Tsingtao expands beer portfolio with the acquisition of Jimo Yellow Wine for US$92M

CHINA – Tsingtao Brewery, one of China’s leading beer producers, is set to diversify its portfolio with the acquisition of local rice wine producer Jimo Yellow Wine for CNY665 million (US$92 million).  

The deal will see Tsingtao take full ownership of the grain-based winemaker, acquiring 45.45% equity from international trade firm Hiking Group and the remaining 54.55% from its subsidiary, Lujin Group. 

In a stock exchange filing, Tsingtao stated that the acquisition aligns with its strategy to expand beyond beer and enter new product categories.  

The move “actively expands the cross-industry portfolio of [our] non-beer business, promotes diversified development and brings new development opportunities for the company in the future,” the company said. 

Jimo Yellow Wine is known for its production of huangjiu, or Chinese yellow wine, under the Jimo Laojiu brand. Huangjiu is a traditional fermented alcoholic drink made from grains such as rice, wheat, and millet, and typically contains an alcohol content ranging between 8% and 20% ABV. 

Tsingtao said that the integration of Jimo Laojiu will enrich its existing product lineup, open up new market channels, and offer consumers a wider variety of beverage options.  

The brewer added that the seasonal nature of huangjiu sales could complement its beer business by stabilizing revenue across different periods of the year.  

“Jimo Laojiu and the company’s beer products can form a complementary effect of market sales,” the statement noted. 

In Q1 2025, Tsingtao posted revenue of CNY10.44 billion, marking a 2.9% increase year-on-year, with net profit attributable to shareholders rising 7.1% to CNY1.71 billion. 

Jimo Yellow Wine reported a 13.5% increase in main business income to CNY166.41 million and a 38% rise in net profit to CNY30.47 million in 2024.  

As of December 2024, the company had total assets of CNY908.1 million and net assets of CNY203.04 million. 

Other Chinese alcohol companies are also entering the yellow wine segment. In December, Dynasty Fine Wines Group—backed by Rémy Cointreau—announced a joint venture with Jiu Zhongxian in Jiangsu Province to produce yellow and Chenpi wines, signaling broader industry interest in traditional Chinese alcoholic beverages. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.