Japan & China: Sapporo Breweries returns to China in partnership with AB InBev

Sapporo Breweries has announced its pending return to China, partnering up with Anheuser-Busch InBev's operations in the country to handle distribution.

In a statement on September 19, the Japanese brewer confirmed the move into a market where the premium beer segment has been posting some healthy gains of late. Exports of Sapporo Premium Beer will kick off next month, targetting cities along China's east coast, including Beijing and Shanghai.

As well as bottles and cans, the group's namesake brand will also be available to the country's on-premise channel in 20-litre kegs.

"China is the largest beer consuming country on the globe and its premium segment of this market inclusive of imported beer brands is in particular continuing to exhibit dramatic growth," Sapporo said. "Now is the right time to re-enter the market and launch sales consignments through a master distributor contract with AB InBev that commands a dominating market presence in the premium segment."

According to Bloomberg, the company initially entered China in 2007, before pulling out two years later "due to lack of demand".

AB InBev has long-trumpeted its current success at the higher end in China. Speaking exclusively to just-drinks earlier this year, group CEO Carlos Brito said: "When we looked at what we could offer in terms of being different in (China), we also looked at where the margins were.

"We already dominate the premium category, now we're building the country's super-premium category. This is double the price and margin of premium. It's a developing channel."

Heineken is another brewer to respond to China's premium potential. Last month's purchase of a stake in China Resources Enterprises was positioned squarely as a future driver for its namesake brand in the country. "The premium market is developing at a much faster speed than ever before," said CEO Jean-Francois van Boxmeer at the time.

"CRE's lack of international premium brands is felt more than before and for Heineken, we more than ever feel the need to have more distribution power."