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CRB has Successfully Bid ZheJiangXiHu Beer (Translation)

2 December 2010

China Resources Snow Breweries (China) Co., Ltd. (hereinafter referred to as CRB) officially announced in Beijing on November 29, 2010 the acquisition of Hangzhou XiHu Beer Asahi (stock) Co. Ltd., with a 45% stake, and sixteen registered trademarks including "XiHu." The price for those two transferals was 2.68 billion yuan in an online auction.

As a well-known beer brand in the industry, XiHu Beer has 50 years of development history and has gathered a number of outstanding, talented employees in production, technology, marketing and other aspects. So far in 2010, the expected production capacity of XiHu Beer has reached 30 million liters, and expected sales are about 11 million liters.

There are five CRBs in Zhejiang, whose production capacity will reach 200 million liters after the acquisition of XiHu Beer. CRB will have a 45% stake and the ownership of sixteen registered trademarks including "XiHu" after the transferal. This acquisition will insure further development of the Zhejiang market and will have a far-reaching impact for CRB.

At present, CRB overall production capacity is about 1,360 million liters. After the acquisition is completed, overall production capacity will reach 1,400 million liters.

CRB has been the number-one beer brand in China for five consecutive years, starting in 2005. In 2009, CRB achieved a 837-million-liter production sales volume. One of the sub-brands-Snow Beer-was the number-one single-brand seller in the country in 2008. Currently, the CRB brand value has reached 37.726 billion yuan. As the highest market share in Zhejiang, CRB had already sold more than 100 million liters before the end of October this year.

Statistics show that Zhejiang market capacity is close to 300 million liters of beer. Ranked third in the provinces and cities, it is a true "beer province," and is also a battlefield for beer companies. Tsingtao Beer and other enterprises have also joined this acquisition.
The CEO of CRB (China) Limited, Wang Qun, said, "Zhejiang Province is one of the major markets for CRB; this successful bid ensures the further improvement of the market in Zhejiang, planned by CRB, and consolidates the top-position sales in Zhejiang Province. We are confident that we will have greater achievement with the "XiHu" employees.
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About CRB (China) Co., Ltd.

CRB (China) Co., Ltd. was established in 1994 and is a professional production and management beer company in 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. It has 19.8% of the market shares. In 2009, CRB sold over 837 million liters of beer. With 15.3% annual 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, which consolidated its position as the leading beer brand in the world.

About Snow Beer

In 1964, in the 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 its 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. The following year, 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 in 2008 increased by 19.1%; sales reached 610 million liters, and it was given "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. The 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 sales of beer and other beverages in 75 countries within six continents, and it owns more than two hundred brands of beer; the annual beer sales are about 2,130 million liters. SABMiller has a high reputation for production management on the international market and is considered to be a well-operated company in emerging markets. In many countries where the company has entered, the SABMiller brand portfolio and market share 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.

About Hangzhou XiHu Asahi Beer (Stock) Co., Ltd.

Hangzhou XiHu Asahi Beer (Stock) Co., Ltd. formerly known as Hangzhou Brewery, has more than 50 years of history. The Department of Hangzhou Industrial Assets Management Co., Ltd. (China) and Asahi Breweries ITOCHU (Holdings) Limited (foreign) are joint venture large-scale beer producers. The total investment is 370 million yuan with registered capital of 276 million yuan, of which a 45% investment ratio is from China and the foreign investment ratio is 55%. This company covers 100 thousand square meters and has an annual production capacity of 25 million liters. According to the information, with March 31, 2010 as the base date, the total assets of XiHu Beer is 5.22 billion yuan, total liabilities 241 million yuan and 281 million yuan in equity, corresponding to the transfer value of 134 million yuan. According to another assessment, "XiHu" and 16 registered trademarks have an assessed value of 85.39 million yuan.

The company was formerly known as Hangzhou brewery, the birthplace of the beer industry in Zhejiang Province. The company has a large number of technology professionals making up a strong technical force. After the technical cooperation with Japan's Asahi Breweries in 1994, the company sent three to five technical professionals to Japan to participate in technical training and information exchanging. Asahi Breweries sent technical experts to permanently remain in Hangzhou to give technical guidance for beer production. Through technical exchanges and cooperation, XiHu Beer production technology has rapidly increased; the quality indicators have reached the international advanced level. In recent years, the development of green beer has become a favorite of hotel and restaurants, and sales have doubled due to its excellent quality, light, cool taste and unique, personalized packaging.

