Tsingtao says A-B funds will allow it to upgrade - Anheuser-Busch Companies Inc. invests in Tsingtao Brewery Company Ltd - Brief Article

Modern Brewery Age, Nov 4, 2002

China's Tsingtao Brewery Co. has confirmed it would use the $182 million invested by Anheuser-Busch Cos. Inc. to upgrade existing plants and acquire more local breweries.

Dow Jones Newswires reported that a Tsingtao spokesman said last week it would use the money to improve existing plants, upgrade technology, build new factories and make the acquisitions. However, he said Tsingtao's acquisition's would be limited to domestic players, as it is not looking at any foreign acquisition.

Dow Jones said Tsingtao's aggressive acquisition plans in the past eight years have increased its asset base to 46 plants in 17 Chinese provinces, up from four plants in only one province in 1994. On Oct. 21, A-B said it would spend about $182 million to boost its existing 4.5 percent stake in Tsingtao, China's largest brewery, to 27 percent over seven years, making A-B the company's largest non-government shareholder.

Qinqdao, China-based Tsingtao Brewery Co. Ltd., which holds an 12.8 percent share of the beer market in China with its Tsingtao brand. The beer market in China is the world's second largest with 200 million hectolitres, or 4.4 billion gallons, and has been growing annually at 6 percent.

Tsingtao beer is the number one beer brand in China and the most well-known Chinese beer in the international market.

Anheuser-Busch also owns 98 percent of the Budweiser Wuhan International Brewing Co., in Wuhan, China, where Budweiser is brewed.