Broo (ASX:BEE) has crossed a major milestone by commencing the production of Broo Premium Lager in China along with its Chinese partner Jinxing Beer Group.
China’s beer market is the largest in the world with sales volume exceeding 5 billion cases of beer per annum.
Jinxing’s distribution network is one of China’s largest and provides Broo with an enormous opportunity to capture a lucrative percentage of the Chinese market.
Jinxing has an annual production capacity of 2 million tonnes of beer (equivalent to 200 million cases of beer).
The agreement with Jinxing provides Broo with a platform to compete with the largest International brands currently available in China.
It is worth noting that companies such as Fosters have been unsuccessful in China – maybe because they attempted to act on their own.
The final packaging design for Broo Premium Lager in China has been slightly altered from the Australian format to better suit the Chinese market and further enhance its iconic Kangaroo Logo.
The alcohol volume has also been reduced from 4.6% to 4% to represent the changing trend in Chinese consumer preferences.
Last month, Broo acquired 15 hectares of Industrial land in Ballarat, Victoria for $2.16 million to develop a major brewery facility.
The planned production capacity of up to 480 million bottles per year makes it one of Australia’s largest breweries.