Oct 15 (Reuters) - Japanese beverage conglomerate Suntory Beverage & Food Ltd will unwind its joint venture with Tsingtao Brewery Co Ltd as its sales have stalled amid stiff competition in the Chinese market, the Nikkei business daily reported.
It said Suntory would sell its stake in sales and production to the China-based Tsingtao for about 10 billion yen to 20 billion yen ($84.07 million-$168.14 million), in the first half of 2016, in return of brand licensing fees from Tsingtao.
Tsingtao, the No. 2 ranked brewer in the world, would continue to produce Suntory beer, the newspaper reported. (s.nikkei.com/1NeJDaJ)
Suntory inked the joint venture in 2012, but stiff price competition from industry leader China Resources Snow Breweries and others ended up driving the operation into the red, The Nikkei report said.
$1 = 118.9500 yen Reporting by Rosmi Shaji in Bengaluru; Editing by Tom Brown