A beer made by a company in Victoria that is said to be worth $800 million is being sold by a private equity firm in China.
The Victoria beer company, Victory, is currently selling the beer in China for a reported $1,400 per litre, according to ABC News.
The beer is also being sold at a discount in China, which is not unheard of in the world of private equity deals.
A Chinese buyer purchased the company in December.
The company is known as Victory Breweries and has brewed beer for decades.
Victory’s beers are also sold in Australia.
Victory Brewery Victoria is selling its beers for $1.40 a litre at a Chinese discount.
The private equity group, China Brew Capital Holdings, says it is selling the Victory beer in Shanghai for a $800m value, according a news release.
The sale includes the Victory’s assets, including brewing and marketing assets, its branding, distribution and brand management.
The announcement of the deal was made by the company’s chief executive, Richard Dyer, in a letter to investors.
“I am proud to be able to share with you that we have been awarded a private-equity investor to invest in Victory Brewcraft.
This investment is based on a commitment to grow the brand and to deliver high-quality beer to the Chinese market,” he said.
Victory has been selling beer in the Chinese capital since 2000.
Victory brews for the Chinese government and for the government of Hong Kong, according the company.
The Chinese government has a long history of supporting foreign companies, especially in the beer industry.
In 2017, Victory sold a brand of beer in Hong Kong to a Chinese brewer, Xinhu, after a year-long period in China under the control of the Hong Kong government.
China BrewCapital said it expects the sale to generate additional annual revenues of $600 million.
Victory also owns a beer brand in Germany called Hölfe, which was acquired by the beer company in 2006.
“This transaction will allow Victory to diversify its portfolio of beers to serve the growing beer market in China,” Mr Dyer said in the letter.
Victory was founded in 1888 and has a beer division that brews, distributes and markets beer in Australia, Europe and the Americas.
The firm produces its own beers and sells beer to retailers and wholesalers, according its website.