---
title: "Foreign Capital Takes Turns 'Favoring' Tsingtao Brewery: AB InBev Made 4x in 6 Years, What Will Asahi's 8-Year Vigil Bring?"
description: "Foreign investors have successively held the second-largest stake in Tsingtao Brewery, with AB InBev from 2002 to 2009 and Asahi from 2009 to the present. Asahi may be exiting, and Carlsberg could take over, potentially reshaping China's beer market."
author: "杨伟"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2017-08-05"
language: "en"
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# Foreign Capital Takes Turns 'Favoring' Tsingtao Brewery: AB InBev Made 4x in 6 Years, What Will Asahi's 8-Year Vigil Bring?

> Foreign investors have successively held the second-largest stake in Tsingtao Brewery, with AB InBev from 2002 to 2009 and Asahi from 2009 to the present. Asahi may be exiting, and Carlsberg could take over, potentially reshaping China's beer market.

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These days, if you want to drink imported beer, you might accidentally buy Budweiser or Carlsberg made in China.
A few days ago, Zebra Consumption wrote about dozens of Chinese beer brands controlled by foreign capital. What many people don't know is that even Tsingtao Brewery, the 'second-largest' player, has had foreign capital as its second-largest shareholder for many years.
From the end of 2002 to early 2009, Tsingtao Brewery's second shareholder was the parent company of Budweiser; from early 2009 to the present, it has been Asahi, Japan's largest beer company, which also ranks among the world's top five.
Foreign capital has taken turns showing such favor to Tsingtao Brewery. What have they gained? What have they brought to Tsingtao? Over these 15 years, what changes have occurred in the world and Chinese beer industries?
Besides investment returns and shared channels, foreign capital values more the layout of the Chinese market, the largest and most promising beer market.
The support of foreign giants has brought Chinese beer manufacturers in line with world-class standards in management, technology, and other aspects.
According to media reports, Carlsberg may take over Asahi's stake in Tsingtao Brewery. Carlsberg never misses out, and Asahi, which has been somewhat frustrated in China, may be ready to exit.
If Tsingtao Brewery (600600.SH) really welcomes a third wave of foreign shareholders, it might once again reshape the landscape of China's beer market.
**AB InBev's 1.5 Billion**
**Turned into 6.5 Billion in 6 Years**
Tsingtao Brewery's predecessor, Germania Brewery Qingdao Company, was founded in 1903. Originally a German-British joint venture, it later became an enterprise under the Qingdao State-owned Assets Supervision and Administration Commission.
For a considerable period in history, Tsingtao Brewery was the 'leader' of Chinese beer. In 1993, Tsingtao Brewery was listed on the Hong Kong Stock Exchange and the Shanghai Stock Exchange, becoming the first overseas-listed enterprise from mainland China.
Although originally founded by foreigners, Tsingtao Brewery did not welcome its first foreign director until 2003.
At the end of 2002, Anheuser-Busch, the parent company of Budweiser, held 4.5% of Tsingtao Brewery's shares and reached a strategic cooperation with Tsingtao Brewery.
At that time, the super mergers and acquisitions in the world beer industry had not yet begun, and Anheuser-Busch was the world's largest beer manufacturer.
In China, as the undisputed 'leader' of the beer industry, Tsingtao Brewery's net profit had just exceeded 100 million yuan in 2001.
In 2002, Tsingtao Brewery sold 2.987 million kiloliters of beer, holding a 12.5% share of the Chinese market. That year, its operating revenue was 6.937 billion yuan, and net profit was 231 million yuan.
After gradually increasing its stake through convertible bond conversions, Anheuser-Busch's shareholding in Tsingtao Brewery reached a final 27% in 2005.
Also in that year, Anheuser-Busch appointed its CEO, Stephen J. Burrows, as a director of Tsingtao Brewery. He adopted the Chinese name 'Boluosi' and also became vice chairman of Tsingtao Brewery.
