China’s top brewer, China Resources Beer, known for its ‘Snow’ beer brand, is planning to diversify into the traditional liquor business as the beer market is shrinking.
Its affiliated unit has recently agreed to acquire a 55.19% stake in Guizhou Jinsha Jiaojiu Winery Industry, a baijiu white liquor producer, for Rmb 12.3 billion (US$1.75 billion) as it seeks to boost its non-beer assets and at the same time become a dominant producer of the larger alcoholic drink segment. According to a company spokesperson, it sees the baijiu category as having a huge growth potential amidst a shrinking beer market.
Jinsha Jiaojiu Winery has developed a ‘reputable brand image’ as well as a successful business for more than 70 years since its establishment, with sales exceeding Rmb 2 billion (US$295.3 million) in the first half of 2022, up 15% from a year ago, while its net profit grew 12% in the same period.
