A difference of opinion between Heineken-APB (China) and Nantong Fuhao Alcohol Industry (NAC) has resulted in the company selling its stake in Jiangsu DaFuHao Breweries to Nantong.

HAPBC, an associated company of Asia Pacific Breweries, confirmed today (6 June) that it will sell its 49% stake in Jiangsu DaFuHao to NAC for around US$38m. The divestment will result in NAC taking total control of Jiangsu DaFuHao.

"Both HAPBC and NAC have agreed to terminate the partnership amicably as they hold differing views on the future development plans of DFH for the Jiangsu province," APB said. "While HAPBC remains focused on the beer business, NAC has diversified into other alcoholic beverages."

Lee Meng Tat, APB's regional director for China, said that the sale did not mark an exit strategy for HAPBC in Jiangsu. "HAPBC remains committed to the Jiangsu province and the China market," Lee said. "Moving forward, HAPBC plans to further boost its brand presence and distribution which it has independently established for brands like Tiger, Heineken and Reeb in the 23m hectolitre Jiangsu market."

Last month, APB, which is jointly-owned by Heineken and Fraser & Neave, posted first-half results which included a loss of S$7.3m (US$5.3m) from China, caused by intense competition, increases in raw material prices and losses at Kingway Brewery Holdings in which HAPBC holds a 21% stake.