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(Yicai Global) Feb. 21 -- Japan's oldest beer brand is officially returning to the Chinese market after a ten-year hiatus with Anheuser-Busch InBev, the world's largest brewer, acting as distributor.
AB InBev will be the exclusive distributor of Sapporo Beer in China for the next 10 years, state-backed Jiemian News reported the Belgian firm as saying, adding that the beer will be available in cans, bottles and on tap.
The Tokyo-based firm aims to sell one million cases of beer in China by 2022 with a 330-milliliter bottle priced at around CNY10 (USD1.5), CNY5 higher than domestic beer on average.
Sapporo is Japan's third-largest beer group in terms of shipments behind Asahi Breweries and Kirin Brewery, which have already gained footholds in the market. The Japanese brand has been the most popular Asian beer in the US market for around 30 years. It also performs well in Southeast Asia and Europe.
The beer was once available in China as an imported good in the 1980s before Sapporo set up a Chinese joint venture in 2000 to produce it locally. The brewer quit the market in 2009 as it ran up losses and its products failed to gain ground in the country
China's beer market has changed radically since then with Chinese consumers increasingly favoring imported beer. China's beer imports increased tenfold in the six years between 2011 to 2016. Beer imports for the first 11 months of 2018 have surpassed those registered over 2017.
New middle-class consumers located in urban areas are the main target for Sapporo as they have accrued knowledge of high-end beer and are willing to try new brands, according to Fred Freire, AB InBev's China president. Chinese consumers are increasingly curious about a beer's ingredient, origin and history when choosing beer, which will boost Sapporo's competitiveness, he added.
Editor: William Clegg