The move comes at a time when SAB is actively trying to boost its market share in what is the world’s largest beet market. Just last year the company said that consolidation in China was a long-term trend that would lead to greater industry profitability. According to SAB, China accounted for 43 percent of the total growth in beer volumes in 2011.
The acquisition will give SAB access to Kingway's seven breweries, some of which are located in China's most rapidly developing provinces. "The acquisition of Kingway gives us greater access to high growth and attractive regional markets in China, thereby enhancing China Resources Snow Breweries Limited competitive position," said Ari Mervis, managing director of SABMiller Asia-Pacific.
China Resources Snow Breweries Limited is SABMiller's joint venture with China Resources Enterprise, a conglomerate with interests in retail, beer, and food and beverages in China.
