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. AB InBev plans to close a brewery in Zhejiang Province
On 11 December 2015, AB InBev Company started the construction of a brewery in the district of Wenzhou, Zhejiang Province, with an area of 500 acres and a design capacity of 1.2 million tons of beer a year. It was invested $40 million during the first stage. The total investment in this project is $2 billion. It is one of the largest investment projects in China.
Once the brewery is put into operation, the Zhoushan brewery will be closed.
According to industry analysts, the closure of the brewery is just the beginning. Subsequently, other similar small factories can also be stopped. AB InBev has 50 breweries in Asia Pacific region. There are 4 major Breweries (500000 tons and more), 6 large plants (300-500 thousand tons), 16 medium-sized enterprises (100-300 tons) and 23 small (less than 100,000 tons) in the 6 regions of China.
Previously, the company has already closed 4 breweries in China in order to optimize production.
9 Mar. 2016