China Resources Beer (Holdings) Company has agreed to acquire a stake of 55.19% in Guizhou Jinsha Jiaojiu Winery Industry Co., for a total consideration of $1.68 billion.

The transaction is expected to allow China Resources Beer to expand its baijiu business in the country.

Based in Guizhou, China, Guizhou Jinsha Winery has acquired a high-quality baijiu brand image in the domestic market with more than 70 years of experience. It is involved in the design, production and distribution of Chinese baijiu products.

The company mainly distributes its sauce-flavor baijiu products under the brand series of “Zhaiyao” and “Jinsha Huisha”.

For the year ending 31 December 2021, Guizhou Jinsha Winery reported a net profit of $180 million.

Hou Xiaohai — China Resources Beer Executive Director and CEO said, “The acquisition of Guizhou Jinsha Winery is a key initiative of the Group’s strategic plans for the baijiu market. It reflects the results of the Group’s focus on its alcoholic beverages business, as well as its efforts to facilitate the cooperation between the central and local governments, and to expand its core business.

“The acquisition also represents our steady progress in the development of non-beer alcoholic beverages. Guizhou Jinsha Winery has a long brewing history and cultural heritage which features unique sauce flavor, presenting extraordinary development potential.

“We believe the Company can revitalize Guizhou Jinsha Winery through talent team building, brand development, channel networking and lean management.”

The stake acquisition in Guizhou Jinsha Winery is part of the strategy of China Resources Beer to diversify its product mix of alcoholic beverages and identify new sources of revenue.

The transaction is subject to approval from the relevant government authority and the signing of additional required documents.

Hou Xiaohai added: “Looking ahead, we will integrate our existing baijiu business resources and further strengthen the Group’s competitiveness and brand value within the Chinese baijiu industry through a ‘dual empowerment’ model to develop both beer and non-beer businesses at the same time. Meanwhile, we will continue to stride forward to our strategy of ‘winning at premium segment’, and uphold our mission of ‘leading industrial development, brewing a better life’!”

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