China: China Resources Beer confirms moderate price hike for some of its products in certain regions
China Resources Beer (Holdings) Co Ltd said on January 8 it had moderately raised prices of some of its products in certain regions, becoming the latest Chinese drinks maker to confirm price increases in response to higher packaging, raw material and labour costs, Reuters reported.
The owner of Chinas top beer brand, Snow, said it had adopted various measures, including lean marketing and production as well as product refinement, to absorb the cost pressure. It gave no further details on the price increases.
The companys shares hit a record high in Hong Kong on January 5 on press reports that brewers, including China Resources and rival Tsingtao Brewery Co Ltd, raised some prices from Jan. 1 citing rising costs of materials, labour, transportation and for environmental protection.
A stronger pricing environment in China is also good news for European alcoholic drinks companies, said Liberum analysts, pointing out that Carlsberg, Anheuser-Busch InBev, Remy Cointreau and Pernod Ricard boast the highest China sales.
Tsingtao Brewery, the maker of Chinas best known Tsingtao beer, said on January 5 that it had raised product prices by up to 5 percent, in a bid to offset pressure from higher costs of production and raw materials.
Chinese liquor maker Kweichow Moutai said last month it planned to raise prices by an average of 18 percent this year.
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