Jun. 6, 2012 (China Knowledge) - Suntory (China) Holdings Co Ltd, a wholly owned subsidiary of Suntory Holdings Ltd, has agreed to set up a beer business joint venture and a sales company in Shanghai
Province with Tsingtao Brewery Co Ltd<600600
>, a major beer brewery in China.
Suntory Holdings said in a statement published on its website that Suntory (China) and Tsingtao Brewery will each hold a 50% stake in the two JVs.
The establishment of the two JVs is expected to help the Japanese company achieve an efficient production and distribution system, and a sophisticated sales distribution network in Shanghai
, as well as expand its product lineup.
The Suntory Group entered the beer business in China in 1984 and the soft drink business in 1995. Since 2011, Suntory has been actively developing business through a new structure that integrates the liquor and soft drink business.