Sapporo Breweries to Tie Up with Denmark's Carlsberg

Tokyo, July 6 (Jiji Press)--Japan's Sapporo Breweries Ltd. said Monday that it will form a capital and business tie-up with major Danish beer maker Carlsberg Breweries A/S.

The two companies plan to establish a joint venture in Singapore. Sapporo will invest about 643 million dollars in the new firm to snap up a 25 pct stake.

Through the joint venture, the major Japanese brewer aims to boost its beer sales in fast-growing Southeast Asia and Hong Kong, whose beer markets are expected to grow at an annual pace of about 5 pct.

At a press conference in Tokyo, Sapporo President Hiroshi Tokimatsu called the tie-up "a strategic option to realize business growth more speedily and efficiently."

The Japanese company's target is to boost sales of products from its Sapporo Premium Beer brand, exclusive for overseas markets, by 10-fold in volume from the 2025 level by 2035 by leveraging Carlsberg's sales network.

[Copyright The Jiji Press, Ltd.]