Processing Magazine

Anheuser-Busch plans China brewery

April 4, 2007

Anheuser-Busch plans to double distribution in China will include a new brewery in that nation''s Guangdong province, the Associated Press reports. The St. Louis-based beer maker will expand Budweiser distribution to an additional 100 Chinese cities, making it potentially available to 150 million new beer drinkers. The new brewery in Foshan, China, is expected to be complete by late next year and cost $63 million. China''s beer market surpassed the U.S. in 2002 as the world''s biggest. It grew nearly 15 percent last year, the third straight year of double-digit volume growth. Anheuser-Busch began brewing in China in 1995 with a facility in the city of Wuhan. In 2004, Anheuser-Busch edged out London-based rival SABMiller PLC in a bidding war for north China brewer Harbin Brewery Group Ltd., a century-old beer maker. A year later, Anheuser-Busch nearly tripled its equity stake in China''s Tsingtao Brewery Co., China''s biggest brewer. The brewery now has a 27 percent stake in Tsingtao.