Huaxia Liquor News reporter Bian Chuanze
Industry insiders said that looking at the semi-annual reports of beer listed companies in the first half of 2021, many beer companies have hit a new high in recent years in terms of revenue, net profit and sales, indicating that beer companies have gradually recovered from the impact of the epidemic on beer consumption and achieved breakthrough growth. So, has the high-end era dominated by Chinese beer brands arrived?
Recently, China Resources Beer, Tsingtao Beer, Yanjing Beer, Chongqing Beer, Budweiser Asia Pacific and other beer companies have released the first half of the report card, in addition to the decline in the net profit of Chongqing Beer, most of the companies have achieved a new high in revenue and net profit. In the context of the impact of the epidemic and the consolidation of the industry, the beer market has "drifted red" against the trend.
<h1 class="pgc-h-arrow-right" data-track="36" > "Mid-year Answers" have high satisfaction</h1>
According to the semi-annual report of Tsingtao Beer, during the reporting period, the company achieved a total of 4.769 million kiloliters of product sales, an increase of 8.2% year-on-year; achieved operating income of 18.29 billion yuan, an increase of 16.66% year-on-year; and achieved a net profit attributable to shareholders of listed companies of 2.416 billion yuan, an increase of 30.22% year-on-year.
According to the performance report of Yanjing Beer, in the first half of 2021, Yanjing Beer achieved product sales of 2.1316 million kiloliters, an increase of 1.65% year-on-year; achieved operating income of 6.317 billion yuan, an increase of 13.51% year-on-year; realized total profit of 462 million yuan, an increase of 13.38%; net profit attributable to shareholders of listed companies was 288 million yuan, an increase of 7.12% year-on-year.
"From January to June 2021, the company achieved a comprehensive turnover of 19.634 billion yuan, an increase of 12.8% year-on-year; and a net profit of shareholders of 4.291 billion yuan, an increase of 106.4% year-on-year." Hou Xiaohai, CEO of China Resources Beer, said at the company's performance briefing a few days ago.
In the first half of the year, Chongqing Beer achieved operating income of 7.139 billion yuan, an increase of 27.51% year-on-year; net profit was 622 million yuan, down 3.35% year-on-year.
In the first half of the year, Pearl River Beer achieved operating income of 2.218 billion yuan, an increase of 10.51% year-on-year; net profit was 311 million yuan, an increase of 26.3% year-on-year.
In the face of such data, BOCI analysis believes that the rapid growth of the beer industry is due to the optimization of production capacity and the upgrading of product structure, and the firm high-quality development strategy is in line with the market's demand for high-end products.
With the improvement of people's living standards, the demand for quality of life is also getting higher and higher. Beer consumption is no exception, and the nearest channel provider to the consumer has the most say.
Liu Shiying, general manager of Xi'an Mu'en Liquor Warehouse Trading Co., Ltd., told the "Huaxia Liquor News" reporter that nowadays, consumers have higher and higher requirements for the taste of beer, even if the average income of the family, consumption is also increasing year by year, traditional low-grade products have long been out of the consumption list. Therefore, their company no longer represents products with a retail price of less than 8 yuan 3 years ago, and the current agent products in addition to green beer, Musi series of high-end products, craft beer produced in Shandong, Beijing and other places are also the focus of their efforts in recent years.
Xu Liqiang, a Shandong consumer known as the local "beer king", mainly consumes two kinds of beer, Qingdao 1903 and August, in his view, the price and quality of beer are closely related, compared with products below 5 yuan, high-end products wheat aroma, wine aroma is more intense, more comfortable.
Liu Hao, head of Nanjing LongfengYuan Hotel, told reporters that there is no beer less than 8 yuan a bottle in their hotel, and the best sales are 8 to 15 yuan of beer products. He said that consumers will repeat consumption after recognizing the taste of a certain product, and the price is basically not taken into account.
Therefore, whether from the perspective of product profits or to meet consumer needs, medium and high-end beer has become the mainstream.
<h1 class="pgc-h-arrow-right" data-track="35" > high-end products continue to exert force</h1>
In the face of market demand, the mainstream liquor companies have long laid out high-end products, optimized the product structure, and the market has given a positive response, which can be seen from the semi-annual reports released by several listed companies.
Guided by the upgrading of product structure, Tsingtao Beer focuses on the main products, and takes the lead in innovating and developing a series of art brewing products such as Tsingtao Beer "Centennial Journey, Amber Lager" with unique flavors, and the sales volume of Tsingtao Beer's high-end products has increased by 41.4% year-on-year.
From Yanjing fresh beer and original pulp white beer to the current Yanjing U8 and Yanjing V10, Yanjing Beer provides a series of high-end products that progress together with the mainstream consumption level of the country. From January to June 2021, Yanjing Beer's high-end products achieved operating income of 3.710 billion yuan, an increase of 29.88% year-on-year, accounting for 61.70% of total revenue.
