30 May, 2007

China: S&N to launch its biggest brands in Chinese market

Scottish & Newcastle is to break into the growing Chinese market by launching some of its biggest drink brands in the country, Scotsman reported May 30.

The Edinburgh-based brewing giant is to export 12 of its best-selling brands to the Far East after successful test-marketing in Beijing and Shanghai.

Among the brands to now be sold to Chinese drinkers will be Newcastle Brown Ale, Kronenbourg and Strongbow.

The move could prove lucrative to the company, as China is the world's largest beer-consuming market by volume.

S&N first ventured into the country in 1994 when it started a strategic relationship with Chongqing, China's fourth-largest brewer. In 2004, it took a minority stake of less than 20 per cent in the company.

The announcement that it was now to try to sell its own products in the country was made quietly at a Chinese trade show.

Patric Dougan, managing director of S&N in China, said: "This move is a development of our long relationship with Chongqing Brewery, our strategic partners in China, as we attempt to attract consumers who want to drink premium brands."

Although many international brewers have failed in bids to enter the Chinese market S&N are confident of success. Mr Dougan said:

"We intend to seed our brands in selected cities and channels and let local partners help them find the right audience."

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