Tsingtao to cut costs due to profit squeeze

Tsingtao Brewery said it would reduce costs to maintain profit margins, Reuters reported. China’s second-largest brewery said that while it would raise the prices of some of its premium brands, it would place an emphasis on improving efficiency. "Pressure from rising costs is a good opportunity for Chinese industry to become more efficient, weed out the weak and let the strongest survive," said Tsingtao Chairman Jin Zhi Guo. The company in April released its earnings report for the second half of 2007, which showed higher taxes and barley prices offsetting strong sales. American beer maker Anheuser-Busch, which recently agreed to be acquired by Belgian brewer InBev, owns 27% of Tsingtao.