Chinese brewer's profits sparkle

Tsingtao is China's second largest brewer

Tsingtao, China's most famous brewer, has seen its half-year profits soar by 77%, buoyed by the rapid growth in beer consumption in its home market.

The company, 27% owned by US giant Anheuser Busch, made a net profit of 235.1m yuan ($30.5m; £15.2m) in the last six months of 2006.

That compares with 132.9m yuan for the same half-year period in 2005.

Despite the growth, analysts warned that Tsingtao faces rising competition in the China from Western brewers.

World's biggest market

China's beer market is the largest in the world by consumption, and grew by about 15% last year, according to Anheuser-Busch.

Tsingtao is China's second largest brewer behind China Resources Snow Breweries, which is co-owned by London-based SABMiller.

Brewing industry analysts said Tsingtao and its competitors would also be hit this year by the rising global price of barley, one of beer's key ingredients.

Tsingtao is widely available in the West and analysts expect its overseas sales to grow in the run up to the 2008 Beijing Olympics.