Guanshengyuan Group, a leading food producer, expects beer sales in Shanghai to be flat this year from last year due to fierce foreign and domestic competition, company officials said yesterday. 'Competition is fierce,' president Li Minlu said. 'China's market is big, there are a lot of brands and supply now exceeds demand.' Shanghai-based Guanshengyuan sells domestic Reeb brand beer through a joint venture with Thailand's CP Group, Holland's Heineken and Singapore's Asia Pacific Breweries. 'The overall beer market in Shanghai is all right now, but basically in balance with last year - there won't be new development,' said Weng Mao, general manager of Guanshengyuan. 'Originally we thought it ought to be better,' he said. 'But looking at it now, it's relatively flat.'