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.
Huge Volume, Tiny Margins in the Chinese Beer Market
September 15, 2015 by Leave a Comment