Beer brand competition is heating up

Tsingtao Brewery disclosed the first quarterly report of 2014. During the reporting period, the company achieved operating income of 7.408 billion yuan, an increase of 17.36% year-on-year; net profit attributable to shareholders of listed companies was 586 million yuan, an increase of 20.02% year-on-year.

The data shows that in the report period, Tsingtao Brewery actively expanded its market and achieved continuous growth in sales, revenue, and profits. The total beer sales volume reached 2.18 million liters, a year-on-year increase of 19.3%. Among them, the main brand “Qingdao Beer” achieved sales of 1.17 million kiloliters, an increase of 11.7% year-on-year.

In this regard, Qilu Securities said in its research report that the competition in the beer industry is escalating from the mid-to-low-end share scramble to the mid-to-high-end profit competition, and the focus of competition has gradually shifted from the channel competition to the competition of the brand and the satisfaction of consumers. The Chinese beer market, the competition between Anheuser-Busch InBev, Snowflake, and Tsingtao’s top three have evolved into a brand battle. Judging from the tracking situation in the first quarter of this year, Tsingtao Brewery has achieved good results in some base markets after undergoing strategic adjustment of brands and channels in the past two to three years.

According to the quarterly report of Chongqing Beer Disclosed, during the reporting period, the company realized operating income of 665 million yuan, a year-on-year decrease of 4.97%; net profit attributable to shareholders of listed companies was 25,932,200 yuan, a year-on-year decrease of 35.46%.

Yanjing Beer achieved operating income of RMB 3.018 billion in the first quarter, an increase of 5.22% year-on-year; net profit was RMB 50.4192 million, a year-on-year increase of 10.83%.