Y.R. Cheng, president, Anheuser-Busch Greater China
2008 BRINGS NEW ERA FOR ANHEUSER-BUSCH’S BUSINESS IN CHINA
SHANGHAI (April 16, 2008) - Anheuser-Busch, a leading international brewer, today announced its plans to grow the Budweiser and Harbin premium brands in China. Increasing distribution will remain a key focus in 2008 as Budweiser will be launched in more than 25 new cities, while Harbin premium brands are introduced to more than 30. The increase in distribution will be supported by the opening of Anheuser-Busch’s new Foshan brewery, plans for a larger Tangshan brewery as well as Budweiser’s sponsorship of the 2008 Olympic Games in Beijing.
Budweiser and Harbin both continue to experience strong growth throughout China. In 2007, Budweiser achieved double-digit volume growth, an accomplishment the brand has averaged since it was introduced in 1995. Budweiser, China’s leading super-premium beer, also successfully expanded into more than 20 new markets in 2007 as part of a growth strategy to double the brand’s distribution in China by 2010.
To support Budweiser’s growth, Anheuser-Busch began construction on its first international greenfield brewery in Foshan last July. The new brewery will start production at the end of this year and have an initial capacity of 260,000 tons (2.2 million barrels).
In 2007, the Harbin premium beers made the transition from a regional beer to a national brand. Harbin even became available for the first time overseas, launching in the United States and United Kingdom.
Harbin premium brand growth will be supported by a larger, relocated brewery in Tangshan. The new Tangshan brewery will have an initial production capacity of 310,000 tons (2.6 million barrels) with room for expansion. The first phase of construction will cost US $49 million (RMB 346 million) and is expected to be finished in late 2009. /p>
Budweiser’s sponsorship of the 2008 Olympic Games in Beijing will be used to support growth and create excitement for the brand among Chinese consumers. The Budweiser sponsorship includes innovative Olympic-themed packaging and branded merchandise. Budweiser also plans on hosting several exclusive, VIP parties at the Olympic Games with the return of Club Bud.
In addition, the brewer continues to increase support and grow Corona beer across China. In 2007, Corona expanded to more than 60 new cities after Anheuser-Busch became the brand’s exclusive China distributor.
Since first investing in the China market in 1993, Anheuser-Busch has been committed to supporting the development of the Chinese brewing industry. Anheuser-Busch’s investment in China over the past 15 years has exceeded US $1.5 billion (RMB 12.2 billion). Through its strategic partnership with the Tsingtao brewery, its acquisition of Harbin brewery and expansion of its three major production bases in central (Wuhan), southern (Foshan) and Northeast China, Anheuser-Busch has claimed a unique position as the only foreign company participating at all levels of the Chinese beer market.
“Over the past 15 years, Anheuser-Busch and China’s beer industry have grown together,” said Y.R. Cheng, president, Anheuser-Busch Greater China. “We have achieved encouraging results in China. We have brought not only high-quality beer of various tastes to Chinese consumers, but also a series of high-quality international sporting and entertainment spectaculars, including an array of Budweiser Olympic marketing events. In 2008, we will fully integrate our resources and continue to invest in the premium beer market. We are confident in the future of China’s beer industry and plan on continuing to be a major player moving forward.”
In 2001, China overtook the United States as the world's largest beer market, maintaining strong double-digit growth in beer consumption in recent years. In 2007, the Chinese beer industry grew nearly 14 percent, with the premium segment growing 18 percent. The premium beer market continues to show great potential; accounting for 10 percent of sales volume but 50 percent of industry profits.
Based in St. Louis, Anheuser‑Busch is the leading American brewer, holding a 48.5 percent share of U.S. beer sales. The company brews the world famous beers, Budweiser and Bud Light. Anheuser‑Busch also owns a 50 percent share in Grupo Modelo, Mexico’s leading brewer. Anheuser-Busch ranked No. 1 among beverage companies in FORTUNE Magazine’s Most Admired U.S. and Global Companies lists in 2008. For more information about Anheuser-Busch’s business in China, visit www.anheuser-busch.com.