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Asahi Breweries enters Chinese milk industry

(Xinhua)
Updated: 2008-05-05 14:51

Asahi Breweries Ltd, Japan's largest beer producer, is targeting the Chinese milk products market with an all-around manner with its new milk factory being under construction in China's Shandong Province, company officials told Xinhua Saturday.

A milk company, which has been building the factory, was established in Laiyang city, Shandong Province, in April. It's the first time for a large-scale Japanese corporation to enter the Chinese integrated milk business in the fields of both production and sales.

The company is owned 90 percent by Asahi. Business of the new company will involve the entire process from raising cows to marketing, while products will be sold to major cities such as Beijing, Shanghai and Qingdao under Asahi's proprietary label, according to Asahi Breweries officials.

Price of the Asahi milk products will be about 50 percent to 100 percent higher than average local milk, and sales in the first year will be targeted at 1 ton per day, they said.

The products will be launched onto the market prior to August 8, the opening day of the Beijing Olympics, they added.