Shanghai Jinshan District Government announced today that Suntory (China) Investment Co., Ltd. has recently acquired 74% equity of Shanghai Eastern Sea Beer Co., Ltd., a famous brewery company located in Zhangyan County of the district.  After the acquisition, Suntory has become the largest shareholder of Eastern Sea Beer. 

Suntory Beer is considered a top brand within the brewery industry, enjoying the highest level of consumer recognition in Shanghai and neighboring cities.  As Eastern Sea has maintained good market coverage on the outskirts of Shanghai, Suntory intends to utilize this opportunity to penetrate the markets of neighboring counties and districts of the city.

Suntory is listed in the ‘Global Top 500’, ranking among the top 10 beer brewers.  It is also the first company to produce light beer in Shanghai, which has won great recognition.  According to official statistics of a recent survey, Suntory Beer has maintained a high growth rate at an average of 32% per annum since its inception.  In 2004, Suntory produced and sold more than 360,000 tons of beer in eastern China, the highest record in Shanghai and Jiangsu Province, acquiring 70% of the general beer market share in Shanghai. Meanwhile, Eastern Sea has a capacity to produce 200,000 tons of beer per year. In 2004, the company produced and sold about 107,000 tons, claiming the biggest market share in the outskirts of Shanghai.  The major subsidiaries of Eastern Sea include: Eastern Sea, Golden Field, Eagle.  Following the successful acquisition, Suntory’s production is likely to exceed 530,000 tons this year in the eastern China market.