CR Snow

  • Reading time:9 min(s) read

Company structure

Ownership structure of a major Chinese producer is rather complex, and it has been recently changed. But the central company, serving as a base of brewing business is still China Resources Snow Breweries, Ltd. (CR Snow below).

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Part 2. New reality for brewing companies

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Less but more expensive

The fall in sales volumes considerably affected brewers’ revenues. The two digit growth rates that were observed till 2013, gave way to a more modest figures and in 2015, the sales revenues grew by …% compared to 2014 to … bln yuan. In dollars the decline amounted to …% to $… bln due to yuan devaluation.

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Chinese craft beer

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Wealthy representatives of “New China” ever more frequently prefer to buy a bottle or two of special quality beer and background ignoring the mainstream product. In truth, many Chinese think that only import beer can be qualitative and can outline their status. But as many other countries’ experience shows the fast popularity growth of import beer is a precondition for the craft segment and small brewing development. (more…)

Imported beer

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Till 2012, the import segment was microscopic, amounting to 0.1%. Its heyday began as the national beer producers started withering. The popularity of import brands was growing due to the powerful trend of the market premiumization. (more…)

Beer among other alcohol drinks

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Do the Chinese drink a lot of alcohol?

According to WHO, in China 44% of people over 15 consume alcohol. As we can see the share of alcohol consumers a little exceeds the world’s average 37%, but is behind the USA and Europe.

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Weather affect

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Beer is a seasonal product. The sales level is dependent on the weather: the hotter it is, the higher demand for beer, water, and soft drinks is and vice versa. (more…)

“Two speed” market

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The rapid growth of sales of premium beer and equally rapid decline of the cheap one cannot be explained only by consumers’ preferences change. The answer to the question “What is going on?” can be found in the publication by The Boston Consulting Group on FMCG Chinese market. (more…)

Who and how much drinks beer in China?

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In order to determine the fundamental reasons for the Chinese market reduction and particularly its cheap segment, let us consider the social factors affecting the volumes of beer consumption. And then, we will analyze how they could change in the past years. (more…)

Beer market performance

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Production and sales

Before speaking of the data published in the official reports by National Bureau of Statistics of China (NBSC below), let us pay attention to one peculiarity. Firstly, they can change significantly due to updating. Secondly, the percentage figures of the production or sales dynamics, calculated basing on the published volumes can differ considerably from the published growth/decline rates. By the way, significant discrepancies can be found not only in China but also in the neighboring countries for example Vietnam or India.

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Part 1. Beer market – perfect storm or fundamental changes?

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The recent years have been challenging for Chinese brewers because of transiting from stagnation to industry decline. Let us look at the situation historically, in order to understand, when the Chinese beer market first experienced changes. (more…)