China’s second-biggest beer maker, Tsingtao Brewery, posted a 43% surge in net profit to a record RMB 3.1 billion ($486 million) in 2021, mainly due to growth in its premium segment, reports Nikkei Asia. Earnings released Tuesday show a 9% rise in sales to RMB 30.1 billion. Sales of mid- and high-end Tsingtao beers grew 14% by volume as the company launched a variety of beverages with different production methods and flavor profiles. The brewer has continued this strategy in 2022 with the debut of its “Century Legend” drink.
“The company has maintained its competitive advantages in mid- to high-end markets,” the earnings report said. Domestic market leader China Resources Beer (Holdings), known for its Snow brand, also booked its highest annual sales and net profit since the company began reporting results in yuan terms in 2016.
But the recent wave of coronavirus cases in China has clouded this year’s outlook for what is by far the world’s largest beer market. Shanghai, a major consumption center, has entered a staggered lockdown, while bars and restaurants elsewhere in the country have closed.
You must log in to post a comment.