Tsingtao 2Q profit down due to SARS

Modern Brewery Age, August 25, 2003

China's Tsingtao Brewery, which is ten percent owned by Anheuser-Busch, has seen profits fall 15% in the second quarter. The company attributes the drop to SARS and increased barley prices.

Reuters reported that Tsingtao reported earnings of US$5.9 million in the second quarter. The company said customers had been staying away from bars and restaurants in the region because of fear of SARS, or Severe Acute Respiratory Syndrome.

Tsingtao has approximately 13 percent share of the Chinese beer market, soon to be the world's largest.

Tsingtao beer is the No. 1 beer brand in the fragmented Chinese market, and is also the top export brand, with sales in more than 40 countries.

Last year, Anheuser-Busch announced it would spend $182 million to increase its stake in Tsingtao to 27 percent.