SABMiller, the world’s second-largest brewer by market value, is looking to take over small scale breweries in an ongoing bid to increase its market share in China. Andre Parker, the company’s Africa and Asia managing director, said there were no plans to invest in Beijing-based giant Yanjing beer. “Our objective is not to dominate the Chinese brewery market,” he said. “There’s no pride in being the biggest player in China. Making the product profitable is more attractive.” SABMiller is targeting brewers with production costs of US$25-30 per hectoliter and expects consolidation in the Chinese beer market to boost profitability. Through its 49% stake in China Resources Breweries, which produces Snow beer, SABMiller controls 14% of the market. Tsingtao leads the way on 16%.
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