Birkner's Beverage World
 
Language Deutsch English Francais
Italiano Espanol English US
  • Company database
  • Advanced Search
  • Professional Search
  • Buyers' Guide A-Z
  • Terms of Use
  • Advanced Search
  • Professional Search
  • Buyers' Guide A-Z
  • Terms of Use
  • Maps
  • Registration
  • Free entry
  • Advertising entry
  • Journal
  • Exhibitions, Conferences
  • Mediapartner
  • Beverage industry
  • News
  • Advertising
  • Print
  • Advertising sample
  • BeverageSite
  • Combinations
  • Banner Advertising
  • Homepage
  • Publishing house products
  • Order
  • Publishing house
  • Imprint
  • Contact
  • Contact person
  • Location Map
  • Privacy Statement
  •    
       
    You are here: Company information - China Resources Snow Breweries, AB InBev Group

      print page print page back to result list
    Company information
    WEB-Info
    Products
    News
    Breweries


    China Resources Snow Breweries, AB InBev Group

    China, Shenyang


     
    17.01.2018   China: Tsingtao, China Resources Beer shares jump on inaccurate report of beer prices hike    ( E-malt.com )

    Shares in Tsingtao, China’s best-known brewer internationally, jumped on January 5 following a report that it would raise prices as much as 20 per cent, even though the company dismissed it as inaccurate, the Financial Times reported.

    The share price rose to 23 per cent in Hong Kong on January 5 before paring gains and closing 11 per cent higher, adding $814 mln to the company’s market capitalisation.

    The surge followed a report by Beijing News that Tsingtao and other breweries had raised prices on some products by 10 to 20 per cent due to higher raw material and labour costs.

    Hong Kong-listed China Resources Beer, the parent company of China Resources Snow Breweries which is China’s largest brewer by volume, rose as much as 11.8 per cent to a record high following the report.

    However, Tsingtao said in a statement to the Hong Kong exchange after market close that media reports of substantial price increases were “inaccurate”. The company added that prices of some of its products would rise due to an increase in packaging costs, but not by more than 5 per cent on average.

    Chinese beer companies generally specialise in cheaper brews, which they sell in large volumes. This model has come under pressure as higher incomes prompt consumers to upgrade to higher-end brands, leading to gains for foreign beer manufacturers.

    Japanese brewer Asahi last month agreed to sell most of its 18 per cent stake in Tsingtao to Chinese conglomerate Fosun and its subsidiaries for $844m. Tsingtao is China’s second largest brewer and was founded in 1903 by German and British merchants. It has the highest international presence of any Chinese beer brand.
     
    09.01.2018   China: Tsingtao, China Resources Beer shares jump on inaccurate report of beer prices hike    ( E-Malt.com )

    Shares in Tsingtao, China’s best-known brewer internationally, jumped on January 5 following a report that it would raise prices as much as 20 per cent, even though the company dismissed it as inaccurate, the Financial Times reported.

    The share price rose to 23 per cent in Hong Kong on January 5 before paring gains and closing 11 per cent higher, adding $814 mln to the company’s market capitalisation.

    The surge followed a report by Beijing News that Tsingtao and other breweries had raised prices on some products by 10 to 20 per cent due to higher raw material and labour costs.

    Hong Kong-listed China Resources Beer, the parent company of China Resources Snow Breweries which is China’s largest brewer by volume, rose as much as 11.8 per cent to a record high following the report.

    However, Tsingtao said in a statement to the Hong Kong exchange after market close that media reports of substantial price increases were “inaccurate”. The company added that prices of some of its products would rise due to an increase in packaging costs, but not by more than 5 per cent on average.

    Chinese beer companies generally specialise in cheaper brews, which they sell in large volumes. This model has come under pressure as higher incomes prompt consumers to upgrade to higher-end brands, leading to gains for foreign beer manufacturers.

    Japanese brewer Asahi last month agreed to sell most of its 18 per cent stake in Tsingtao to Chinese conglomerate Fosun and its subsidiaries for $844m. Tsingtao is China’s second largest brewer and was founded in 1903 by German and British merchants. It has the highest international presence of any Chinese beer brand.
     
