China: SABMiller planning double-digit sales growth in China

SABMiller is expecting its beer sales in China to grow by double-digit percentages in coming years, and intends to halt its recent acquisition spree to focus on growing the expanded business.

London-based SABMiller operates in China via a 49-% owned venture called China Resources Snow Breweries Ltd, which runs 41 breweries across the country, Reuters reported on March 29.

"The bulk of our acquisitions are finished. We are not going to acquire another 40 in the next 10 years," Andre Parker, Managing Director for SABMiller Africa and Asia, told Reuters in an interview in Hong Kong on March 28.

"Our expectations of the Chinese beer market is it will continue to grow between 5 and 8 % per annum over 5 to 10 years. We would expect to be ahead of it We would probably like to target double-digit growth in revenue” Parker stated.

Africa and Asia account for 13 % of the world number-two brewer's total earnings before interest and tax, as of the end of September 2005. China comprises the lion's share of an Asian operation that extends to fellow emerging market India.Global brewers have been rushing into China, the world's biggest beer market by volume but a highly fragmented one with about 400 brewers.

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