Suntory has replaced its China beer JVs with a licence agreement

Suntory has replaced its China beer JVs with a licence agreement

Suntory has pulled out of its two Chinese joint ventures with Tsingtao Brewery.

The Japanese firm, which was rumoured earlier this month to have been considering the move, confirmed two weeks ago that it has offloaded its 50% stakes in Suntory Tsingtao Brewery (Shanghai) Co and Tsingtao Brewery Suntory (Shanghai) Sales Co to its partner. Financial details were not disclosed.

“By concluding a new production and sales licence agreement,” the company said, “the Suntory beer brand will continue to be sold as normal - principally in Shanghai and Jiangsu Province - following the transfer of shares.”

Suntory set up its Chinese partnership with Tsingtao in 2012. Late last month, reports claimed the company is considering a “strategic partnership” for its beer brands in the US.