    29.05.2015   China: Of the top ten beer brands around the world, four are Chinese    ( E-malt.com )

    If you live outside of China, you may never had heard of Snow, a pale ale made by SABMiller and China Resources Enterprise. But it has been the top selling beer brand in the world in terms of volume since 2008, when it overtook Bud Light. SABMiller likes to brag that in 2012 it sold enough Snow beer to fill 12 Olympic-sized swimming pools every day for a year, Quartz reported on May 22.

    Snow’s primary advantage is that it is sold in the world’s largest beer market. As Quartz has pointed out, China is the biggest beer market in the world by volume, and overtook the US in 2002. (It is now twice as large, but the US still leads in terms of sales value.) Moreover, it’s cheap, as little as 3 renminbi ($0.49) for a 330 ml can, widely distributed, and according to SABMiller, works well with spicy Chinese meals.

    As one reviewer explains:
    “There are some beers you buy because they taste great and others you buy because they are cheap. Snow fills the latter category quite nicely in China. For 3.80 RMB, or roughly 50 cents, you can have a regular old Euro pale. It is what it is, and really for what it is, not terrible. Like the bottle says: “Relax, it’s fine.”

    Of the top ten beer brands around the world, four of them are Chinese.

    But watery, low alcohol-content beer may be losing favor with Chinese consumers. Last year, domestic beer production output registered the first drop in ten consecutive years of growth.

    Meanwhile, beer imports from Germany, Belgium, the Netherlands, France, and other markets are growing, according to the US Department of Agriculture’s Foreign Agricultural Service. Craft beer stores and bars have also been popping up around cities like Beijing and Shanghai, giving US industry observers hope that a window of opportunity, similar to one that opened for imported wine a decade ago, has opened for beer as well.
     
    24.07.2013   SABMiller publishes progress against sustainability targets    ( Company news )

    SABMiller hits local sourcing target for Africa a year early

    Absolute water use cut by 16%, absolute carbon emissions cut by 26% since 2008, despite volume growth

    SABMiller plc, one of the world’s largest brewers, today publishes details of its progress and performance on sustainable development over the last year.

    - The company’s Africa division sourced 52% of its agricultural raw materials from within Africa, achieving its target of 50% a year early.

    - In 2008 SABMiller was one of the first global brewers to publish a water efficiency target – to reduce water use per litre of beer by 25% by 2015 from 4.6 to 3.5 litres. In 2012/13 the company used an average of 3.7 litres of water per litre of beer, an 8% improvement on the previous year. Since 2008 the company has reduced its absolute water use by 16% despite an increase in production volumes.

    - The business has also reduced its CO2e emissions per litre of beer by 10% compared to the previous year. In absolute terms, carbon emissions dropped by 26% between 2008 and 2013. Its target is to reduce fossil fuel emissions by 50% per litre of beer produced by 2020, compared to 2008.

    - Around the world, the company has over 100 programmes to address the harmful use of alcohol and promote responsible drinking and, in the past three years, 76% of employees received alcohol responsibility training.

    - This year SABMiller – including its foundations – invested over US$6 million in programmes to foster entrepreneurial activity worldwide.

    Alan Clark, SABMiller CEO said: “Forward-thinking businesses must show leadership on resource issues, because efficient use of shared resources underpins our future growth. We set ourselves deliberately stretching targets which go beyond that which we believe to be immediately achievable. This makes it all the more rewarding when we make significant progress and, as in the case with Africa’s local sourcing, hit these targets ahead of time.”

    One of SABMiller’s strategic priorities is to ‘Constantly raise the profitability of local businesses, sustainably’. The company’s approach is underpinned by ten sustainable development priorities, which inform how efforts are focused and resources prioritised.

    Performance and progress against these priorities are measured through SABMiller’s Sustainability Assessment Matrix (SAM). Each business within the group is assessed against a series of criteria which includes both quantitative and qualitative measurements; the results of which are published in an interactive format on http://www.sabmiller.com/index.asp?pageid=4 allowing for greater insight and scrutiny into the sustainability performance of its businesses around the world. The overall performance against each priority area is measured on a scale from one to five, with one being the minimum standard and five being world class – this year the average group SAM score increased from 3.2 to 3.3, the sixth year of continual improvement.
    (China Resources Snow Breweries)
     
    06.08.2012   China: World’s most popular beer, Snow is hardly ever known of outside China    ( E-Malt.com )

    Belgium-based Anheuser-Busch InBev is the world's largest brewer. And its top brand isn't Budweiser - it's actually Bud Light. Even so, Bud Light is only the world's second-most popular beer, Street Authority posted on August, 2.

