HONG KONG — Tsingtao Brewery, one of China’s oldest and most prominent beer manufacturers, is expanding into the traditional yellow wine sector amid a broader consumer spending slowdown.
The company announced Wednesday evening that it has reached an agreement to acquire Shandong Jimo Yellow Wine Factory from Hiking Group. Under the terms of the deal, Hiking Group directly holds 45.45% of the yellow wine producer, while the remaining stake is owned by its subsidiary, Shandong Lujin Import and Export Group.
The acquisition is valued at approximately 665 million yuan (about $92 million), though the final price may be adjusted based on the subsidiary’s profit or loss during the period leading up to the transaction’s completion. The deal is expected to be finalized within 120 days.
The move signals Tsingtao’s strategic push to diversify its product offerings in response to shifting consumer preferences and economic headwinds affecting the beverage industry.
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