SABMiller Plc and its Chinese partner have revealed their intentions of acquiring and increasing their capacity in production in order to boost and reach its potential in China.
Ari Mervis, managing director of SABMiller’s Asia operations, which makes the country’s best-selling beer, said, “Building capacity in China remains relatively cheap. The venture will also continue to open new breweries”.
Shaun Rein, Founder and Managing Director of China Market Research Group, is of the view that the growing health consciousness and incomes of people in the most populated country in the world, are making consumers move to products that offer better quality.
Commenting on the issue, Rein said, “The problem is too much of the beer here is very low margin and in some places it’s cheaper than water”.
Mervis explained to the reporters, “What you find locally in China is underperforming assets”, adding that licenses and stock can be acquired at relatively cheap prices and rebuilt at very competitive rates.
Ari Mervis, who is also the Chairman at China Resources Snow, stated that China is going to retain its “fastest growing market in Asia” tag, in terms of per capita beer consumption.
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