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Snow Meixue Merged Together for Good (Translation)

28 June 2011

CRB Is Ready to Unify Beer Companies in Liaoning Province

"Wintersweet wouldn't look sharp without snow; snow would lack personality without poetry; finishing a poem in the magic hour just as it starts to snow; this moment, together with wintersweet, feels like spring spirit." The thousand-year-old wishes from Meipo Lu, a Song Dynasty poet, has crossed the universe of time and comes true today. Yesterday morning, CRB officially announced that they invested 300 million RMB to purchase 85% stake of Fuxin Meixue Beer Co., LTD, and established a brand new China Resources Snow Breweries (Fuxin) Co., LTD. They make Meixue beer as their major brand in the market. The annual production capacity of the original company was 150-thousand-kiloliters, making them the brewery with the highest output of any in the West Liaoning Province.

Merged two breweries in one month
The acquisition ceremony of China Resources Snow Breweries (Fuxin) Co., LTD. started at 10:58 AM, June 27th. The leaders of Fuxin, along with CRB Liaoning Province regional manager Yongzhuo Na, unveiled the nameplate for the new company. The leader of the Fuxin city government hosted the ceremony and gave a congratulatory speech.

CRB just completed a merger with North Green Food Co., Ltd. Qinghe Moni Beer Branch, and established China Resources Snow Breweries (Tieling) Co., LTD at the beginning of this month; furthermore, they settled down again in Fuxin Yesterday. In this beer-selling busy season, which is already underway, CRB merged two breweries in one month. The intensive preparation and arrangements necessary to do so astounded the entire industry. According to research, CRB, which owns breweries in 10 out of 14 cities in its birthplace Liaoning Province, has certain distinct advantages over its competitors. By looking at its uninterrupted successes, one can predict that it is only a matter of time before CRB unifies all of the beer companies in Liaoning Province.

The CRB Speed is not coincidence
The scale and speed of CRB's mergers is not coincidence. CRB had planned it strategy for integrating the Liaoning Market well in advance. CRB is well-suited for dealing with second level markets like Fuxin and Tieling.  The success of this acquisition is like a ripe melon falls off its stem.
Of course, the success of acquisitions in recent years also provides CRB with plenty of experiences. From negotiations and integrations to market consolidations, every step of each acquisition was carried out with the utmost propriety.
It has been reported that CRB owns multiple beer production enterprises in the cities of Liaoning Province including Shenyang, Dalian, Anshan, Panmian, Liaoyang, Dandong, Huludao, Chaoyang, Tieling, and Fuxin, and their total production capacity exceeds 2.3-million-kiloliters. Their distribution networks are spread all over the province, and have strong advantages in these cities.

High degree of concentration benefits the development of the market
As the degree of concentration becomes more and more intensified, corporate competition becomes more and more clear.  The same principle applies here, and also foresees that an enterprise that undergoes technique reformation, equipment upgrades, and management reformation after being acquired will be more competitive, and better able to fufil the development needs in the industry.
CRB has already invested 300 million yuan on project improvement. The new company will adopt the strict management and quality control system from CRB, which will result in higher quality products and a richer product mix to fulfil the needs of the consumers.

"After the intensive technology, equipment reforming, and multiple market testing, the technology and equipment are fully qualified to produce ‘Snow' beer. Production of Snow beer has already begun. The consumers in Fuxin can now enjoy the Snow beer that was brewed in their local area," CRB Liaoning Province regional manager Yongzhuo Na said in a recent interview. The development of Snow beer is the tendency of the industry. The high-grade beer culture that CRB brings will satisfy consumers regardless of their beer preference.  Aside from the high quality of the products, a series of brand promotion campaigns and public welfare activities are just a few of the surprises that CRB has in store for its consumers.

About CRB (China) Co., Ltd.

CRB (China) Co., Ltd., established in 1994, is a professional production and management beer company. 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 more than 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 share. In 2010, CRB sold over 9.28-million-kiloliters of beer. With 11% growth, the company's total production and sales have been ahead of other domestic beer companies for five consecutive years. In 2010, Snow's single-brand sales increased by 16% and reached 8.413-million-kiloliters, 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 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 favourite 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 1.58-million-kiloliters 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: 5.1 million-kiloliters 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 6.1-million-kiloliters, 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, beer, food, and beverage business.

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 one hundred breweries and two hundred brands of beer; its annual beer sales are about 218 million tons. SABMiller is highly recognised 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.

This SABMiller subsidiary news release has been translated from its local market language to English language for publication on 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 [24/06/2011].

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