Prepared Foods December 12, 2005 e-newsletter

InBev SA, a publicly listed brewer in Belgium, agreed to acquire 100% stake in Fujian Sedrin Brewery Co. for approximately RMB 6.1 billion ($750 million). InBev had outbid Dutch brewer Heineken NV and Anheuser-Busch Co. Inc for the ownership of Fujian Sedrin Brewery.

Based in Putian, Fujian, Fujian Sedrin Brewery is one of the largest beer brewers in China, with a capacity of over 720,000 tons of beer in 2004. The company's brands include Sedrin Ice Beer and Sedrin Pure Draft Beer.

According to InBev, the beer market in China is the largest in the world by volume even though it remains fragmented. Given the low beer price, the Chinese beer market offers thin profit margins.