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. Lanzhou Huanghe Enterprise has stopped the production in Jinquan
The production system has become outdated and too small for the needs of modern market, since Jinquan Brewery was founded in the 80s. The equipment of the brewery has become inefficient and energy intensive, the production process will be very difficult to upgrade. The brewery hardly produces 10,000 tons of beer with a design capacity of 20,000 tons per year.
Therefore, to ensure the quality of its products, the company took the decision to close the production and to authorize the Yellow River Beer Group to use its property, including the equipment. It will be transferred to other companies or completely utilized.
5 Apr. 2016