China: Tsingtao Brewery to become the largest brewery in the northwest China

Tsingtao Brewery the leading Chinese brewery based in the eastern port city of Qingdao, has recently integrated its 9 production facilities in north and northwest China to become the largest brewer in northwest China Tsingtao Brewery Xian Hans Group, Asia Pulse announced on September 9.

The new group makes the Hans brand beer, with an annual output of 1.1 million kiloliters. The Hans is a beer brand born in Xian in 1988 and originally owned by Xian Hans Beer and Drinks Factory.

In December of 1995, Xian City and Tsingtao Brewery capitalized jointly the Xian Hans Beer and Drinks Factory, and renamed it as Tsingtao Brewery Xian Co., Ltd. The recapitalized company expanded its annual beer output from 24,500 kiloliters in 1996 to 600,000 kiloliters in 2004.

Its gross profit hit 431 million yuan (US$53 million) in 2004, a turnaround from a loss of 24.32 million yuan in 1996. Starting from 2000, Tsingtao Brewery has built up nine production bases for the Hans brand in northwest and north China, forming an annual output capacity of 1.1 million kiloliters. Morevorer, it has built a sales network for the brand in 11 provinces, with the market share of the brand topping the northwest China market.

Consistent with a research report, Hans brand is now valued at 1.648 billion yuan, being one of the most valuable brands in China. Hans is now also Tsingtao Brewery's second flagship brand after Tsingtao Beer.