Entering the dragon's lair
China is not only the largest beer market and one of the world’s fastest growing markets. It is also the brewers’ litmus test of their emerging market business models, says WestLB Panmure, London, in a recent market report. So far - and by all accounts - only SABMiller generates positive EBIT. Despite this, many European brewers, with the exception of Scottish & Newcastle and Heineken, which is promising an investment soon, have made acquisitions in China during the first six months this year. In the first half of 2003 they have spent USD480 million for a piece of the action - or 92% of the industry’s total acquisition value. Total foreign investment amounts to over USD1 billion. These factors indicate to them that beer demand could grow by up to 8% annually by 2007.27/litre).5 million.K..
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