CHINA: SABMiller venture enters Harbin

By just-drinks.com editorial team | 7 April 2006

SABMiller's Chinese venture is to build a new brewery in the north-eastern city of Harbin, a stronghold of the brewing giant's global rival Anheuser-Busch.

China Resources Breweries (CRB), in which SABMiller holds a 49% stake, is reportedly planning to invest US$35m behind the project. According to local reports, the brewery will have the capacity to produce around 4.3m hectolitres of beer each year.

A spokesman for SABMiller in London today (7 April) confirmed the plans but declined to comment on how much would be spent on the brewery or its capacity.

He added that the venture was looking to capitalise on growing demand for its flagship brand Snow in the north-east of China.

Yesterday, CRB, which owns 41 breweries in China, reported a 26% rise in beer volumes for 2005. Sales of the Snow brand leapt 47% to almost 15.8m hectolitres - representing 40% of CRB's volumes. The jump in sales propels Snow into the world's top 10 beer brands, according to figures from market analysts Plato Logic.

Sectors: Beer & cider

Companies: SABMiller, Anheuser