Chinese brewing major Tsingtao is set to diversify its portfolio by acquiring local grain-based winemaker Jimo Yellow Wine for 665m yuan ($92m).
Under the terms of the deal, Tsingtao will purchase 45.45% equity from international trade company Hiking Group and 54.55% from its subsidiary Lujin Group.
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In a stock exchange filing, Tsingtao said the deal “actively expands the cross-industry portfolio of [our] non-beer business, promotes diversified development and brings new development opportunities for the company in the future”.
Jimo Yellow Wine produces huangjiu – a type of rice wine also known as “Chinese yellow wine”, under the Jimo Laojiu brand. The fermented alcoholic drink is brewed with grains including rice, wheat and millet and typically has an abv ranging from 8-20%.
Tsingtao said the acquisition “will further enrich the company’s product line, expand market channels, and provide consumers with more diversified choices”.
It added: “From the peak and off-peak seasons of market sales, Jimo Laojiu and the company’s beer products can form a complementary effect of market sales, build a cross-category product combination with stronger market competitiveness, and open up new growth points while consolidating the market position of the company’s traditional products, and inject new momentum into the company’s development.”
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By GlobalDataThe company’s product range is dominated by beer, including its classic lager, alcohol-free lager and IPA. It also produces a soda range under the Prince brand.
In the first quarter of 2025, Tsingtao reported revenue of 10.44bn yuan, a 2.9% increase year-on-year, with a net profit attributable to shareholders of 1.71bn yuan, up 7.1%.
Meanwhile, Jimo Yellow Wine, with a registered capital of 55m yuan in 2024 and achieved a 13.5% increase in main business operations income, amounting to 166.41m yuan, and a net profit of 30.47m yuan, a 38% increase year-on-year.
Other large alcohol players in China have also recently made moves in yellow wine.
In December, local Rémy Cointreau-backed Dynasty Fine Wines Group announced plans to set up a joint venture in China’s Jiangsu Province to produce yellow wine and Chenpi wine, made from glutinous rice.
Dynasty Fine Wines Group’s partner is Jiu Zhongxian, a company owned by Dongtai Houyao Urban Development Co., an entity controlled by the Dongtai City local municipal government.
A filing on the Hong Kong Stock Exchange at the time said the joint venture could “leverage the respective professional edges of the group and Jiu Zhongxian to achieve further business development of new alcoholic beverages in order to diversify the sources of revenue, enhancing the scale of its business and Dynasty’s brand influence”.
