Analysis of beer market in China (on Russian)
Beer market of Ukraine: big three losing weightIn 2016, fast increase of excises and resulting price spike stood in the way of the beer market stabilization. Most of competition (as well as mass sorts) moved to the economy segment of the market. The biggest losses were incurred by the leading three, especially Obolon, which again experienced pressure after reallocation of Efes market share. However, one should already speak of TOP-4. Group Oasis CIS (PPB) became a strong player and competitor to transnational companies. Besides the net sales of many regional medium breweries look rather good and 16-fold cost reduction wholesale trade license for craft brewers opens up a possibility of rapid growth in 2017.
Analysis of beer market in China
China’s transition to a “new normal” reality backfired on the brewing industry unexpectedly. Stagnation and subsequent market decline resulted from dynamic social and economic changes. There has emerged a “two speed” market where the medium class significance is growing, yet the share of main beer consumers, “blue collar” is decreasing. Also the inflow of consumers is shrinking, as demographics stopped being a growth driver. Finally, beer is giving way to other alcohol drinks....
China. Chongqing Brewery announced the closure of the brewery in Liupanshui
The capacity of Liupanshui brewery is 60000 tons. The sales were at the level of 50000 tons. As at 31 December 2015, the sales reached 86.2965 million yuan, i.e., 2.59% of the consolidated profit of Chongqing Brewery Group. 3.72 million litres of beer have been sold, representing 3.76% of the total sales of the company.
According to the company’s management, the purchasing power of the population in the region and the volume of beer consumption began to fall. Beer prices here are much lower than in other provinces and the competition is very high. The maintenance costs of obsolete equipment of the brewery are too large and have a negative impact not only on the work of the regional brewery, but also on the financial results of the company.
Last November, Chongqing Brewery decided to optimize production by closing the excessive amount of breweries and the modernization of production.
29 Feb. 2016