Huge Volume, Tiny Margins in the Chinese Beer Market

The Wall Street Journal is reporting on the vexing beer market in China: five large conglomerates, including SABMiller and A-B InBev, all fighting for a share of a full 25% of global beer volume. Yet this intense competition is shrinking their margins. Thus China accounts for only 10% of global beer revenues and just 3% of all profits. To make matters worse for Chinese brewers, beer consumption is flatlining, thanks to an aging population and more affordable rival beverages, like China’s sorghum spirit, baijiu.

[H/T Wall Street Journal]


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