Chinese beer major Tsingtao Brewery Co has agreed to purchase traditional winemaker Jimo Yellow Wine for a fee of CNY665m (US$92m).
In a moved designed to diversify its portfolio, the group plans to acquire a 45.45% stake from international trading firm Hiking Group and the remaining 54.55% from its subsidiary, Lujin Group. The brewer said in a stock exchange filing that the move “actively expands the cross-industry portfolio of non-beer business, promotes diversified development and brings new development opportunities for the company in the future”.
Jimo Yellow Wine, which was founded in 1949, produces and sells huangjiu – a form of Chinese yellow rice wine – through its Jimo Laojiu brand.
In 2024, Jimo Yellow Wine achieved CNY166.41m in “main business operations income”, representing a year-on-year increase of 13.5%, according to Tsingtao. As of the end of December last year, Jimo Yellow Wine had total assets of CNY908.1m and net assets of CNY203.04m.
“The company synergises with its existing advantageous markets and resources in terms of brand and product promotion, sales network and channels to further expand market influence,” Tsingtao said in the filing.
“From the peak and off-peak seasons of market sales, Jimo Laojiu and the company’s beer products can form a complementary effect of market sales, build a cross-category product combination with stronger market competitiveness and open up new growth points while consolidating the market position of the company’s traditional products and inject new momentum into the company’s development.
“Through the acquisition, it will further expand the company’s products and business areas, strengthen the company’s ability of sustainable development and promote the company’s high-quality development, which aligns with the company’s long-term development and the interests of all its shareholders.”
In February last year, Tsingtao transitioned the UK responsibilities for its namesake lager brand to LEC Beverages Group.