The company has advanced equipment. In 1996, nearly 300 million yuan was invested in Western-European equipment and introduced into the beer production, including the HUPPMANN (Hoffman) from Germany, the automatic saccharification equipment; an automatic Fermentation control system from Denmark, DANBREW (Danbrew); and the filtration equipment from Switzerland, FILTROX (Fürth Ross). The company also imported the filling production line from Germany KHS and a full set of beer analysis instruments from Sweden, Denmark and other countries. All the equipment has reached the international advanced level. In recent years, the company has been putting in funds for technological innovation, and constantly improves the production equipment. The production scale has gradually expanded.

The company has introduced an advanced management mode-5S from Japan-in order to develop its target cost management. The enterprise management level has been greatly improved, production costs was decreased, and the company was the first beer company in the industry in Zhejiang Province which passed ISO9000 (2000 version), ISO14001 and HACCP system certification. In 2003, the company passed the cleaner production audit in the certification center of Zhejiang Province, becoming the first cleaner production demonstration enterprise in Zhejiang Province, also the first green beer industry enterprise in Zhejiang Province.

Our main products include the XiHu beer products and the Asahi beer products, such as Longjing spring water, etc.

Devlopment History:

● 3/18/1958: Hangzhou People's Committee officially named the former Hangzhou brewery as state-owned Hangzhou Taoyuan Ridge Brewery.

● 7/18/1959: Hangzhou Taoyuan Ridge Brewery was renamed to Huangzhou Taoyuan Brewery.

● 1959 the end of September, the first bottle of beer was made in Hangzhou Taoyuan Brewery, Zhejiang Province.

● Nov. 1959: Hangzhou Taoyuan brewery officially started to produce beer.

● 1968: Hangzhou Taoyuan brewery was renamed Hangzhou Brewery.

● 1972: a successful trial of the 12° special XiHu Beer.

● 1982: Successful completion of the first phase of expansion, production capacity of 15 thousand tons.

● 1985: Second phase of the expansion projects successfully completed, production capacity of 30 thousand tons.

● 5/26/1982: XiHu Beer trademark registration with the State Administration for Industry and Commerce, marking the company's official ownership of the XiHu brand.

● 1991: The successful completion of Phase III of the expansion project, production capacity reached 60 thousand tons.

● 7/2/1992: Hangzhou Brewery and Hong Kong Zhongce Investments Limited Brewery officially jointed venture, set up Hangzhou Zhongce Beer (Stock) Co., Ltd.

● September 1994: Hangzhou Zhongce Beer (Stock) Co., Ltd. and Asahi Breweries Ltd. of Japan held a press conference to announce Hangzhou Zhongce Beer (Stock) Co., Ltd. officially started producing Asahi beer.

● August 1995: In order to increase production capacity, further expansion of investment was processed, and the production capacity reached 120 thousand tons.

● January 1997: State Economic and Trade Commission, with seven other units, jointly issued a document that identified Hangzhou Zhongce Beer (Stock) Co., Ltd. as the large-scale national industrial enterprise in "the year of 1995".

● 2000: Japan's Asahi Breweries Ltd. and Itochu bought all shares of Hong Kong Asahi Beer Group Co., Ltd. (Foreign). June 6, 2000: the company changed its name to XiHu Beer Asahi (Stock) Co., Ltd.

● 2004: For the first time, the company sold 20 million liters; this became a major milestone in the history of the company's development.

● 11/25/2005: The company and the government of Xinshi town, Deqing County signed an agreement to put in new factory buildings.

● 2005: Company was the first Hangzhou construction of economy construction demonstration unit. In August of the same year, the provincial and municipal leaders visited the company for the recycling economy construction work.

● August 2006: The new plant was officially under construction in Deqing.

● September 2007: The first phase of Deqing's new plant was officially completed; trial production was successfully done and smoothly transitioned into the production phase.

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 29/11/2010.

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