    The correct answer is a product some people haven’t ever heard of - Snow beer, the most popular beer in China.

    Snow is a product of China Resources Snow Breweries, a joint venture owned by U.K.-based SABMiller and Chinese conglomerate China Resources Enterprise.

    Snow is estimated to control 5% of the global beer market by sales volume, more than both Bud Light and Budweiser combined. Five percent may not sound like much, but it comes to more than 17 billion bottles of beer a year.

    In the past few months, companies that produce alcohol have been on a tear. Thanks to global economic concerns, investors have flocked to this stable corner of the market. Of course, this is nothing new. Defensive stocks tend to do well in a volatile market.

    But what most people don't realize is that some of the world's best defensive stocks aren't based in the United States.

    As disposable income and middle classes expand in China and other emerging markets, so does demand for goods and services, including alcohol and tobacco products.

    In the case of beer, China is by far the largest beer market in the world, more than twice the size of the United States, the world's No. 2, with 6.3 billion gallons in annual sales.

    And while sales languish in the United States (down 1% in 2011, according to the Brewers Association, a trade group) and much of the West, sales are on the rise in China and other emerging-market countries - and they have plenty of room to run.

    On a per-capita basis, Chinese consumers drink just a little more than 37 litres of beer per year, compared with 77 litres in the United States, 72 in Brazil and 115 for Germany.

    That's good news for SABMiller, the world's second-largest brewer.

    In the fiscal year ending March 31, more than three-fourths of SABMiller's earnings before interest, taxes depreciation and amortization (EBITDA) came from emerging markets.

    About a third of SABMiller's EBITDA originated in Latin America, and the company had the strongest position of any brewer in the fast-growing African market. Of course, it also owns a large stake in the world's most-popular beer, Snow. All told, SABMiller owns more than 200 individual beer brands.

    Better yet, since the start of June the shares are up 21%.
     
    23.01.2012   SABMiller launches China trial for Miller Genuine Draft    ( Company news )

    Company news SABMiller plc (SAB.L), one of the world's leading brewers, announced that ("CR Snow") China Resources Snow Breweries Limited, its joint venture with China Resources Enterprise Limited ("CRE"), is launching a trial of SABMiller's international premium brand, Miller Genuine Draft, in the Zhejiang region of China.
    The introduction of Miller Genuine Draft into the Zhejiang market gives the company the opportunity to test the potential for its international brand with a premium beer imported from the USA.
    The joint venture has achieved significant growth for local brand ‘Snow', which is both the largest beer brand in China and in the world by volume. CR Snow had a 21% share of the Chinese beer market with sales of more than 92 million hectolitres (1 hectolitre = 100 litres) in 2010.
    CR Snow is the exclusive importer and will utilise its existing infrastructure to service the market, with Miller Genuine Draft initially available in Hangzhou and Wenzhou following a launch event was held in Hangzhou on 16th January.
    Ari Mervis, SABMiller's Managing Director, Asia Pacific, said: "This is an exciting opportunity to introduce one of our international brands into the fast-growing premium segment in China in a way which takes advantage of CR Snow's strong market position in the region."
    Zhejiang is one of the largest markets in Central China and its capital, Hangzhou, has one of the highest GDPs of the provincial large cities.
    (SABMiller plc)
     
