Anheuser-Busch Cos. will double the number of Chinese cities in which Budweiser is sold in the next five years as it expands in the world’s biggest beer-drinking market.
A-B will boost Budweiser’s availability to 200 county-level cities in China starting this year, doubling its presence from 100 now, the company said in an
e-mailed statement. Counties are China’s smallest cities.
A-B also is extending its Harbin beer to 33 new cities in China, along with its imported Corona beer from Mexico, to attract drinkers willing to pay more for overseas brands. A-B is focused on China to reduce its dependence on the U.S., where it gets 65 percent of volume and growth has slowed to about 1 percent a year.
The St. Louis brewer and other companies “are trying to move into the emerging markets and really establish their brands,” said Tom Leritz, a portfolio manager at Argent Capital Management in Clayton. A-B is anticipating “the time when people in those regions become wealthy enough … to buy more beer.”
(more…)