China, Beijing: Harbin Brewery Group, in which Anheuser-Busch Inc holds a 99.4 % stake, is protesting an exclusive sales agreement signed between China Resources Breweries Ltd's wholesalers in Shenyang and their 1,800 retailers, China Business News reported on December 27, citing an official with Harbin Brewery Group. “This is contrary to rules of normal market competition and we will seek ways to address it,” the official said.

Hou Xiaohai, an official at China Resources Breweries Ltd, said the exclusive sales agreement which refers to Snow brand beer was an independent matter between retailers and wholesalers, and denied any company involvement, the newspaper said.

China Resources Breweries Ltd enjoys a 32 pct market share in northeastern China while Harbin Brewery has a 30 pct share, the newspaper added.
China, one of the world's fastest growing beer markets, is seeing intensifying competition from foreign brewers driven by stagnant growth in their home countries.

Annual per capita beer consumption in China currently stands at only 19 liters, compared with 75 liters in Europe and 84 in the US. At the same time, income levels here are rising rapidly and consumers are acquiring a growing taste for beer, according to AFX.

So far, global beermaker Interbrew has spent more than US$ 600 million in acquiring local beer makers in the country, and other big-name foreign brands such as Anheuser-Busch, SABMiller Plc, Carlsberg International AS and Scottish & Newcastle Plc, are also boosting their presence.

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