Anheuser-Busch plans China brewery |
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Tue, 03 Apr 2007 18:16
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ST. LOUIS (AP) - Anheuser-Busch plans to double distribution in China will include a new brewery in that nation's Guangdong province, the company said Tuesday.The St. Louis-based beermaker will expand Budweiser distribution to an additional 100 Chinese cities, making it potentially available to 150 million new beer drinkers. Anheuser-Busch also said it will introduce Harbin premium brands to 33 new markets in 2007.'As the largest-volume and fastest-growing beer market in the world, China remains one of our most important international priorities,' said August A. Busch IV, president and chief executive officer of Anheuser-Busch Cos. Inc.He noted that the premium and 'super-premium' categories that include brands like Budweiser and Harbin are growing faster than the rest of the industry 'and have tremendous long-term potential.'The new brewery in Foshan, China, is expected to be complete by late next year and cost $63 million.As the U.S. beer market has flattened in recent years, Anheuser-Busch has increasingly sought growth overseas.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 beermaker.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.Anheuser-Busch has a 48.4 percent share of the U.S. beer market. In addition to its presence in China, the company owns a 50-percent stake in Grupo Modelo, Mexico's leading brewer.Shares of Anheuser-Busch rose 45 cents, or 0.9 percent, to $51.15 in midday trading on the New York Stock Exchange.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Anheuser-Busch to build brewery in China 