E-Malt.com News article: Canada & China: Canada’s Russell Breweries launching a test brewery and brewpub restaurant in Hefei, China this summer

Further to the agreement signed with FVI Capital Inc. ("FVI") in October 2012, Russell Breweries Inc. ("RBI") announced on May, 2 that a test brewery and brewpub restaurant is scheduled to open this summer in Hefei, China. Hefei is the largest city of Anhui Province of Eastern China with a population of 5.7 million. It is a booming industrial city that has had very strong economic growth and is open to international investment.

"Our partners in China have broken ground on building its test brewery and adjoining brewpub-style restaurant in the city of Hefei," said Brian Harris, CEO Russell Breweries Inc. "Scheduled to open this summer, the brewery will be the first in the region to offer high-end, small-batch beers to North American craft brewing standards."

On October 9th, 2012, Russell Breweries Inc. signed a definitive agreement with FVI Capital Inc. for a non-exclusive technology and trade mark license agreement to import, produce, package, use, market, sell and distribute Russell brands in China, Hong Kong and Taiwan. Under the terms of the agreement, a new Company named Russell Breweries China Inc. ("RBCI") has been established and Russell Breweries Inc. has subscribed for a 20% equity position. FVI Capital Inc. is a Vancouver based private equity company and a member of the Anyi Capital Group in Shanghai, China.

"The principal terms of the agreement included an initial up-front licensing fee and ongoing royalties based on volume of beer produced and sold in China," explained Brian Harris. "We look forward to the opening of this test brewery and to continuing to build on the relationship with FVI Capital and Russell Breweries China to optimize opportunities in China and North America."

Russell Breweries Inc. is leading Western Canadian brewer. It brews, markets, sells and distributes a diverse portfolio of award-winning beers that are produced by its wholly-owned regional breweries: Russell Brewing Company in British Columbia and Fort Garry Brewing Company in Manitoba. Russell Breweries Inc. is publicly listed on the TSX Venture Exchange.

08 May, 2013