Budweiser to launch beer made with locally-sourced malting barley

With China continually promoting high-level opening up and encouraging more cooperation between domestic and global companies, Budweiser Brewing Co APAC Ltd, will provide local consumers with beer brewed with locally-sourced malting barley of premium quality via its partnership with a State-owned enterprise.

Many opportunities come from the Budweiser APAC, a Hong Kong Stock Exchange-listed brewer's partnership with Jiangsu Nongken Group, the State-owned agricultural business company, sealed last year, to boost malting barley output and help to increase local farmers' income in eastern China's Jiangsu province.

"The barley, harvested this month, will be used to brew Budweiser APAC's local brand BBOSS Beer, which will boost local pride and push the beer company further tap into the whole industry chain to support China's rural revitalization," said Jan Clysner, vice-president of procurement and sustainability at Budweiser APAC.

Under the partnership, Budweiser APAC will acquire 30,000 metric tons of barley from Jiangsu Nongken Group, covering more than 3,000 hectares of farmland and benefiting 5,000 local growers with a combined income of about 30 million yuan ($4.65 million).

"The partnership not only ensures the income of local growers, but also realizes 'from farm to table' food safety traceability and lower risks in raw material supplies," said Clysner, adding from breeding and planting, to malt production and then to procurement and brewing, the company is committed to promoting the integrated development of China's malting barley whole industry chain from the source.

"We will continue to invest in our commercial strategies - premiumization, commercial expansion and digital transformation in China, to accelerate business recovery and seed future growth opportunities," he said.

With China calling for more investment in green transformation to fulfill its pledge to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060, Budweiser APAC has already adjusted the whole industry chain to make efforts on sustainable development, such as agriculture, solar power generation, water conservancy, circular economy and green logistics, in addition to offering premium-quality beers in Chinese market.

He said part of the barley straws will be used to make circular packaging after the harvest. "This marks another step forward in our never-ceasing pursuit of sustainable development, as we utilize agricultural wastes to drive the green development of local agriculture," said Clysner.

In terms of climate and soil conditions, Jiangsu, especially in its northern part, is the most suitable region for the growth of malting barley. Its well-developed logistics network will also provide convenience for both domestic and global companies' plants operating in the province, said Ding Lixin, a researcher at the Chinese Academy of Agricultural Sciences, in Beijing.