Chinese Beer Market Heats Up

SABMiller, A-B making moves.

Two global brewing giants are deepening their investment in China, the world’s biggest beer market by volume.

Anheuser-Busch next month will start importing Grupo Modelo brands, including Corona Extra, into China. A-B, which owns 50% of Modelo’s nonvoting shares, already markets Budweiser in China and owns stakes in Harbin and Tsingtao.

From A-B’s press release:

“The popularity and high quality of Corona Extra make it an excellent complement to our Budweiser and Harbin beers,” said August A. Busch IV, president and CEO of Anheuser-Busch Cos. Inc. “Corona Extra competes in the super-premium segment of the market, which is experiencing strong growth. With our continued success in this segment, and our 10 years of sales, marketing and distribution experience, we expect to significantly increase the sales of Corona.”

In another A-B move, Advertising Age this week reported that A-B plans to introduce a product called “Budweiser Genuine Draft” in the Chinese market.

Meanwhile, CR Snow -- SABMiller plc’s partner in China -- plans to expand its presence by building a new brewery in the southern part of the country, Just-Drinks reports (subscription required). Its brand Snow recently surpassed Tsingtao as the best-selling beer in China.

Also, CR Snow has agreed in principle to introduce Miller Genuine Draft into the Chinese market, although no launch date has been set.