Thread Newsletter – September Edition
If you haven’t heard already, China is the world’s largest beer market by volume at 45.7 billion litres and they’ll likely hold on to that title for a while. Interestingly enough, sales volume of beer has been declining for the last 4 years because consumers are choosing to drink less, but they’re opting to drink better tasting and more expensive beer. For this reason, China is the second largest market by value at USD 84.7 billion.
Craft breweries have been riding this trend of premiumization, but China’s largest breweries like Tsingtao Brewery and Beijing Yanjing have suffered from this and rising labour cost. For the first time in over a decade, many of China’s largest brewers have been forced to raise prices by up to 20%.
So much has happened in just a couple of years, we’re already wondering who’s going to make the next major play. AB In Bev bought Boxing Cat, one of our favourite brand creations. Heineken spent USD 3.1 billion for a 40% stake in China’s biggest beer firm (China Resources Beer). Goose Island and Stone Brewery both opened up a Brewhouse in Shanghai.
We wouldn’t be surprised if heads began turning towards local craft spirits like gin and baijiu. Startups like Shanghai’s craft gin Crimson Pangolin are beginning to make waves (love the packaging guys). As one of five teams chosen to join our recent Free Branding Workshop, we’re excited to see what’s to come for them. If you weren’t able to join us, check out our article below that touches on one of the workshop topics.
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