China's Packaging Machinery Market Research Report - PMMI

4.2.2 Foreign-funded enterprises
The top ten brewing companies in the world have found partners in China. At
present, 72% of the domestic beer producers with an annual output above 50
thousand tons have a joint venture background. By the end of 1998, there were 46
foreign brands in the beer industry and 95 joint ventures, claiming 17.2% of brands.
Their output runs as high as 32.9% of the total, of which foreign brand beer is 4.3%,
or 803 thousand tons.
Some really powerful state -owned beer enterprises are taking advantage of their
name brands to merge or take over regional beer companies. As shown by the China
National Statistic Bureau, Tsingtao Beer Group now has 24 subsidiaries in 9 cities or
provinces in China as a result of the expansion over recent years.
The output of four leading Chinese beer enterprises as of 1999:
Name Output (Unit: 10 thousand tons)
Tsingtao Beer Group 105
Yanjing Beer Group 103
Guangzhou Zhujiang Beer
Group
41
Sichuan Lanjian Beer Group 40
On the whole, many expanded or growing large beer companies will need a large
quantity of new bottling or canning machinery to cater to the intensified competition.
This is despite the fact that the average growth rate for China’s beer industry will be
6.4% or so, and remain a low, yet stable, rate in the years to come, experts with
China National Food Industry Association estimate.
4.3 The Dairy Industry
The Chinese dairy industry has a relatively longer history. The industry boomed after
1978, with the annual output reaching 525.7 kilo tons in 1995. By 1996, there were
more than 500 dairy processing factories in China; approximately 50 were foreign
invested or joint ventured companies.
The top five dairy product-producing provinces are Heilongjiang, Hebei, Zhejiang,
Inner Mongolia, and Shandong. Heilongjiang is the largest producer.
The output of the five largest dairy product supplying provinces in 1999 are listed
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