E-Malt.com News article: China: Tsingtao predicts 20% growth

Tsingtao Brewery Co, part-owned by Anheuser-Busch Cos, said its sales will grow by at least 20 percent annually in the next five years as it increases spending to build new plants, Bloomberg reported August 13.

The biggest Chinese brewer will focus on the construction of additional production lines in the next three to five years to sustain its revenue growth, chairman Li Guirong said in an interview yesterday in the Chinese port city of Qingdao.

Rising affluence in the world's biggest beer market spurred a 16 percent surge in sales last year, with consumption forecast by Anheuser-Busch to double within a decade. Tsingtao Brewery, responsible for more than half of China's beer exports, is increasing marketing of premium products, including a low-alcohol brand, through sponsoring next year's Beijing Olympic Games.

The company will add additional production capacity of more than 1 million tonnes by the start of next year by building new plants in Shandong, Sichuan and Shaanxi, Li said.

"We will depend primarily on the domestic market for our development due to the strong local demands," Li said.

Tsingtao Brewery now has 50 plants in 20 provinces across China. The company produced 4.5 million tonnes of beer last year, Li said.

Tsingtao aims to increase sales of its profitable Tsingtao brand by 17 percent this year.
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About Tsingtao Brewery

Germans established Qingdao Brewery in 1903, producing beers for their countrymen and other westerners. In the late of 1990s, under a strategy called "Great Famous Brand" and asset re-organization, Tsingtao Beer made a splash by consolidating Qingdao Laoshan Beer, Shanghai Carlsberg Beer, Langfang Beer, and Beijing Five-Star Beer. In 1993, Tsingtao Brewery was formed and opened to the international capital market. The domestic company became the first to be listed in two markets at the same time. Funds raised have formed a solid basis for rapid development.


15 August, 2007