China: Anheuser-Busch to expand distribution of its local brands in China

Anheuser-Busch Cos. plans to expand the distribution of its local brands in China, in a tight competition with its rival SABMiller PLC, AFX News reported January 29.

Busch will add as many as 12 new Chinese markets for its Harbin 1900 and Harbin Ice products this year, Stephen Burrows, chief executive of Anheuser-Busch (nyse: BUD - news - people ) International, said.

The St. Louis brewer introduced both brands last year in about 30 markets in China and recently started selling Harbin 1900 in the US as well.

'We believe it can be a national beer,' said Burrows, referring to the Chinese market.

Busch sales volume and operating profit in China grew 20 pct during the first nine months of 2006, he said.

In recent years, both Busch and UK-listed SABMiller have sought to establish national brands in China's highly fragmented beer market in order to gain pricing power and branding strength.

China contributes less than 1 pct of group earnings for major global breweries such as Busch, SABMiller and Belgium's InBev SA.

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