The group, who produce a number of the country's leading brands of processed meats and beer, recorded a 14 per cent increase of turnover to HK$17.4bn (€1.6bn) for the first three months of the year ending 31 March.

The results highlight the growing number of opportunities for food and beverage groups resulting from increased consumer spending in the country.

Along with its fashion apparel, it was CRE's beverage brands that led growth for the period with a 52 per cent rise in turnover, compared to the same period last year.

Beer sales in particular proved to be very strong, up 43 per cent to about 1,167,000 kilolitres, an organic growth of 37 per cent, according to the company.

Snow beer, which is brewed in conjunction with global beverage group SABMiller, was key in driving success within the segment, with sales volumes up 96 per cent to 824,000 kiloliters. This allowed Snow to maintain its dominance of the domestic mainland beer market.

The performance of the segment allowed to the group to offset loses related to newly acquired breweries in the country

The group's food business failed to match the levels of growth seen in beverages, though profit still increased by seven per cent to HK$108m. The growth was attributed in particular to the performance of the group's fishing and sea food processing, as well as the strength of its Ng Fung fresh meat brand.

The group's continued expansion into food and beverage production has not been without difficulties for CRE though.

A seasonal decline for beverage products during the period was further compounded by initial loses relating to the acquisition of new breweries in the country.

This resulted in net loses expanding to HK$32m (€3m) over the three months from HK$29m (€2.7m) in 2006.

Overall, Mark Chen CRE's managing director remains optimistic for the company's expanded operations over the coming year.

"With our strong financial position and rising market presence, we look forward to further growth led by our core businesses," he stated.