Asia's beverage sector fizzes despite downturn(2)
Meanwhile, Heineken, the world's third-largest brewer, in May reached a deal with India's largest brewer, United Breweries, to bottle and distribute its brands in India.
In fact, eight out of the top 10 brewers in China have some level of foreign ownership, according to Euromonitor.
Analysts say there is a strong correlation between alcohol consumption and industrial output growth, boding well for brewers as the economy recovers.
China's Snow beer is now the world's second-biggest beer brand by volume, replacing Anheuser-Busch brands, Bud Light and Budweiser. It is brewed by SABMiller and its Chinese partner China Resources Enterprises.
"China and India will take the lion share of volume due to huge population growth but opportunities exist in other markets like Vietnam and Thailand," added Kuiper.
The Philippines, Singapore, Thailand and Vietnam all saw buoyant beer sales in 2008.
Singapore, said analysts, has single-handedly defied the gloomy environment of mature markets such as the UK and United States with drinkers drawn to outlets such as microbreweries.
Despite Singapore's worst ever recession, foreign beer companies are still moving in.
"People will drink anyway if you offer the right beer," said Romtham Setthasit, the director of Thailand Tawandang Microbrewery's Singapore operation, which opened this month.
Volume growth in Asia-Pacific beer markets is expected to outstrip growth in world markets in coming years, with forecasts for annual growth of 7.5 percent in 2009-10 compared with 4.1 percent growth globally, according to Euromonitor.
ON THE PROWL
Japan's Kirin, the maker of Lager Beer, eyes the ASEAN region for future growth and is in talks with the Philippines' San Miguel Brewery's parent company to buy its overseas beer business.
Kirin bought a 48 percent stake in SMB earlier this year and snapped up Lion Nathan, Australia's second biggest brewer, for $2.5 billion.
"We have made good progress in Oceania, so the next is ASEAN and mainland China," said Makoto Ando, head of Kirin's investor relations. "ASEAN has a big growth potential," he said.
Japanese brewer Suntory Holdings, maker of the popular "Premium Malt" beer, says it is mulling a merger with Kirin, a deal that would create one of the world's largest beverage firms.
In Australia, North America's Molson Brewing last year took a five percent interest in Foster's, Australia's largest brewer.
