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Anheuser-Busch Says January-September 2006 China Sales Up 20 pct

Source: Reuters
29/01/2007

Beijing, Jan 29 - Anheuser-Busch Cos. Inc., the largest U.S. brewer, said on Monday that China sales volume grew 20 percent in January through September last year compared with the year-earlier period.

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Stephen Burrows, chief executive of Anheuser-Busch International, also told Reuters in an interview the company was focusing on organic growth in China, not acquisitions.

"Certainly, it is organic growth in China," said Burrows, who travels to China about once a month. The company has invested about $1.3 billion in the mainland to date, helping China become Anheuser-Busch's largest overseas market.

Burrows said he had met most of the brewers in China over the past few years, but is not currently in discussions for a possible acquisition.

"I have met them but that doesn't mean we are trying to acquire them," he said.

Anheuser-Busch's international business makes up 5-10 percent of the company's total sales, but is growing much faster than the U.S. domestic market.

But the volume of beer shipments to U.S. wholesalers rose 1.1 percent during the third quarter, lagging far behind the 5.9 percent volume rise in Anheuser-Busch's international unit.

"Through nine months, our (China) business has grown about 20 percent," he said.

China, the world's largest beer market by volume, is a key battleground for rivals such as Anheuser-Busch and Britain's SABMiller Plc's as the average Chinese downs only 24 litres of beer a year, about a third of the U.S.'s 80 litres.



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