CRE takes over Tianjin Foster's
China Resources Enterprise (CRE) has acquired the 92.5 per cent share held by Foster's China in Tianjin Foster's Brewery through subsidiary CRE Beverage.
The Tianjin brewery, which has an annual production capacity of 75,000 tonnes, is the only one in the city.
Foster's, faced with fierce competition in the mainland's price-sensitive regional markets, decided last August to spin off its operations in Tianjin and Guangdong in order to concentrate on the Shanghai market.
The acquisition is also in line with CRE's strategy to expand its beer production capacity and market share in the mainland.
With the acquired brewery, CRE now runs five breweries in the top cities of the mainland northeast and one in Sichuan. The company's annual brewing capacity in the mainland will reach about 950,000 tonnes.
CRE managing director Huang Tieying said his company was optimistic about the mainland beer market.
'Together with our joint venture partner, South African Breweries, the world's fourth-largest brewing company, we are confident the company will continue to build a world class brewing operation well into the next millennium.' CRE Beverage is 51 per cent owned by China Resources and 49 per cent by South African Breweries.