China Resources-SAB Miller JV Acquires two Chinese Breweries from Heineken

With its major beer brand “BBOSS”, Jiangsu Dafuhao Breweries has a strong market position in the central part of Jiangsu Province. It owns five breweries in Jiangsu Province with an annual production capacity of over 450,000 kiloliters.

Jul 14 2011 --- China Resources Snow Breweries Limited (CR Snow), a subsidiary of China Resources Enterprise, Limited and a joint venture with SABMiller plc has entered into an agreement with Heineken Asia Pacific Breweries (China) Pte Ltd. to acquire a 49% equity stake in Jiangsu Dafuhao Breweries Co., Ltd and a 100% equity stake in Shanghai Asia Pacific Brewery Company Limited from Heineken-APB. The total cash consideration for the acquisitions amounts to about RMB870 million. Jiangsu Dafuhao Breweries is a Sino-foreign joint venture which is 51%-owned by Nantong Fuhao Alcohol Industry Co., Ltd and 49%-owned by Heineken-APB.

With its major beer brand “BBOSS”, Jiangsu Dafuhao Breweries has a strong market position in the central part of Jiangsu Province. It owns five breweries in Jiangsu Province with an annual production capacity of over 450,000 kiloliters.

Shanghai Asia Pacific Brewery produces one of the most famous beer brands in Shanghai, “REEB”, which is its major beer brand. The production plant of Shanghai Asia Pacific Brewery has an annual production capacity of 250,000 kiloliters. CR Snow is a market leader in Jiangsu Province with sales volume of 660,000 kiloliters in 2010. Its major market is mainly located in the southern part of Jiangsu Province. The acquisition of an equity stake in Jiangsu Dafuhao Breweries has given a boost to the development of CR Snow's business in the entire Jiangsu Province. Meanwhile, benefiting from Shanghai Asia Pacific Brewery's extensive distribution network, CR Snow's competitive advantage in Shanghai will be enhanced and its leadership in China as a whole will be strengthened.

CR Snow is a market leader in Jiangsu Province with sales volume of 660,000 kiloliters in 2010. Its major market is mainly located in the southern part of the province. Through its acquisition of a 49% equity stake in Jiangsu Dafuhao Breweries, CR Snow will be able to develop with Jiangsu Dafuhao Breweries a business platform that brings together the strengths of both companies so as to create greater returns for shareholders.

CR Snow is a market leader in Jiangsu Province with sales volume of 660,000 kiloliters in 2010. Its major market is mainly located in the southern part of the province. Through its acquisition of a 49% equity stake in Jiangsu Dafuhao Breweries, CR Snow will be able to develop with Jiangsu Dafuhao Breweries a business platform that brings together the strengths of both companies so as to create greater returns for shareholders.