    28.06.2011   China: Beer price hikes may take place in the second half of the year - analysts say    ( E-malt.com )

    Beer producers in China are planning to raise product prices as they fight soaring raw material costs and low profit margins. The price hikes may take place in the second half of the year, analysts say, The Southern Metropolis Daily reports.
    Prices of barley, a main ingredient for beer production, surged 43.5% between November and March, according to industry sources.
    “Rising costs of barley will inevitably affect beer enterprises’ profits this year, and I think they [beer enterprises] have to take into account the increased investment needed for beer production,” Bai Pu, an industry analyst and professor at Beijing University of Agriculture, is quoted as saying.
    “I think apart from rising production costs, there’s a more important reason for Chinese brewers to raise prices: the decreasing profit margins repeatedly seen in the industry for the past 5 years,” Li Baojun, president of private data house Societ, Insights & Decision (SID), said at a beer forum last weekend.
    Li also said beer makers’ margins are taking a hit from other costs, and they would need to raise prices to continue operating. “Brewers also have to spend a fortune on marketing and human labor, but given the cutthroat competition and shrinking profit margins, I don’t think they would be able to hang on there without raising product prices.”
    In January, China Resources Snow Brewery Co. Ltd., China’s largest brewer by production volume, hiked its product prices by more than 10% in several provinces. A few months later Tsingtao Brewery Co. Ltd. followed suit, raising the prices of several of its products by an average of 10%.
    In early April the National Development and Reform Commission (NDRC), China’s top economic planner and price-setting agency, stepped in to call a halt to brewers’ price hikes amid rising inflation concerns.
    The NDRC held talks with the country’s 4 biggest breweries - CR Snow, Tsingtao, Beijing Yanjing Brewery Co. Ltd. and Belgium-based AB InBev NV - and said that while it “understood” the cost pressures being faced by beer makers, it would still advise them to stabilize prices - without saying for how long.
    China’s top 4 beer makers have a combined market share of 58% and account for more than 70% of the industry’s profits.
    Chinese brewers have answered the NDRC’s call by postponing price hikes, and some have adopted coping measures such as reducing per-bottle beer volume to offset higher production costs.
    Food producers and makers of consumer goods have also been asked by the NDRC to delay raising their prices. Inflation in China hit a 34-month high of 5.5% in May, pushing the inflation rate for the first 5 months up to 5.2%, way above the government’s 4% target for the whole year.
     
    11.04.2011   China: China’s top economic planner urges brewers to stabilize prices    ( E-Malt.com )

    The National Development and Reform Commission (NDRC), China’s top economic planner, has hauled up representatives from China’s four largest beer makers for talks over their price hikes, as it looks to tackle public concerns over soaring inflation, The 21st Century Business Herald reported on April, 8.
    On March 31, the NDRC spoke to people from China Resources Snow Breweries Co. Ltd., Tsingtao Brewery Co. Ltd., Beijing Yanjing Brewery Co. Ltd. and the China unit of Belgian AB InBev NV.
    Those four brewers have a combined 58% share of the country’s beer market.
    In the face of rising raw material costs, local beer makers are planning to increase their product prices, and another round of price hikes is expected to take place from May, The 21st Century Business Herald cited a person from a mid-sized domestic beer producer.
    “Since February, the cost of beer production has risen by RMB 94 per ton, which explains the beer makers’ unanimous price hikes,” the person said.
    Since January, CR Snow Breweries, China’s largest brewer by volume, has raised prices by more than 10% in Sichuan, Liaoning and Anhui provinces, where it enjoys a dominant position in the market.
    Tsingtao Brewery also hiked prices of several products in the following months by an average of 10%, the company announced earlier.
    The beer maker is considering another 5% hike for its core products this month, according to several industry analysts and market watchers.
    “Costs of raw materials have been rising since the second half of last year, and then the cost of labor also went up by almost 30% since the beginning of this year,” said an industry insider.
    The NDRC said it understood the position of beer makers given their rising costs, but said gains in liquor prices were inappropriate as liquor makers’ production costs had not risen by as much as those of brewers. The commission urged both beer and liquor makers to stabilize prices.
    Prompted by rising inflation in China - the consumer price index (CPI) might have risen above 5% in March according to some analysts – government bodies are trying to take measures to contain or bring prices down. The central government is targeting a 4% increase in the CPI this year.
    The NDRC has also talked to and investigated major consumer goods makers including Unilever Plc. and the Procter & Gamble Co.
    Chinese media have been reporting that many manufacturers, P&G and Unilever included, are planning to increase the prices of cleaning and personal care items by 10% on average from April.
    Questions have been raised by commentators as to whether some leading industry players are colluding to raise prices.
    Consumer goods makers and food and drink enterprises have been invited by the NDRC to discuss putting off their price hikes.
    Resigned to rising raw materials prices, brewers are figuring out new ways to offset higher costs.
    “One way of countering the costs is to reduce beer capacity by as much as 100 milliliters for a 660-ml bottle,” said the head of a local beer company.
     
