E-Malt.com News article: 2528

China: Kirin Brewery Co., Ltd. (Koichiro Aramaki, President) affiliate Zhuhai Kirin President Brewery Co., Ltd. (Fujiki Miyahara, Representative; Zhuhai, Guangdong Province, China) announced on April 19 the launch of Haizhu draft beer, a new beer developed for the Chinese market. The product will be released in select areas* of Guangdong Province, from mid-April 2004, and will be available in 640ml and 330ml bottles. This product was made possible through technological synergies in brewing and quality management systems for draft beer with Kirin Group companies in Japan, and represents Kirin's first draft to be sold in China.

The Pearl River Delta region of southern China, Zhuhai Kirin's principal sales area, is showing a high rate of economic growth, and demand for beer is expected to rise substantially. Along with the growing economy, the number of customers willing to pay slightly more for a better quality product is increasing, and there is greater interest in draft beer, which is smooth and has a progressive, premium image.

Kirin's new Haizhu draft beer is a draft beer with a fresh taste and rich aroma, brewed with carefully selected Saaz hops imported from the Czech Republic and high quality water. Kirin has conducted a thorough study of the local drinking culture and preferences to create a beer that is not too bitter, and has an easy-drinking taste. In order to allow drinkers to enjoy high-quality draft beer relatively easily, the sales price has been set at mid-range, between standard and premium price ranges.* (*There are three beer price bands in China. More than five RMB for a large bottle is premium, two to three RMB per large bottle is standard, while less than two RMB is low end. As of April 15, 2004, RMB1=JPY13.12).

Zhuhai Kirin maintains a brewery at its corporate headquarters, where it manufactures and sells the brands Haizhu, Kirin Ichiban and Macao, principally in Guangdong Province. The launch of this new product, Zhuhai Kirin's first draft beer, will expand its product lineup, and significantly strengthen its local brand business.

The beer market in China is growing each year, with total beer consumption in 2002 totalling 23.5 million kiloliters, making it the second largest market in the world (source: Kirin). Kirin, in accordance with its corporate principles of focus on customers and quality, and to allow drinkers to enjoy high quality draft beer, has been sending its employees to China for the last eight months to provide technical support in the areas of draft beer brewing and quality control, making this new draft beer possible. Kirin will continue with its proactive efforts to introduce brewing technologies to China in its pursuit of Group synergies, in order to introduce new products, and improve the quality and marketing of local brands.

The Kirin Group has been aggressively building a strategic global network through expansion and sale of Kirin brand beer overseas, along with strategic alliances with overseas companies through such means as capital injections and mergers. As restructuring continues in the global beer industry, Kirin is focusing on markets in Asia and Oceania, considering the prospect of new alliances as it strengthens its foundations and works to improve profitability.


23 April, 2004