In terms of Chongqing beer, the sales of high-end beer (more than 10 yuan) in Chongqing accounted for 24%, higher than the industry average of 19%. In the first half of this year, the company's high-end beer achieved revenue of 2.442 billion yuan, an increase of 62.29% year-on-year, and the high-end growth of Chongqing beer was mainly driven by wusu and 1664 brands. Among them, The market outside Xinjiang has grown by nearly 89%, and the 1664 market has increased by more than 50%.
In the first half of this year, Pearl River Beer completed the cumulative sales of beer of 623,400 tons, an increase of 10.25% over the same period last year. Among them, the sales volume of high-end products accounted for 90%, and the sales of high-end beer increased by 23.01% year-on-year; the high-end products launched in 2019 were 97 pure raw, and the sales volume increased by 121.03% year-on-year.
"At present, the company's share of the high-end beer market is more than 23%, and the high-end does not need to look too much at the opponent." Hou Xiaohai said that the current high-end brand of China Resources Snowflake Beer presents a scene of "a hundred flowers blooming". Chinese brands and international brands have a good growth trend, and the brand image is gradually being established, including "China Tide" Mars Green, "China Cool" Brave to the End of the World SuperX, "China Pure" Snowflake Pure Life, "Taste of China" Ingenuity Creation, "China Shape" Facebook series (Flower Face, Danjiao) and so on.
In the view of Zhu Danpeng, an analyst in china's food industry, high-end has become the development trend of beer in China as a whole, and has become a demand for beer consumption.
Chen Jiangan, a senior beer technical consultant, said in an interview with the "Huaxia Liquor News" reporter that the market has the consumption potential of high-end beer, and this high-end concept is more abstract, but we may as well start from the direction of "high-end" that everyone often says. To paraphrase that sentence, "the contradiction of the beer market now is the contradiction between the backward beer quality and the gradual improvement of consumers' awareness of high-end beer and the shortage of high-end beer supply", so the mainstream of beer development in the future is the development of high-end beer and craft beer.
Chen Jiangan also pointed out that high-end beer is not only whole malt, good hops, more hops, or the selection of the right yeast and other conventional recipes and process concepts, high-end beer production will also have higher requirements for equipment, hygiene, dissolved oxygen control or oxidation of the whole brewing process control, yeast precision management, etc., the age of wine, the age of the second-hair beer needs to be repositioned. High-end beer is a return to the spirit of craftsmanship.
"The mission of the 'Eighteenth National Congress' report to the beer industry is to develop high-end beer and meet the continuous growth of people's demand for high-quality life." Beer is also developing across borders, developing in the direction of high alcohol, juice drinking, soda wine, and fruit wine flavoring. Chen Jiangan told reporters.
<h1 class="pgc-h-arrow-right" data-track="38" > the future development is stable and good</h1>
"From a medium- and long-term perspective, China's beer industry is still in the dividend period of rapid upgrading of low-grade wine to medium-to-high-end wine, superimposed on domestic beer enterprises to accelerate the process of capacity optimization, operational efficiency improvement to promote profitability recovery, into the stage of accelerated profit improvement." The beer market pattern is stable, and the proportion of high-end products under the reduction game is the consensus of the industry. In the process of upgrading from ordinary products to high-end products, operating leverage drives the growth rate of profits higher than the growth rate of revenue. The secretary general of the Beer Branch of the China Liquor Industry Association said in January.
According to the National Bureau of Statistics, China's beer production in the first half of 2021 was 18.891 million kiloliters, an increase of 10.3% year-on-year, but still less than the same period in 2019. In terms of revenue and profit, the total revenue of A-share beer listed companies in the first half of the year increased by 35.2% year-on-year, and the total net profit attributable to the mother increased by 41.3% year-on-year.
BoC International analysis, in the short term, the repeated epidemic and the upward pressure on costs still exist; in the long run, the overall production and sales growth of Chinese beer is under pressure, and the domestic beer industry has developed into a pattern of stock competition, and the implementation of high-end strategies and the improvement of product structure will be an important growth logic for beer manufacturers.
"The beer market has entered the development stage of attaching equal importance to basic demands and quality appeals, and then superimposing taste appeals." He Yong, secretary general of the China Liquor Industry Association and chairman of the beer branch, said.
Industry insiders said that looking at the semi-annual reports of beer listed companies in the first half of 2021, many companies have hit a new high in recent years in terms of revenue, net profit and beer sales, indicating that beer companies have gradually recovered from the impact of the epidemic on beer consumption and achieved breakthrough growth.
Beer marketing expert Fang Gang also expressed the same view. He pointed out that the high-end process of beer companies will continue in the second half of the year. And, for a long time to come, high-end will be the main theme of the entire industry. At present, the high-end space of the beer industry is still very large, and the high-end of beer will become a normalized action.