US group Anheuser-Busch builds beer factory in Foshan, China

18 April 2007

St. Louis, United States, 18 April – US beermaker Anheuser-Busch said Tuesday in St. Louis that it planned to build a beer factory in Foshan in order to meet growing demand by the Chinese market for Budweiser beer.

The group plans to double beer distribution in China over the next five years by expanding to 100 new cities with a population of at least 1 million people.

In a statement, the group said that construction of the new Budweiser Brewing Foshan Company Ltd. Would supply the Chinese market.

In 2006, the Chinese beer market grew by almost 15 percent, the third year running with two-digit growth.

The factory is expected to be concluded by the end of 2008, be built on a 249,000 square meter plot and will cost US$63 million and production of 2.6 million hectoliters per year.

In 1995 Anheuser-Busch built its first factory in China, in the city of Wuhan and, due to strong demand and support from the local government, the factory saw its production rise four-fold to 4.2 million hectoliters.

Headquartered in St. Louis, Missouri, Anheuser-Busch is the main beermaker in the united States and has a market share of 48.4 percent, mainly through two brands, Budweiser and Bud Light.

The city of Foshan is located in the center of Guangdong province, in the Pearl River Delta and is less then 50 kilometers from Guangzhou and other cities in the province and around 100 kilometers from the special administrative regions (SARs) of Macau and Hong Kong. (macauhub)