Anheuser-Busch International Inc. and Crown Beers on February 22 announced both companies have agreed to a joint venture to brew, market and distribute Budweiser and other brands in India.
The joint venture will operate under the name Crown Beers India Ltd., and includes a new 500,000-hectoliter brewery in the southern city of Hyderabad. The state-of-the-art brewery will be completed in March 2007.
"International expansion is a key part of Anheuser-Busch's growth strategy, and while India is a small beer market today, it is growing rapidly and has tremendous long-term potential," said August A. Busch IV, president and chief executive officer of Anheuser-Busch Companies Inc. "This joint venture with Crown brings the experience and skills of both companies together with a world-class brewery to introduce Budweiser to beer drinkers in India."
Both Anheuser-Busch and Crown Beers will have 50 percent ownership of the joint venture and will collaborate on all local management, marketing and sales decisions. Crown Beers India Ltd. is expected to employ more than 150 people. Terms of the agreement were not disclosed.
While India ranks low among the world beer markets at 8.2 million hectoliters, the country has experienced a compounded annual growth rate of 8 percent for the past five years. The strong Indian economy, growing at 9 percent annually, a growing middle class and a young population with 60 percent under age 30, have contributed to this growth.
"Now is an optimal time for Anheuser-Busch to establish itself in India," said Stephen J. Burrows, president and chief executive officer of Anheuser-Busch International. "This partnership will enable Budweiser to thrive as India's beer market continues to grow."
An Anheuser-Busch brewmaster will oversee local production of Budweiser at the Hyderabad brewery, assuring Budweiser in India has the same crisp, distinctive taste enjoyed by consumers around the world.
"The Hyderabad brewery was designed to uphold Anheuser-Busch's high standard of quality for brewing Budweiser," said Srikanth M. Reddy, joint managing director. "Together, the brewery and brand will be symbols of excellence throughout India."
Based in St. Louis, Anheuser-Busch is the leading American brewer, holding a 48.4 percent share of U.S. beer sales. The company brews the world's largest-selling beers. Anheuser-Busch also owns a 50 percent share in Grupo Modelo, Mexico's leading brewer, and a 27 percent share in China brewer Tsingtao, whose namesake beer brand is the country's best-selling premium beer brand. Anheuser-Busch ranked No. 1 among beverage companies in FORTUNE Magazine's Most Admired U.S. and Global Companies lists in 2006.
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