Hong Kong: China Resources Snow Breweries Limited (or ‘CR Snow’), a subsidiary of China Resources Enterprise, Limited and a joint venture with SABMiller plc, announced on April 11 that it has entered into an agreement with the Fuyang City Government, PRC for the acquisition of the assets of the reorganized Fuyang City Snowland Brewery Co., Ltd. (or ‘Snowland Beer’) for a cash consideration of RMB125 million (US$15 million). Snowland Beer has a total annual production capacity of 140,000 kilolitres and achieved sales volume of about 110,000 kilolitres last year.
‘Snowland’ and ‘Johnson’ are the two more famous brands marketed in Fuyang by Snowland Beer, the largest brewery in the north-western region of Anhui Province. At present, CR Snow has four breweries in Anhui, including the two breweries acquired from Anhui Longjin Group Limited in June last year, with a focus on the central region. Snowland Beer represents the third acquisition of CR Snow made in Anhui Province and can extend its market dominance from the central region to the north-western region of the province. Subsequent to the completion of the acquisition, CR Snow will further expand the production capacity to 200,000 kilolitres, while total annual production capacity of CR Snow will then be increased to over 5.7 million kilolitres, excluding the new brewery plant to be built in Dongguan, Guangdong, and its interest in the brewery plant under relocation in Xiling, Zhejiang.
Mr. Song Lin, Chairman of China Resources Enterprise, Limited said, “We have clearly enjoyed substantial cost and market synergies shortly after the acquisition of the Longjin breweries. By consolidating breweries in proximate areas and integrate our sales and marketing efforts, this will enhance our revenue and operating margins and help Snow further penetrate the market.” André Parker, Manager Director of SABMiller’s Africa & Asia division, said, ”This acquisition gives us access to the north-western portion of Anhui Province and builds on our dominant market share in Hefei and Liuan. It also further develops our significant market presence across the central region where we have already established a strong foothold in Wuhan.”
China Resources Snow Breweries Limited was established in 1994 and is engaged in the production, sales and marketing of beer and beverages in China. Its shareholders are China Resources Enterprise, Limited and SABMiller plc. China Resources Enterprise, Limited has a 51% interest in China Resources Snow Breweries Limited while SABMiller plc holds a 49% interest. It operates more than 30 breweries in the Chinese Mainland with a total sales volume of about 3.1 million kilolitres in 2004.
China Resources Enterprise, Limited is listed on the Hong Kong Stock Exchange and is also traded on SEAQ International of the London Stock Exchange. It is also one of the constituent stocks of the Hang Seng Index in Hong Kong and Hang Seng London Reference Index. The Group has a well-diversified portfolio of businesses in both Hong Kong and the Chinese Mainland, with principal activities being retail, beverage, food processing and distribution, textile and petroleum distribution.
SABMiller plc is one of the world’s largest brewers, with 2003/04 lager sales volumes in excess of 137 million hectolitres. It has a brewing presence in over 40 countries across four continents and a portfolio of strong brands and leading market shares in many of the countries in which it has brewing operations. In the year ended 31 March 2004, the group generated US$1,391 million pre-tax profit from a turnover of US$12,645 million. SABMiller plc is listed on the London and Johannesburg stock exchanges.
Wstecz
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