China - China Brew & Beverage - (Food & Drink) - Beijing
Event Details
Event Type Exhibition
Event Date 05/09/2006 / - 09/09/2006 /
Registration Cut-Off Date
Grant Application Cut-Off Date 11/07/2006
Event Description
The Brewing Food and Beverage Industry Suppliers Association (BFBI) will be taking a group of UK businesses to the China Brew and Beverage with UKTI support. (Tradeshow Access Programme).
Venue Details
Further Information
Applications for support need to be submitted to the Brewing Food and Beverage Industry Suppliers Association (BFBI) 8 weeks prior to the event start date. The BFBI clears your application with your local International Trade Adviser and submits it to UKTI.
The contact for this event is Ruth Evans BFBI - info@bfbi.org.uk
Find out more about UKTI support by clicking here - market entry
Contact Details
Brewing Food and Beverage Industry Suppliers Association
85 Tetterhall Road
Wolverhampton
UK
WV3 9NE
Telephone:01902 422 303
Email:info@bfbi.org.uk
UK Trade & Investment Contact:
george.docherty@uktradeinvest.gov.uk
Publication date: 27/03/2006
Chinese beer sector attractive; but companies reluctant to introduce overseas partners
23 March 2006
Chinese beer companies are not actively searching for overseas partners or stake buyers, according to an analyst and industry executives. The market for beer in the country is becoming more attractive to overseas investors increasing 5-8% annually.
United Securities analyst Liu Shukun said the market with high growth and return rate is attractive, but China is relatively mature in terms of brewing technology and promotions. So the incentive for local companies to introduce overseas investors is diminishing.
There are several hundred brewing companies in China. Some 20 of them have established a relationship with large overseas players, like Heineken and Budweiser, or introduced strategic investors from Japan, Taiwan, and Hong Kong.
Most Chinese beer brewing companies are state-owned and profitable. The analyst forecasts this situation will remain so for many years: another reason why local companies might retain controlling stake positions, he said.
Yanjing Beer has been approached by overseas players seeking cooperation or even a buyout in the past year, but was not interested, an executive at the company said. Yanjing Beer, a listed state-owned company, is also one of the biggest breweries companies in China. In 2005, its turnover reached CNY 8bn (USD 1bn).
Daxue Beer sold a 25% stake to Kirin Brewery Company, a Japanese player, last year. An executive at the company said there were no plans to sell a controlling stake in the future. If an overseas investor is seeking potential collaboration with local beer companies, or seeking a buyout, it should focus on second-tier companies, he continued.
In 2004, Daxue Beer's turnover reached CNY 263m (USD 32m). The Kirin deal was worth CNY 300m (USD 37m).
Beer companies in China have become scarce, so there might also be an inflated price situation, according to the analyst. High offering prices might also deter potential overseas investors, the analyst said.
Source: Merger Market