Later, Interbrew and Anheuser-Busch merged to form AB InBev, and the shares were transferred to the new company.
To become the second-largest shareholder of Tsingtao Brewery, AB InBev paid 1.5 billion yuan. In addition, Tsingtao Brewery also emphasized that AB InBev provided support in management and technology.
During the 'AB InBev period' of more than six years, Tsingtao Brewery maintained rapid and stable growth, and AB InBev also reaped substantial rewards.
In 2009, AB InBev disposed of its 27% stake in Tsingtao Brewery for approximately $902 million. Zebra Consumption statistics show that from 2002 to 2008, AB InBev received dividends of 346 million yuan from Tsingtao Brewery.
In six years, AB InBev's 1.5 billion yuan turned into about 6.5 billion yuan (converted at the 2009 exchange rate).
Of course, the most important thing was not money. These six years were a period of integration and preparation for AB InBev's layout in the Chinese market. With the 'synergy' of the 'leader' Tsingtao Brewery, its significance was self-evident.
At least later we saw that in various battlefields, the only one fighting AB InBev was China Resources Snow Breweries.
**Tsingtao and Asahi Channel Mutual Assistance**
Asahi Beer took over from AB InBev as the second-largest shareholder of Tsingtao Brewery against a special industry background.
Around 2000, the world's top ten beer manufacturers were: Anheuser-Busch, Interbrew, Heineken, AmBev, South African Breweries, Miller, Carlsberg, Newcastle, Asahi, and Kirin.
Within a few years, the top five giants (ranked 1, 2, 4, 5, and 6) merged into AB InBev, which naturally involved 'antitrust' issues.
Additionally, perhaps AB InBev was already targeting SABMiller at that time. Letting go of Tsingtao Brewery was a prerequisite for acquiring SABMiller's stake in China Resources Snow Breweries.
In early 2009, Asahi Beer acquired 19.99% of Tsingtao Brewery's shares from AB InBev, while the remaining shares were transferred to Chen Fashu.
In fact, Tsingtao Brewery and Asahi Beer had a long-standing connection. In 1994, Asahi Beer, which had just entered the Chinese market, formed a joint venture with Tsingtao Brewery to establish Shenzhen Tsingtao Asahi Co., Ltd.
Compared with AB InBev, Asahi Beer, as the second-largest shareholder of Tsingtao Brewery in recent years, has tended to act more as a strategic investor.
If during the 'AB InBev period' Tsingtao Brewery had some 'dependence,' then with Tsingtao's growth, by the 'Asahi period,' the relationship between the company and its second-largest shareholder became more equal.
After all, the interaction between Tsingtao Brewery and Asahi Beer has been almost entirely in channels: Asahi Beer uses Tsingtao's channels for sales, and in return helps Tsingtao expand its export business in Northeast Asia.
Speaking of beer exports, Tsingtao Brewery should be the most proactive Chinese beer manufacturer in 'going global,' consistently accounting for half of China's beer exports.
However, the key regions for Tsingtao's exports have changed over the years. In 2003, Tsingtao's exports were limited to North America, Europe, Southeast Asia, and the Taiwan market; but in recent years, Tsingtao has been selling well in Japan, which may be related to the 'strategic alliance' with Asahi Beer.
However, during the 'Asahi period,' Tsingtao Brewery's position faced challenges.
In 2013, China Resources Snow Breweries began to surpass Tsingtao Brewery to become the 'leader' of Chinese beer, and Tsingtao fell to 'second place.' Despite this, Tsingtao's profitability still left China Resources Snow far behind.
From 2014 to 2016, the entire Chinese beer industry declined for three consecutive years. Tsingtao, with the strongest profitability, bore the brunt, with net profit halving in three years.
In addition to these reasons, Asahi Beer's setbacks in the Chinese market may have accelerated its exit from Tsingtao Brewery.
**Source: Zebra Consumption**


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