Heineken seeks control of China brewery

by: Ezra Marbach

Heineken, the world's third-largest brewer, is reportedly in talks to buy control of China's Kingway Brewery Holdings, as it competes with SABMiller and other global rivals for expansion in the world's biggest beer market.

The world's top brewers have been trying to expand in China as sales growth at home stagnates. While China's 1.3 billion people each consume an average of 18 liters of beer a year (compared with as much as 80 liters per head in Europe), brewers are betting that growing incomes and a move toward embracing Western tastes will lead to greater beer consumption.