The strategic investment project of Tsingtao Beer Stock Company Limited—a signing ceremony between Tsingtao Beer and Jiahe Beer—was held in Taiyuan of North China’s Shanxi province. According to the agreement, after getting the assets of Taiyuan Beer, Tsingtao Beer will be able to expand its yearly capacity to 40 million liters.

In recent years, Tsingtao Beer took a larger share of the Shanxi beer market. But since it has no brewery house, Tsingtao Beer bears high transportation expenses and cannot provide fresh beer in time. According to the principle, "First market, then factory," Tsingtao Beer now may face a shortage of capacity in the Shanxi market.

After the merger and acquisition, the classic skill of Tsingtao Beer will be put into this brewery house. Advanced equipment will be bought, all of it low-carbon and environmentally friendly. Tsingtao Beer will also implant its unique management and culture into this new factory.

In the "post-crisis" era, Tsingtao Beer is speeding up the expansion of its market shares.

In January, July, August and September, many branches of Tsingtao Beer relocated to expand their scale and capacity.

According to some analysts, this round of expansion of Tsingtao Beer is based on the market, highly stressing the principle "first market, then factory,” and reflects the expansion style with firm foundations.

By Li Jing