China: Beer industry profits jump 26% in 2006
China's large alcoholic drink production enterprises realized 229.501 billion yuan in sales revenue in 2006, increasing 28.16 percent year on year, and 18.003 billion yuan of profits, surging 34.88 percent, Xinhua News Agency reported April 4.
Of this, profits of alcohol production reached 10.02 billion yuan, jumping 34.21 percent year, according to a report issued by the China Alcoholic Drinks Industry Association (CADA).
Profits of alcohol production accounted for about 60 percent of the total of alcoholic drink industry last year. At the same time, beer and wine sectors of the industry presented lower growth in profits.
Large beer enterprises raked in 4.624 billion yuan of profits in 2006, rising 25.79 percent year on year, and large grape wine enterprises, 1.353 billion yuan, up 19.63 percent; big yellow rice or millet wine, 450 million yuan, up 25.70 percent, ethyl alcohol enterprises, 1.223 billion yuan, surging 100.82 percent; and fruit wine, 333 million yuan, up 15.63 percent.
Wang Yancai, chairman of CADA, said that alcohol production sector and brand name alcohol enterprises achieved progresses in adjustment of product mix, with the output increasing 500,000 tons, sales revenue up 25.0 billion yuan, and taxes and profits up 4.5 billion yuan.
Among the big-name alcohol enterprises, the Wuliangye Group reported 26.84 percent drop in output, but 28.09 percent in sales revenues; the Maotai Group raked in profits of 2.533 billion yuan, increasing about 600 million yuan, and presented an increase of 28 percent in sales revenue; and the Jiannanchun Group reported 43.47 percent increase in sales revenue.
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