Japanese brewer Suntory The announced liquidation of two joint ventures beer created in 2013 and held at parity with the Chinese Tsingtao Brewery, preferring to continue with a simple licensing agreement for its brand remains present in China.
“We have reached an agreement on October 18 by which we agree to yield to Tsingtao all shares owned by Suntory in both joint ventures Suntory Tsingtao Brewery and Tsingtao Brewery Sales Suntory,” the company said in a statement.
The actual sale is expected next spring for an undisclosed sum assessed by the press but some 15 billion yen ($ 163 million).
“After the transfer of shares, brand Suntory beer normally continue to be available mainly in Shanghai and Jiangsu Province, through a new production contract and licensed sales,” said a Suntory brief statement, without dwelling on the reasons for this change.
Suntory only adds to prefer its own resources in China on wine, spirits and soft drinks and.
Like his compatriots and rivals Kirin Holdings and Asahi Group Holdings, Suntory looking through an expansion of its activities abroad to reduce its vis-à-vis dependence on a Japanese market decline in beer. Diversification also means an offer increasingly broad thanks to redemptions of foreign companies. Suntory is particularly owner since late 2009 the former French company Orangina Schweppes.
However, the partnership with Suntory Tsingtao was a surprise, the Chinese group is 20% owned by the Japanese rival Asahi.
Tsingtao his side faces competition in its own grounds by the big foreign names while the Chinese beer market has become the world’s first volume, while remaining highly compartmentalized.