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CRB takes full ownership of Xihu Beer (Translation)

3 August 2011

On 2nd August, 2011, China Resources Snow Breweries (China) Co., Ltd. (hereinafter referred to as CRB) officially announced in Beijing its acquisition of a 55% stake in Hangzhou Xihu Beer Asahi (Holdings) Co., Ltd. (hereinafter referred to as Xihu Beer) at 270 million RMB.

The acquisition saw CRB further increasing its shares of Xihu Beer since 29th November, 2010,  when it successfully acquired a 45% stake in the company and 16 registered trademarks, including "Xihu", at 268 million RMB. Currently, Xihu Beer is wholly owned by CRB. Within a year, CRB has carried out consecutive acquisitions in Hangzhou, indicating its strong momentum of development in Zhejiang. Through this acquisition, CRB's strategic layout in the north Zhejiang market is further reinforced.

Xihu Beer, formerly Hangzhou Taoyuanling Brewery, was established in 1958, and was the first brewery in Zhejiang Province. It is Hangzhou's well-known beer brand, with over 50 years of development history, and has accumulated a team of outstanding talent in production, technology, sales and other areas. Xihu Beer currently has two production bases in Hangzhou and Deqing, with an annual production capacity of 500,000 kilolitres, and about 120,000 kilolitres in sales. In 2000, Asahi Breweries Ltd. became an official shareholder in Xihu Beer, where Japan's Asahi Breweries Ltd. and Itochu Corporation held a combined 55% shares in Xihu Beer, and China's Hangzhou Industrial Assets Management Co., Ltd. held 45% shares.

CRB has achieved rapid development since entering Zhejiang six years ago, and currently owns six breweries in Zhejiang Province. In 2010, it has reached over one million kilolitres in sales, which accounted for over 40% of Zhejiang's market share. CRB has become Zhejiang's no. 1 beer brand, and is widely popular amongst consumers. Following this acquisition, CRB now have eight production bases in Zhejiang.

Since 2005, CRB has been ranked first in domestic sales for six consecutive years. In 2010, CRB's sales exceeded 9.28 million kilolitres, with an annual increase of 11%. The company's total production and sales has been far ahead of other domestic beer brands for six consecutive years. In 2010, Snow Brand's single-brand sales have seen a further increase of 16% to 8.413 million kilolitres, reinforcing its position as a world-leading beer brand. Snow Brand's brand value also increased by almost 10 billion RMB in 2010 to 46.368 billion RMB, and was ranked 29th on "China's Most Valuable Brands 2011".

This SABMiller subsidiary news release has been translated from its local market language to English language for publication on http://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, the news release was first published in its local market on [02/08/2011].

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