Central Plains Industry, Snow Beer, settled in Henan CRB (Zhumadian) Laid the Foundation Stone for the 200-Thousand-Kiloliter Annual Production Project (Translation)
2 December 2010
On the morning of November 26, 2010, CRB (Zhumadian) laid the foundation stone for its 200-thousand-kiloliter annual production project. The governors of Zhumadian Municipal People's Congress, Municipal Political Consultative Conference, the municipal government and station city secretary, mayors and principle leaders of other cities and districts and CRB Anhui region general manager Hui Xu all attended the ceremony. People in charge of Zhumadian City applauded the establishing of the Snow Beer company in Zhumadian during the ceremony. The principle leaders of the city stated that Snow Beer's strategy of settling in the Central Plains has reflected its precise insight for the Henan market.
CRB (Zhumadian) Co., Ltd. is CRB's (China) first investment project in Henan Province, with a total investment of 320 million yuan, covering an area of 200 acres. The project is based on Zhumadian Yuequan Beer Limited, through the expansion of technical innovation and a series of new works in beer production technology and equipment to attain international advanced production technology. As one of the advanced beer production factories, after the new plant is rebuilt, it will adhere to clean production, green low-carbon energy and environmental protection concepts. Energy conservation, with environmental protection facilities, has reached national standards, which fully embodies the high degree of social responsibility in CRB. New plant capacity will reach 20 million liters, and the green area of the factory is about 20% of the total area, with environmentally-friendly, energy-saving ecotourism industry in operation.
After putting CRB (Zhumadian) Co., Ltd into operation, it will healthily promote the development of the beer industry in Henan Province and meet various consumer demands in the province. The local consumers will not only enjoy the high-quality, home-brewed Snow Beer, but also experience the passion and vigor from Snow Beer and feel CRB's advanced ideas and entrepreneurial spirit. The company will adhere to a "hard-working, professional, confident, energy, and innovative" business philosophy with first-class products and service to society. It is dedicated to contributing to the promotion of the beer industry in Henan and the harmony of Zhumadian.
Since 2005, CRB has been the number-one beer brand in China for five consecutive years. In 2009, CRB achieved 837 million liters of production sales volume. One of the sub-brands-Snow Beer -was the number-one single-brand seller in the country for 2008. Currently, the CRB brand value has reached 37.726 billion yuan.
Industry experts believe that the Snow brand has brought its national leading operations, technology advantages and first-class quality management and market development experience to Central Plains, which will effectively bring the Henan beer industry out of its difficulties. The entering of CRB in Zhumadian will become the developmental milestone of the Henan beer industry.
About CRB (China) Co., Ltd.
CRB (China) Co., Ltd., established in 1994, is a professional production and management beer company of the country. It is headquartered in Beijing, China. Its shareholders are China Resources Enterprise, Limited and the world's second largest beer group, SABMiller. CRB is currently operating 70 breweries in China, including Snow brand, and holds more than 30 regional brands in the Chinese beer market and has 19.8% of the market shares. In 2009, CRB sold over 837 million liters of beer. With 15.3% growth, the company's total production and sales have been ahead of other domestic beer companies for five consecutive years. In 2009, Snow's single-brand sales increased by 18.8% and reached 724 million liters, consolidating its position as the leading beer brand in the world.
About Snow Beer
In 1964, in a products rating competition, where all the top Chinese beer companies had gathered, a new product among all the other beers won the prize. It was all because of its rich, white, snow-like foam, and long-lasting taste, like a flower, giving it its name: "Snow Beer."
In 2002, CRB (China) Co., Ltd. made Snow Beer into a national beer brand. Snow Beer has a fresh, light taste and is a positive, aggressive, challenging and innovative brand with high popularity among consumers nationwide. It has become a favorite beer among youth. The State Administration for Industry and Trademark Office declared "Snow" brand as "China's Famous Brand" in September 2007.
In 2005, Snow Beer sold 158 million liters of beer and became number one in sales of single-product beer brands. In 2006 Snow became the fastest growing and most valuable beer brand; its brand value reached 11.185 billion yuan. Following 2006, after becoming number one in single-product sales, it had a new high record in 2007: 510 million liters sold; once again it reached the top single-product sales in the Chinese beer industry. In 2007, Snow's brand value reached 13.658 billion yuan. Single-brand Snow sales increased by 19.1% in 2008; sales reached 610 million liters, and it was given the "number one single-brand sales" title four times, becoming the world's number-one selling beer brand, with a brand value of 15.3 billion. Snow brand value increased to 37.726 billion yuan in 2009.
About China Resources Enterprise, Limited
China Resources Enterprise, Limited is listed on the Hong Kong Stock Exchange, as one of Hong Kong's Hang Seng Index constituent stocks. The company focuses on consumer products business, with operations in Mainland China and Hong Kong and is principally engaged in retail, beverage, food processing and distribution.
About SABMiller plc
SABMiller is one of the world's largest beer companies; it is a London-based company that is listed on the London and Johannesburg stock market exchange. SABMiller has a large-scale production and sale of beer and other beverages in 75 countries within six continents. It owns more than two hundred brands of beer; its annual beer sales are about 2,130 million liters. SABMiller is highly recognized for its production management in the international market and is considered to be a well-operated company in emerging markets. In many countries the company has entered, SABMiller brand portfolio and market shares are all in the market leadership position. In May 2002, SABMiller had an acquisition with a U.S company-Miller. Now, it has entered into the world's largest beer market and profit center.
Brief Introduction of CRB (Zhumadian) Limited's 200-Thousand-Kiloliter Annual Production Project
CRB (Zhumadian) Limited by CRB (China) Investment Co., Ltd. launched a 200-thousand-kiloliter annual beer production project in Zhumadian, Henan in June 2006. The total investment is 320 million yuan, which includes 300 million dollars of construction costs. Based on the Quanyue Beer acquisition, CRB will improve the old beer-production equipment and purchase new equipment. It will increase production capacity to 200 thousand kiloliters per year. Because the original facility had small spaces and was located downtown, CRB moved to the industrial-concentrated area in Zhumadian, located in the south-east corner of the intersection of Central Plains Boulevard and Dongxiang Road, whose floor space is 200 acres.
This project was designed by China Light Industry Engineering Co. Ltd. in Guangzhou. The 66,000-square-meter construction includes: new brewing areas (with a legislation warehouse, materials-handling section, fermentation and filter section), the packaging area as well as the utility engineer and environmental engineering sections. The construction period is 10 months. After the completion, the annual sales income will rise to 3 billion; profits tax will be 100 million yuan. After completion of the new facility, production will mainly focus on mainstream Snow Beer (cardboard and plastic boxes) and regional-brand premium beer (such as Shengquan, Xuedi, Ruiquan series, etc.). Internal target of product quality will be higher or equal to the national standard GB4927-2008. Marketing targets are four regions in the eastern Henan Province (Zhumadian, Zhoukou, Shangqiu, Xinyang) and the Xuzhou area in northern Jiangsu Province.
This SABMiller subsidiary news release has been translated from its local market language to English language for publication on www.sabmiller.com. We have attempted to provide an accurate translation of the original material but due to the difficulties of translation slight differences may exist. Note: This news release was first published in its local market on 26/11/2010.