expected to grow at up to 10 % a year in the next few years. Foreign firms are scrambling to expand their market share in the fast-growing market via acquisitions and partner with Chinese beer makers, according to Reuters.

Anheuser-Busch holds a nearly 10 percent stake in China's biggest beer maker Tsingtao Brewery and will boost it to 27% over the next few years. (US$=8.28 yuan)


26 May, 2004