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SABMiller associate invests in Heilongjiang Province

4 May 2006

Ref 18/2006

China Resources Snow Breweries Limited (“CR Snow”), an associate of SABMiller plc and a subsidiary of China Resources Enterprise Limited (“CRE”), announces that it will invest US$35.3 million in the construction of a new brewery in Harbin City, Heilongjiang Province.  Construction of the brewery has commenced and is expected to complete in 18 months with an initial production capacity of 2.3 million hectolitres.  The brewery will be used mainly to produce CR Snow’s national brand, “SNOW”, targeting the Harbin area and the western region of the province.  CR Snow’s existing brewery in Shangzhi, a city in the south-eastern region of Heilongjiang, will service the eastern part of the province.

Heilongjiang Province reported total beer sales in 2005 of 15 million hectolitres and annual consumption per capita of 39 litres, significantly above the national average of 23 litres.  The new brewery will provide a production, distribution and marketing platform to support the national brand strategy of SNOW and cater for the increased demand of CR Snow products.  Total sales volumes of SNOW brand increased 47% in 2005 to 15.8 million hectolitres.  Over the past two years CR Snow has increased sales volume by approximately 90% in Heilongjiang Province and has grown its market share in the province to circa 20%. 

Mr. André Parker, Managing Director of SABMiller Africa & Asia, said, “The need to build a brewery to supply the demand in this key region shows the increasing presence we have in Heilongjiang despite the other incumbent competitors. This will provide us a perfect base from which we can expand our successful SNOW brand into Harbin and challenge the competitive environment.”

Mr. Mark Chen, Managing Director of China Resources Enterprise, Limited said, “The greenfield plant further consolidates our position in the north-eastern area of China – the home of the SNOW brand. It offers an economical and efficient solution to provide the capacity and complements the existing operations in the area.”


Notes to editors


SABMiller plc is one of the world’s largest brewers with brewing interests or distribution agreements in over 60 countries across five continents. The group’s brands include premium international beers such as Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as an exceptional range of market leading local brands.  Outside the USA, SABMiller plc is also one of the largest bottlers of Coca-Cola products in the world.
In the year ended 31 March 2005, the group reported US$2,194 million pre-tax profit and a turnover of US$14,543 million on a UK GAAP basis.  SABMiller plc is listed on the London and Johannesburg stock exchanges.

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China Resources Snow Breweries Limited

China Resources Snow Breweries Limited was established in 1994 and is engaged in the production, sales and marketing of beer and beverages in China.  Its shareholders are China Resources Enterprise, Limited and SABMiller plc.  China Resources Enterprise, Limited has a 51% interest in China Resources Snow Breweries Limited while SABMiller plc holds a 49% interest.  It operates 41 breweries in the Chinese Mainland with a total sales volume of 39.5 million hectolitres in 2005.

About China Resources Enterprise, Limited

China Resources Enterprise, Limited is listed on the Hong Kong Stock Exchange and is also traded on SEAQ International of the London Stock Exchange.  It is also one of the constituent stocks of the Hang Seng Index in Hong Kong and Hang Seng London Reference Index.  The Group focuses on the consumer businesses in both Hong Kong and the Chinese Mainland, with core activities being retail, beverage, food processing and distribution, textile and property investment.


SABMiller plc  
Tel: +44 20 7659 0100
Sue Clark 
Director of Corporate Affairs 
Tel: +44 20 7659 0184
Gary Leibowitz 
Senior Vice President
Investor Relations 
Tel: +44 20 7659 0174
James Crampton 
Media Relations Manager 
Tel: +44 20 7659 0172

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