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Universal Beverages outlines Chinese hopes

By Neil Merrett, 23-May-2007

Related topics: Processing, Product & Supplier news in Asia Pacific

United Beverages, India's largest brewer, this week stressed the importance to its operations of breaking into the Chinese alcohol market .

Following the group's formal announcement earlier this month that it was entering the country, company chairman Vijay Mallya, told local press that the opportunities being presented to processors within China could not be missed.

In recent years, Chinese demand for spirits has been booming, even if the sector stills lags behind the surging demand for wine and beers.

Mallya added the company expects to launch five of its most popular brands onto the market, including the popular Bagpiper Deluxe brand of whisky.

Mallya added that the company would leverage its experience in India to tackle the challenges of meeting Chinese consumer demand as both are emerging markets.

"I believe the taste of Chinese people and Indian people are very similar," he told the China Daily newspaper. "Our products will be enjoyed, especially the first five products we are going to launch."

Universal Beverages will also aim to be one of the first foreign groups to bottle its products locally to ensure its supply chain is in line with the demand.

"When you go to a market as important as China, you have to prepare to do whatever it takes... and USL is in China for the long-term," Mallya added.

However the company will face tough competition in its desire to break China as its move has also been matched by some of its major rivals.

Just last week, Moët Hennesy revealed it had acquired a majority stake in Chinese group Wen Jun Distillery as part of moves to expand its global premium spirits and wine brands range.

Christophe Navarre, president of Moët said that he hoped the move would allow the group to further develop the spirits market in the country to boost its potential.

China's spirits market is expected to grow by about 44.6 per cent to $28.6m (€19m) in the 10 years to 2010, according to analyst Datamonitor.