News: Anheuser-Busch to enter Indian beer market

(BL 23/02/2007) Houston - Anheuser-Busch International Inc. has entered into a joint venture with Crown Beers India Ltd in a move that will give the US' largest brewer entry into the Indian beer market. The 50:50 joint venture will operate under the name Crown Beers India Ltd and includes a new state-of-the-art 5,00,000-hectolitre brewery in Hyderabad, which will be completed in March this year. "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," August A. Busch IV, President and Chief Executive Officer of Anheuser-Busch Cos. Inc, said. "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-maker of Budweiser beer and Crown Beers will each have 50 per cent 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. Budweiser is one of the most popular beer brands in the world and the joint venture combines Crown's local business experience with Anheuser-Busch's global marketing a and brewing expertise, said K.V.D. Prasad Rao, Joint Managing Director, Crown Beers . While India ranks low among the world beer markets at 8.2 million hectolitres, it has experienced a compounded annual growth rate of 8 per cent for the past five years.