Budweiser sees strong demand for premium beer in China

China Resources Beer Holdings

24/02/2022 08:21

BEIJING, Feb 24 (Reuters) - Budweiser Brewing Co APAC
 1876.HK , Asia's largest beer company by sales, said on
Thursday it plans to promote more high-end beer in China, having
seen strong demand especially for limited edition costing more
than 1,500 yuan ($237) a bottle. 
    The Asia arm of Anheuser-Busch InBev  ABI.BR , which has a
portfolio of more than 50 beer brands including Hoegaarden,
Stella Artois, Corona and Harbin, said it currently holds more
than 45% of China's market of premium and super premium beer. 
    Chinese consumers are drinking less, but better beer,
according to industry analysts. Beer typically costs between 5
and 10 yuan a bottle in China. Premium beer is priced at 10-12
yuan and super premium is anything more. 
    "Today we estimate that there is only 16% of the total beer
consumption in China that is premium or super premium," while in
South Korea it is 25% and in the West 40 to 45%, said Jan Craps,
co-chair and chief executive of Budweiser APAC, in an interview
with Reuters after its fourth-quarter results. 
    "If you look at the middle income household and GDP growth
(in China), the market will be very attractive." 
    Reflecting the strength of the demand for such products, a
super high-end limited edition gift box priced at 1,588 yuan 
that contained a bottle of beer designed for the Year of Tiger
and two Italian crystal glasses, "sold out immediately" after it
was launched in January, he said. 
    "We only sold 2,400 bottles. From the start we didn't try to
sell more, we want to keep it very limited."
    Major beer brands in China such as Tsingtao Brewery
 0168.HK  and China Resources Beer  0291.HK  have also launched
super high-end products costing around or more than 1,000 yuan. 
    Budweiser on Thursday reported an 84.8% surge in net profit
for 2021 on revenue up 14.9% helped by premium sales.
    ($1 = 6.3168 Chinese yuan renminbi)

 (Reporting by Sophie Yu and Brenda Goh; editing by Jason Neely)
 ((Sophie.Yu@thomsonreuters.com; 861056692136;))