Li Jiang city has a booming tourist industry due to its scenery, mild year round weather and the natural pure springs flowing from the nearby Jade Dragon Snowy Mountains. Each year more than 10 million tourists from all over China and the world visit this location.
Sources from the company say that those tourists alone consume more than 4000 cases of beer every day. However, Li Jiang City does not presently have its own brewery, which represents an immediate opportunity for an Australian brewing company to get in on the ground floor on a global investment.
The company has devised three options for investment, although these are flexible and dependent upon the Australian company’s requirements and expertise:
Option 1
The Chinese company will provide the following:
• Land: up to 6 hectares capable of industrial development;
• Human resources;
• Management of legal issues and paperwork; and
• The ability to cooperate with large scale local distributors, such as COFCO (China Oil and Foodstuffs Corporation), China’s largest government owned food and beverage company.
They would would then request under a possible agreement involving their partnership, for the Australian company to provide, if possible:
• Brewing machinery and equipment (this is negotiable as the Chinese company can provide these);
• Technical assistance;
• Management personnel; and
• Quality control assistance.
Option 2
The Chinese company would like to cooperate with the Australian company, given that they are able to provide the following:
• Land: up to 6 hectares capable of industrial development;
• Human resources;
• Management of legal issues and paperwork;
• Construction costs and arrangements; and
• The ability to cooperate with large scale local distributors, such as COFCO (China Oil and Foodstuffs Corporation), China’s largest government owned food and beverage company.
They would then request under a possible agreement involving their partnership, for the Australian company to provide, if possible:
• Technical assistance;
• Management personnel; and
• Quality control assistance.
Option 3
An Australian brewing design company to design the factory and provide the list for equipment purchase.
The Chinese company is able to provide both the applications for Chinese business visas and arrangements to have counsel with Li Jiang local authorities for planning discussions.
For more information, contact Tim Goodman, Associate Director – Corporate Finance at Grant Thornton Australia by email at timothy.goodman@au.gt.com