    28.03.2011   China: More brewers hiking beer prices    ( E-Malt.com )

    Beer drinkers in China may soon have to pay more to raise their glasses because major brewers, including Suntory and Snow Beer, are considering plans to raise prices in response to higher costs of raw materials, China.org.cn communicated on March, 25.
    As already reported, China Resources Enterprise, which produces China's top beer brand Snow with SABMiller Plc, said its beer division will increase average selling prices to cover the increase in the costs of raw materials and packaging materials.
    Japan's Suntory has recently issued a notice to retailers informing them that it also proposed to increase prices of some of its products by an average 5.6 percent, according to Shanghai's NGS supermarket.
    Its six-355-milliliter-can pack of Suntory Qingshuang will be sold at 13.20 yuan (US$2), up from 12.50 yuan, while a four-500ml-bottle pack will see its price increase to 13.30 yuan from 12.80 yuan.
    An official surnamed Gan from NGS said other mainstream brewers, including Chinese brand Reeb, Tsingtao and United States-based Budweiser, may also hike their prices this year.
    The rising costs of raw materials have forced beer makers to raise prices as they see their profits being eroded.
    Hu Chunxia, an analyst at Guotai Junan Securities, said prices for wheat, the major raw material in beer making in China, have risen from US$250 per ton in September to about US$380 per ton now due to a tight supply worldwide.
     
    14.03.2011   China: China’s largest brewer phasing in price rises    ( E-Malt.com )

    China’s biggest brewer is pushing through price rises of 10 per cent – in a sector that has traditionally balked at higher prices – as it seeks to recoup rising business costs, The Financial Times reported on March, 4.
    China Resources Snow Brewery, a joint venture between UK-listed SABMiller and China Resources, controls one-fifth of China’s beer market, with estimated sales of $1.3 bln last year. The brewer is phasing in the rises throughout the provinces it operates in, in order to monitor consumer reaction.
    “Snow started putting up prices in some places at the end of last year and has not completed the whole process. We hope if we can make the process successful ... we could increase prices [throughout our dominant markets],” said Humor Wang, general manager of China Resources Snow Brewery.
    Analysts expect the industry to follow suit; some of which is already in evidence. But they warn that beer drinkers have historically proved quite sensitive to price and any move for an increase could have an impact on volumes.
    Yet the price rise – roughly double that of inflation in the country – will simply cover Snow’s inflated running costs, analysts said.
    That means that, in contrast to the some of the global price rises put through by manufacturers in the wake of the last commodity spike of 2007-08, none of the increase will drop through to the company’s bottom line.
    Paul Knobel, SABMiller’s director of operations for China, added that large businesses in the country already tend to have lean operations, making it harder to absorb input inflation by cutting costs.
    “The selling price is going up around 10 per cent and I think we will need most of that in order to protect [profit] margins, so I don’t see a major change in the margin structure,” he said.
    Wages in China are rising by double digits, and many provinces are introducing minimum wages.
    Mr Knobel adds that government’s efforts to transform the energy sector mean that the “closure of certain plants is driving a supply-led issue in terms of pricing”.
    On taxes, he cites the equalisation of taxes for local and foreign companies that came into effect at the end of last year. Following the change, companies like Snow are now obliged to pay additional levies of between 4-11 per cent, depending on where there assets are located.
    “All of our costs are rising. We are responding in terms of pricing. We think the market can take some [higher] pricing,” he said, adding that it was too early to judge consumer reaction given advance purchases and the recent Chinese New Year, which boosts sales.
     
    29.11.2010   China: China Resources Snow Breweries to re-invest CNY320 million in Henan beer operations     ( E-malt.com )

    China Resources Snow Breweries is said to re-invest CNY320 million in acquiring the beer production equipment, upgrade, and purchase of new equipment following the acquisition of Yuequan brand in May, SinoCast communicated on November, 25.
    The move is expected to increase the capacity to 200,000 tons based on existing 100,000 tons of Yuequan Beer.
    After put into operation, the new plant's sales revenue shall hit CNY 350 million. The plant is designed to specialize in high-end snow series beer, with target market in four cities, Zhumadian, Zhoukou, Shangqiu, and Xinyang in Henan Province, and Xuzhou.
    Insiders believe that move will sharpen China Resources Snow Breweries' competitiveness in Henan, a big beer province taking the second place in the output and sales of beer just following Shandong.
    Since this year, Henan has become a battlefield for each large-sized beer maker. China Resources Snow Breweries spent CNY27 million purchasing Yuequan Beer. Beer giant Yanjing also spent CNY227 million acquiring the third largest beer factory in Henan, it is reported.
     
