Danish brewery giant Carlsberg is on a buying spree in Asia, especially China and India, as part of an aggressive move to expand in the world's fastest growing region, a report said today.

Asia now contributes about seven percent to Carlsberg's global turnover but this is expected to rise to about 25 percent over the next few years, Carlsberg president and chief executive Nils S Andersen told The Star newspaper.

"We will be looking at buying more businesses in Asia over the next few years. We have bought a few beer companies in China in the past few years and will make more acquisitions in the next few years," he said.

"We do not have a fixed target yet but hope that the Asian operations can contribute 25 percent of our global turnover in the next few years."

Carlsberg on Tuesday acquired 34.5 percent of Wusu Brewery in the Xinjiang region in northwest China from Ongo Investment Pte Ltd and minority shareholders. The brewery will be operated in joint venture with local company, Blue Sword Group.

The move follows its acquisition in July of large shares in four breweries in China's Gansu and Qinghai provinces for a total 115 million kroner. Earlier this month, Carlsberg also struck a multi-million dollar deal with a Chinese company to make beer in Tibet.

Fastest growing market

Andersen said the company was shifting its focus to Asia because its key market in western Europe, which accounted for 65 percent of total sales, has matured.

Asia's economic growth is creating new demand for beer, with China, India and Southeast Asia as new growth areas because annual average consumption in these countries is still low, he said.

"Consumption of beer has reached saturation point in Europe but Asia is the fastest growing beer market in the world," he added.

In the region, Andersen said Calsberg has the strongest brand penetration in Malaysia but smuggled beer, which constituted about 20 percent of the domestic market, had affected its business.

Carlsberg, which brews beer in 45 countries, sold 81.4 million hectolitres last year, up from 78.6 million hectolitres in 2002. It hopes for nine percent sales growth this year, Andersen said.