BREWERS' GUARDIAN: MGD arrives in China – finally

MGD arrives in China – finally
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Larry Nelson on 16 January, 2012 03:30:00
 
SABMiller announced today that China Resources Snow Breweries (CR Snow) is to
trial market in Zhejiang province Miller Genuine Draft from the United States, a
launch that has been under consideration for several years.
MGD is to be initially available in Hangzhou and Wenzhou, from 16th January. CR
Snow, the SABMiller-China Resources Enterprise Ltd joint venture, will be the
exclusive importer.
Ari Mervis, SABMiller managing director, Asia Pacific, commented, “This is an
exciting opportunity to introduce one of our international brands into the
fast-growing premium segment in China in a way which takes advantage of CR
Snow’s strong market position in the region.”
SABMiller has had a launch of MGD in the Chinese market under consideration for
several years. In 2004, André Parker, then SABMiller managing director, Asia &
Africa, told Brewers’ Guardian that capacity might be added in China to brew
one of its international brands, either Pilsner Urquell or Miller Genuine Draft.
Parker added then that MGD had an edge in the multinational’s calculations
because, “it is probably closer to the profile of Chinese beers which tend to
be lighter and a bit sweeter.”
Today that assessment of the preferences of the Chinese palate is more accurate
than ever. In 2009, at a conference organised by VLB in Beijing, Xiao Derun,
vice president of the China Alcoholic Drinks Association, expressed concern over
Chinese brewers reducing bitterness and colour in their beers.
CR Snow was established in 1993 with SABMiller becoming a JV partner with CRE
the following year. It is the largest brewer in China as measured by volume; in
2010 it operated more than 70 breweries with combined beer sales in excess of 92
million hectolitres.