Costing 400 million yuan (US$61 million), the new brewery in Huangpu will produce one million hectolitres per year. This is APB’s third brewery in mainland China, after Shanghai and Hunan.
Beer brands Tiger, Heineken and Anchor are being produced for the premium beer market, which has much higher profit margins.
Senior executives describe this as very much a long-term strategy, eyeing the higher margins afforded in the currently smaller, yet fast-growing, premium segment.
Chief executive Roland Pirmez said the new brewery complements and sustains APB’s premium brand strategy. He added that they see more consumers in China leaning towards high-end and premium beers, and that the new brewery would meet this demand.
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