E-Malt.com News article: 319

The China's largest brewer, Tsingtao Brewery Company, and the world's largest brewer Anheuser-Busch from US, declared yesterday about their plan to merge into a strategic alliance. The terms of partnership are in the process of completion and will be the subject of Chinese government approval. However, the two companies have already signed an exclusive agreement.

Tsingtao has an 11% market share in Chinese area with its Tsingtao brand, the number-one brand in China. Now, the Tsingtao brand beer is sold in over 40 countries and regions abroad. Tsingtao's export volume totals more than 50% of the whole Chinese beer export.

The Chinese beer market is the second largest in the world with about 220 million hl and has been rising 6% per annum.

The president and CEO of Anheuser-Busch Cos., Inc., Patrick Stokes said: "China is a strategically important global beer market, and we are committed to playing a significant role there. Tsingtao is a well-managed company, and through our planned alliance we are committed to support Tsingtao in maintaining its industry leadership, expand the Tsingtao brand, and learn from the market leader."

The chairman of Tsingtao, Li Guirong commented: "With China's entry to the WTO, the global economic integration process will be accelerated greatly. The strategic alliance between Tsingtao and Anheuser-Busch will join the strengths of two brewing giants and realise the benefits of sharing both sides' resources in the areas of management, technology and capital, thereby improving the management effectiveness, profitability and core competitiveness of Tsingtao."

This is not the first entering of Anheuser-Bush into the Chinese beer market. The company already owns 98% of the Budweiser Wuhan International Brewing Co. in Wuhan, China, where its Budweiser brand is produced. This brand is the leading premium international beer sold in China.


31 July, 2002