SABMiller Eyeing to Boost Beer Production Capacity in China

SABMiller

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.

Latest News

Apple, AT&T
NASA
Google Instant
Vodafone has launched sale of 4.4 billion pounds stake in China Mobile
Job market growth sees slowest rate in August I last 10 months
HP has filed a case against Mark Hurd over his Oracle joining
Google TV to be launched in this year
Boeing to cut its military aircraft division jobs
US president to support the company tax breaks
Terra Firma has alleged Citigroup of fraud in selling the EMI
BP to launch internal investigation over Gulf oil spill
Solemn Angelina Jolie visits with Pakistani flood victims