Beat them or buy them
US brewer Anheuser-Busch, which owns 91.8% of the Budweiser Wuhan International Brewing Company in Wuhan, China’s 5th largest city, is said to be in exclusive talks with Tsingtao Brewery, China’s largest brewer, to increase its stake
in the company (5% in 2001). Shares in Tsingtao went up 19 per cent at the beginning of August after Tsingtao announced that it signed a pact with Anheuser-Busch to help Tsingtao develop its business in China. China is the world’s largest beer market after the United States and is believed to grow at about 6 per cent each year.
However, returns on investments are either very low or non-existent, write market observers at Canadean, because the market is expensive to supply. For many, going alone has proven very costly and often unprofitable.
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