OREANDA-NEWS. August 05, 2011. China Resources Snow Breweries Limited („CR Snow'), a subsidiary of China Resources Enterprise, Limited (or „the Company') (HKEx: 00291) and a joint venture with SABMiller plc, announced that it has acquired remaining 55% equity stake in Hangzhou Xihu Beer Asahi Co.,Ltd. („Hangzhou Xihu Beer?) and remaining 25% equity stake in Zhejiang Xihu Beer Asahi Co. Ltd. (Huzhou Brewery) for a total cash consideration of RMB300 million. Hangzhou Xihu Beer currently owns a 75% interest in Huzhou Brewery. Upon the completion of the acquisitions, Hangzhou Xihu Beer and Huzhou Brewery will become the wholly-owned subsidiaries of CR Snow, further strengthening CR Snow?s leading position in Zhejiang Province, reported the press-centre of CR Snow.

 Shortly prior to these acquisitions, CR Snow acquired 45% stake in Hangzhou Xihu Beer for RMB 268 million on 29 November 2010. The acquisitions made by CR Snow within a year demonstrate its robust development in Zhejiang Province, and this acquisition will further strengthen its overall dominance in Zhejiang Province. The two breweries in Hangzhou and Huzhou have a total annual production capacity of 500,000 kiloliters and a historic sales volume of 120,000 kiloliters.

CR Snow is a market leader in Zhejiang Province with approximately 40% market share and sales volume of over 1,000,000 kiloliters in 2010. CR Snow currently operates six breweries in Zhejiang Province. Upon the completion of the acquisition, CR Snow will have eight breweries in the province, which will further strengthen its competitive edge and its leading position in the market.

Mr. Chen Lang, Chief Executive Officer of China Resources Enterprise, Limited said, “Xihu beer is widely received in the north of Zhejiang Province and has a sound track record and huge growth potential. The acquisitions will not only further strengthen CR Snow?s leading position in China?s beer market, but will also pave the way for the sustainable growth of our beer business. After the acquisition of the remaining stakes in Hangzhou Xihu Beer and Huzhou Brewery, the Group will continue to actively seek and evaluate investment opportunities in order to further expand its businesses, thereby strengthening the leading positions of its core businesses of retail, beer, food and beverage.”

Mr. Ari Mervis, Managing Director of SABMiller Asia, said, “SABMiller is committed to growing its presence in China through its joint venture with CRE. This latest transaction increases our production capacity to serve the thriving Zhejiang province. The cumulative impact of our recent transactions across China supports our confidence in this growing market with strong prospects. CR Snow is putting itself in the best position to tap into the profit pool and widen the gap between the company and its competition.”