China Resources Snow Breweries Co. and Guizhou Maotai Limited Company Together Launched Capital Increase and Joint Stock for MaoTai Beer (Translation)
22 August 2011
One step further to increase its market share and consolidate market position
- China Resources Snow Breweries Co. and Guizhou Maotai limited company together launched capital increase and joint stock for MaoTai Beer Limited Company, and established China Resources Snow Breweries (Zun Yi) Co. LTD. CRB invested 270 million Yuan on capital increase, which has a 70% stock share.
- Maotai Beer has quite a competitive advantage in Guizhou province with its production capacity of 100 thousand kilolitres.
- In 2010, the sales volume of CRB exceeded 180 thousand kilolitres and achieved 50% of the market share in Guizhou province.
- The launching of the joint stock from both companies will help increase CRB's beer market position in Guizhou province, and accelerate the sustainable growth of CRB's beer business in China.
Hong Kong, August 18, 2011 - China Resources Snow Breweries Co. (or called "CRB" for short), which is a joint-venture enterprise of the affiliated company of China Resources Enterprise, Limited (called "our company" for short) (HKEX No.00291) and SABMiller, together with Guizhou Maotai limited company, announced that they launched capital increase and joint stock for the Guizhou Maotai Beer Brewery Co., LTD. (called "MaoTai Beer" for short), and established China Resources Snow Breweries (Zun Yi) Co. LTD. CRB invested 270 million Yuan on capital increase, that has a 70% stock share. This collaboration will help CRB increase its beer market position in Guizhou province.
Maotai Beer has a competitive advantage in Guizhou province with its production capacity of 100 thousand kilolitres.
This collaboration reflects the beer industry's tendency towards strong development in Guizhou province. CRB entered Guizhou province in 2007, and has increased their sales volume 40% every year; subsequently, it becomes the most influential local brand. CRB is the leader of the beer market in Guizhou province. In 2010, the sales volume of CRB has exceeded 180 thousand kilolitres and achieved 50% of the market share in Guizhou province.
Mr. Lang Chen, the CEO of CRB, states that the development of beer business in Guizhou province is very rapid. The entire beer market has increased 10%, 390 thousand kilolitres, from 2009 to 2010. Guizhou Maotai Beer has excellent achievement and growth potential; therefore, Snow Beer can utilise Maotai's good reputation in the Guizhou market to develop their customer network and maintain a good momentum for future development. This collaboration was believed to be beneficial to the CRB's beer business strategic plan in Guizhou province, and offered a firmer foundation for its sustainable development.
SABMiller's Asian Market managing director Weisi Mu states that the collaboration of CRB and Maotai Brewery increased our market position in Guizhou, which is a very important province, and we are going one step further to strengthen our leading position in the Chinese beer market.
Our company entered the beer business in 1993. In 1994, our company collaborated with SABMiller, which is one of the of the leading global beer enterprises. CRB has already become the leader in the Chinese beer market thanks to their successful acquisition strategies, effective integration implementation, and persistent brand building. CRB's sales volume exceeded 9.28 million kilolitres and 21% of the market share in 2010, and increased 11% from last year. In 2010, Snow's single-brand sales increased by 16% and reached 8.413-million-kilolitres, consolidating its position as the sales volume champion in China for 6 years running since 2005. The brand value of "Snow" was 46.368 billion yuen in 2010, and in 29th position of "Most Valuable Chinese Brand 2011."
About CRB Snow Beer
CRB Snow Co., LTD was established by our company in 1993, and become a joint venture enterprise with SABMiller plc in 1994. Our business includes beer production, sales and distribution. Its shareholders are China Resources Enterprise, Limited and SABMiller Asia Limited, which is a branch company of SABMiller. The shareholders of China Resources Enterprise are currently 51% shareholders of CRB Snow, and SABMiller Asia Limited control 49% of shares. CRB is currently operating more than 70 breweries in China, and sold over 9.28-million-kilolitres of beer in 2010. CRB is the largest beer enterprise in China by sale volume.
About China Resources Enterprise, Limited
China Resources Enterprise, Limited is listed on the Hong Kong Stock Exchange. The company focuses on the consumer products business in Mainland China and is principally engaged in the retail, beer, food, and beverage business.
About SABMiller plc
SABMiller is one of the world's largest beer companies. SABMiller has a large-scale brewing production and sales in six continents. It owns several world famous beer brands, including Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft, Grolsch, Aguila, Castle, Miller Lite, Snow, Tyskie and other local leading brands. SABMiller plc is also one of the largest bottlers of Coca Cola. Through March 31st, 2011, SABMiller plc's before-tax profits are 4.491 billon dollars, with a 28.311 billon dollar turnover. SABMiller plc is listed in the London stock exchange and Johannesburg Stock Exchange.
For more information, please contact
China Resources Enterprise, Limited
Mr. Handan Xie
Strategic Planning and Investor Relationship Department
Cell: +852 9861 1983
Fax: +852 2598 8453
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, the news release was first published in its local market on [18/08/2011].