CR Snow announces partnership with China Kweichow Moutai Distillery Co. Ltd to form Joint Venture in Guizhou Moutai Beer
SABMiller plc announces that China Resources Snow Breweries Limited ("CR Snow"), its joint venture with China Resources Enterprise, Limited ("CRE"), has entered into an agreement with China Kweichow Moutai Distillery Co. Ltd to jointly invest in Guizhou Moutai Beer ('Moutai Beer') and form a joint venture called China Resources Snow Breweries (Junyi) Limited. As part of the transaction, CR Snow will inject RMB 270 million (approximately US$42 million) in return for a 70% equity stake in the joint venture.
With an annual production capacity of 1 million hectolitres, Moutai Beer is a popular brand with a strong competitive position in Guizhou Province. CR Snow already has a leading position in Guizhou Province, with a market share of approximately 50% and sales volume of over 1.8 million hectolitres in 2010. Since its entry into the Guizhou market in 2007, CR Snow's sales volumes have grown at 40% per year, making Snow the most prominent brand in the province.
Ari Mervis, Chairman of CR Snow and Managing Director of SABMiller Asia, commented: "CR Snow's partnership with Moutai further strengthens our position in this important province and further supports in building on our position as the leading brewer in the China beer market."
Mr. Chen Lang, Chief Executive Officer of China Resources Enterprise, Limited said: "The brewing industry in Guizhou Province has been growing rapidly in recent years, with the overall sales volume in 2010 increasing by 10% year-on-year to 3.9 million hectoliters. Moutai Beer has a sound track record with potential for explosive growth. Leveraging the joint venture's brand equity in Guizhou Province, CR Snow will immediately widen its market network, thereby generating more opportunities for Snow beer's further development. We believe that such deep collaboration between the two leading parties will not only facilitate our strategic plans for our beer business in Guizhou Province, but will also provide a more established platform for continued sustainable growth."
About SABMiller plc
SABMiller plc is one of the world's largest brewers with brewing interests and distribution agreements across 75 countries in six continents. The group's wide portfolio includes global brands such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch, as well as leading local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. SABMiller plc is also one of the world's largest bottlers of Coca-Cola products
In the year ended 31 March 2011, the group reported US$4,491 million adjusted pre-tax profit and group revenue of US$28,311 million. SABMiller plc is listed on the London and Johannesburg stock exchanges.
About China Resources Snow Breweries Limited
China Resources Snow Breweries Limited was established in 1993 and became a joint venture with SABMiller plc in 1994. It is engaged in the production, sales and marketing of beer in China. Its shareholders are China Resources Enterprise, Limited and SABMiller Asia Limited, a subsidiary of SABMiller plc. China Resources Enterprise, Limited has a 51% interest in China Resources Snow Breweries Limited while SABMiller Asia Limited holds the remaining 49% interest. In 2010, it operated over 70 breweries in China with a total beer sales volume of about 92 million hectolitres. It is the largest beer company in China by sales volume.
About China Resources Enterprise, Limited
China Resources Enterprise, Limited is listed on the Hong Kong Stock Exchange and is one of the constituent stocks of the Hang Seng Index in Hong Kong. The Group focuses on the consumer businesses including retail, beer, food and beverage in China.
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