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. Tsingtao building brewery in Jimo for $33 mln, while Carlsberg closes a plant in Bozhou.
Closing the brewery in Anhui province fully complies with the optimization policy which was agreed upon at Chongqing Brewery Co., Ltd board meeting on 27 November, 2015.
The official statement says that the closure results from the gradual sales dwindling of Chongqing Brewery in Bozhou. The demand for the production in the province has fallen down, and the output of low-margin products does not yield sufficient profit, while the marking is increasingly refocusing on high-end products.
As of 31 December, 2015, sales revenue amounted to 52.71 mln yuan and sales totaled 27.3 mln liters.
While Carlsberg closes its plants, Tsingtao is investing $33 mln into construction of a new brewery in East Industrial Park Road 179, Jimo district.
The brewery construction is to start in June 2016 and the production launch is planned for February 2017.
The prospected capacity of Ruifeng century (Qingdao) Co., Ltd.is 30 mln liters of beer per year.
The construction site will occupy 27,000 square meters. The complex itself will encompass the malt stand, brewhouse, fermentation workshop, packaging workshop, distribution systems, heating systems, compressed air systems, cooling systems, and R&D center as well as other ancillary facilities.
25 May. 2016