Budweiser to launch more premium beer for growth

by asiafoodbeverages
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Asia’s largest beer company, Budweiser Brewing Co APAC Limited (Budweiser) is planning to promote more high-end beer in China, after it saw strong demand for its limited edition Rmb 1,500 (US$237) beer gift sets.

Budweiser, part of giant brewery Anheuser-Busch InBev, has a portfolio of more than 50 beer brands including Hoegaarden, Stella Artois, Corona and Harbin, which currently holds more than 45% share of China’s premium and super premium beer market.

According to analysts, Chinese consumers are drinking less but better quality beer. On average, a standard beer costs around Rmb 5-10 (US$0.80-US$1.57) in China. Premium beer is sold around Rmb 10-13 (US$1.57-US$2.05) while super premium is marketed at higher prices.

China is far behind other developed countries in terms of consumption of premium beer with the category contributing only 16% to China’s total beer market as compared to South Korea (25%) and European countries (40-45%). As such, there is huge potential for growth in this segment, said Jan Craps, Co-Chair and Chief Executive of Budweiser APAC. With rising disposable incomes in the cities, the future growth potential in China is indeed enormous.

Earlier on, Budweiser sold all 2,400 bottles of the limited edition beer gift sets within the day of its launch, and this is a testament of the potential of this premium category. Other major beer brands like Tsingtao Brewery and China Resources Beer have also launched super high-end beer products costing more than Rmb 1,000 (US$157.50).

The premium and super premium beer category is the star performer in China’s beer market, and will lead future growth in this industry.

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