Heineken toasts $3.1 billion China Resources Beer premium tie-up


Aug 4, 2018-

Heineken is taking a $3.1 billion stake in the parent of China Resources Beer, China’s top brewer, to tap a growing thirst for premium brands in the world’s biggest beer market. The world’s No. 2 brewer will take a 40 percent holding in CRH Beer, giving it a strong distribution network in China and greater access to a market it has so far found tough to crack. For CR Beer, the maker of the locally popular Snow beer, the deal is a way to get into the foreign-dominated premium sector at a time when Chinese demand for lower-end brands is waning. “This (deal) will help accelerate CR Beer’s Snow beer high-end strategy and achieve its goal to take a leading position in the premium market within 5-10 years,” CR Beer’s Chief Executive Hou Xiaohai told reporters on a call on Friday. Snow accounts for about 90 percent of CR Beer’s total beer sales volumes but is almost exclusively sold in China. CR Beer hopes to use Heineken’s global network to market it abroad. (REUTERS)

Published: 04-08-2018 10:17

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