China: Tsingtao remains China’s No. 1 beer by brand value in 2018
China’s beer production rose less than 1 percent during the first half of 2017, the National Bureau of Statistics reported. Beer was one of four food and beverage categories in which foreign brands gained share, according to Kantar Worldpanel.
Out-of-home beer consumption was especially strong, reflecting the increase in discretionary spending in restaurants, bars, and sporting events. However, beer sales value increased because, although Chinese are consuming less beer, they are moving toward the premium end of the market, and paying more for the beer they drink, BrandZ™ / Kantar Millward Brown’s TOP 100 Most Valuable Chinese Brands 2018 report says.
Increased interest in health and wellness also impacted beer consumption. And Chinese brands felt the growing interest in craft beers, especially among young people, as a global trend impacts the Chinese market.
Responding to competition from international imports, Tsingtao improved packaging and offered specialty beers, such as its Classic 1903 Weissbier. Its e-commerce app “Tsingtao QuickBuy” was available in over 50 cities. Consistent with China’s Belt and Road initiatives, Tsingtao explored overseas opportunities and expanded overseas sales volume 14 percent, year-on-year, for the first half of 2017, with a presence in 100 countries.
A wheat beer introduced by Harbin, Harbin Baipi, grew rapidly, based on popularity with women drinkers and the drink’s easy pairing with food. Owned by AB InBev, Harbin sponsored an e-Sports league in Shanghai. E-sports is a growing phenomenon where spectators gather to watch competition between expert gamers.
Along with global consumer trends, business developments also touched the Chinese market. When it combined with AB InBev, SAB Miller divested its holdings in China Resources Snow
Breweries. Also, shares of Tsingtao rose on the news that the Japanese Asahi Group planned to sell at least part of its stake in the Chinese brands.
According to the report, Tsingtao beer retains its No. 1 rank on China’s beer market with a brand value of USD1.278 bln in 2018, followed by Harbin beer (USD1.261 bln) and Snow beer (USD1.19 bln).
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