CHINA TOPIX

11/21/2024 10:14:39 pm

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Change in China's Beer Taste Attracts Brewing Giants

Cans of Snow beer

Snow beer, the best-selling beer brand in China

A decade ago, Mr. Jin Xin began selling imported premium beers, and within a few years, his business started to pick up.

Today, NBeerPub, one of Jin's bars located in Beijing, is usually jam packed with Chinese customers ordering imported beers like Brewdog Punk IPA, Delirium Tremens, and Lindemans Framboise.

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Customers regularly come for European beers. Chinese customers' beer taste is changing. Before, consumers preferred local mass-produced beers, but nowadays, they choose to chug down imports and local craft beers.

Anheuser-Busch InBev, one of the most prominent brewing companies worldwide, recently made a deal to buy another brewing company, SABMiller. The deal is worth $106 billion. China's change of beer preference is a big factor in the making of Anheuser-Busch InBev's deal. The two major brewing companies were among the first to venture into China in 1990s and originally teamed with local brewers. Anheuser-Busch InBev bought out two local beer brands - Harbin and Sedrin. Meanwhile, SABMiller entered a joint venture to produce Snow. Snow is known as the best-selling brand of beer in China.

As the two giant companies dominate the brewing industry in China, and as they pursue a plan of integrating, they are set to reduce their selection of products in China to continue making the regulators pleased.

Several analysts believe that they can validate the sale of a major domestic brand like Snow because the market is opting for premium brands. Beijing has about half a dozen small breweries, and others are still emerging from other areas in China. Additionally, home-produced craft beers are getting favor.

Nonetheless, imported beers have increased in sales from 335 million renminbi in 2009 to 1.4 billion renminbi in 2013. This shows that the Chinese middle class are eager to spend more money on brands, and experienced travelers are trying to taste various beers from other countries.

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