    24.03.2010   United States: MillerCoors to test-market beer based on pre-Prohibition recipe     ( E-Malt.com )

    MillerCoors LLC plans to test-market a new beer based on a pre-Prohibition recipe, The Wall Street Journal communicated on March, 18.
    The new beer is called Batch 19 and makes part of the brewer’s initiatives aimed at bucking up the US market.
    As from next month, the new beer will be available in draft in bars and restaurants in Chicago, Milwaukee, San Francisco and Washington, said Peter Swinburn, chief executive of Molson Coors Brewing Co., which co-owns MillerCoors.
    According to Mr. Swinburn, Batch 19 - named for the year, 1919, before Prohibition began—is designed to attract consumers looking for "a true, authentic, original beer."
    The recipe of Batch 19 was found by Keith Villa, master brewer at MillerCoors, in the archives of Coors Brewing Co. in Golden, Colo. The recipe was used to make one of its beers before alcohol was banned in the U.S. for a 13-year period, Mr. Swinburn said.
    "It's the beer that got beer banned," Mr. Swinburn joked.
    MillerCoors, a joint venture of Molson Coors and London's SABMiller PLC that was formed in 2008, is rolling out new products and packaging styles amid one of the biggest slumps in demand the industry has faced in years.
    Shipments of beer in the U.S. fell about 2% last year. Miller Lite's shipments fell 6.5% and Coors Light's rose 0.8%, according to Beer Marketer's Insights newsletter.
    MillerCoors, the second-largest U.S. beer maker by sales after Anheuser-Busch InBev NV, said previously that it would expand to the whole country its $20, refrigerator-friendly draft-beer systems for Miller Lite and Coors Light. It also has said it plans this year to unveil a new type of bottle for Miller Lite that is designed with grooves inside the neck. The new bottle, when poured, will "actually increase the aroma" of the brew and "explode the flavor more," Mr. Swinburn said.
    Coors Light has been a bright spot for MillerCoors, but it has struggled to find a way to revive Miller Lite, which has faced declining sales for much of the past decade. "It just takes time given where the brand was," Mr. Swinburn said. "Yes, we're committed to the brand. Yes, we think we'll get it right."
    MillerCoors, based in Chicago, is trying to be innovative in a crowded market in which new products have shown a mixed track record. MillerCoors made a hit of MGD 64, a light beer with just 64 calories, and Anheuser did so with Bud Light Lime, a lime-infused version of the nation's top-selling brew. Some other beers, such as lime-and-salt-flavored Miller Chill, have done well initially but then foundered.
    Molson Coors has a 42% stake in MillerCoors. Its other big markets are Canada and the U.K. In February, it said its fourth-quarter profit more than doubled to $222.1 million as net sales jumped 11% to $820.8 million. Sales volume in the U.S. and Canada has been down in recent months because of high unemployment and penny-pinching by consumers.
    Mr. Swinburn said Molson Coors is seeing some encouraging signs for new products it recently rolled out in Canada, including a 67-calorie version of Molson Canadian, but "it's really, really early."
    He also said the beer giant, which has dual headquarters in Montreal and Denver, would consider more acquisitions, but only if they meet stringent criteria, such as adding to Molson Coors's per-share earnings in the short-term.
    Mr. Swinburn said the company was encouraged by the growth of Coors Light in China, and might look into buying a brewery in China or starting its own. Coors Light is currently brewed under contract in China by China Resources Snow Breweries, which is 49%-owned by SABMiller.
    "We will look to, when the time is right, underpin that volume because it's getting to the stage now where the margin that we would enjoy from producing it ourselves would justify a certain level of capital investment," Mr. Swinburn said. "We've painstakingly built that market over eight years, city by city."
    The company sells Coors Light in 42 cities in China and has about 400 employees in the country. Sales of the brand are growing about 30% each year, though off a small base.
     
     
    Database | Registration | Journal | News | Advertising | Publishing house products | Publishing house | Imprint | Privacy Statement
     

    © 2004-2018, Birkner GmbH & Co. KG  -   Last database update: 19.11.2018 17:55