News
No.11459 June 5, 2012
On June 5th (Tuesday), Suntory (China) Holdings Co., Ltd. (Head Office: Shanghai, China; President: Shozo Shirai), a wholly owned subsidiary of Suntory Holdings Limited, entered into a contract to jointly establish a beer business company and sales company in Shanghai and Jiangsu with the Chinese beer company, Tsingtao Brewery Company Limited (Head Office: Tsingtao, Shandong Province, China; President: Zhiguo Jin; hereafter, Tsingtao Brewery). Suntory China and Tsingtao Brewery will each finance 50% for both the business company and sales company.
The Suntory Group entered the beer business in China in 1984 and the soft drink business in 1995. Sales of whisky such as HIBIKI and YAMAZAKI followed, and in addition to joining the Huangjiu (Chinese yellow rice wine) business in 2005, in 2010 Suntory acquired the China-based wine importer, ASC Fine Wines Holding Ltd. to expand into the growing wine market in China. Since 2011, Suntory has been actively developing business through a new structure that integrates the liquor and soft drink business. Within that structure, development of the beer business has been centered in Shanghai and Jiangsu, and Suntory is particularly proud to have captured the highest share of the beer market in Shanghai.
On the other hand, Tsingtao Brewery was established in Tsingtao, Shandong Province in 1903 and is one of the oldest beer companies in China. The key brand, "Tsingtao Beer" is sold throughout China and continues to grow each year.
With the shared intention of both companies to further strengthen the beer business in Shanghai and Jiangsu, they will jointly establish a beer business company and sales company specifically for those areas. The joint business company will handle matters such as business planning, brand and product development, and production, while the joint sales company will undertake matters including marketing, sales, and distribution.
In addition to expanding the product lineup that includes SUNTORY and Tsingtao, by establishing these two new joint ventures, the aim is to achieve an efficient production and distribution system, and a sophisticated sales distribution network in Shanghai and Jiangsu.
Details of the new joint venture will be determined through discussion between the two companies.
<Suntory (China) Holdings Co., Ltd.>
<Tsingtao Brewery Company Ltd.>
