• by Nina Lentini  @Nina_Lentini, December 18, 2006

In what SAB Miller says is the first move by an international brewer into Inner Mongolia, the company's joint venture in China is buying brewing operations of Mengyuan Fine Wine & Brewery Co. Ltd. for $4.7 million in cash as well as the brewing assets of Shanxi Yueshan Brewery Co. Ltd. in northern China for $17.7 million.

China Resources Snow will produce its popular Snow brand for a Chinese market that one brewer has forecast will represent 80% of global growth in beer sales by 2010. Sales of Snow in the northern China region over the first six months of 2006 have more than doubled the total sales from all of 2005. Sales of Snow in the Inner Mongolia region in the first half of 2006 have topped all of the brand's sales in all of 2005.

The Shanxi province is located to the east of the Yellow River, with a population of about 34 million. The Inner Mongolian autonomous region borders the Shanxi Province and is the third-largest region among Chinese provinces and autonomous regions, with a population of 24 million people.

SABMiller said that despite a relatively low population level, Inner Mongolia has a favorable beer market, as beer consumption per capita is high and the population is relatively concentrated in its major cities.

London-based SABMiller is the parent company of Miller Brewing Co.