Heineken how hit the Chinese beer market

In China, Western consumer brands have long been reconciled in the prospect of lower growth in the world’s second largest economy. However, the demand for Heineken’s patients tells a different story.

In 2023, the various brands of the Dutch Lager producer, including the volume of sales for Amstel increased by more than 50 percent. Last year, due to the converts of the general mainland Chinese beer market, the volume increased by 20 percent to about 700 million liters – almost increased to everyone in the country enough to serve everyone.

HeinekenFollowing a deal with Chinese resources agreed in 2018, after agreed with Chinese resources, heineken, while buying a share of the Chinese resources and the share of the agreement, Best Bewer in China.

The approach points to the features of opportunity for famous foreign names in China’s rapidly developing consumer sector, if they are in the broader markets.

“This is a very healthy operation relationship,” said Tristan Van Thrien, Director of Global Investor Relations in the Heineken of relations with the Christian Resources Beer. “We need them and we need them.”

Heineken’s growth rates are “undoubtedly superior,” said Bernstein an analytical Euan Mcleish. “None of the other reward brands did not talk about double digits.”

China’s total beer market is decreasing. As a result of concerns about sales consumer confidence, about 4-5 percent decreased last year.

However, for Chinese resources, sales in 2024 decreased by 2.5 percent, heineken is an option.

Honeken-related bargaining, in one of the hosting companies in the Dutch beer for 20 years, about 21 percent of Heinken in China’s resources began in exchange for an effective interest.

Lager, who was previously sold in two southern provinces, spread across the country. The increase in the growth, RMB40 (5.5) was the sponsorship of the events such as Shanghai Formula 1 Grand Prix, which is on the sale of 500ml portion.

In China, Heineken’s 500ml’s service is an average of an average of $ 18.67-2.08 per average.)

Heineken grew by “Chinese resources beer’s distribution network”, Ceky Tsang, Analytics at Morningstar.

The local snow guard uses Chinese resources to use the beer, Heinken, the most seller in the country ChinesePremium market – is often defined as a beer that costs at least 20 percent of the average.

“The total volume of beer in China is a gradual decline in the tendency,” said Tsang, ie China’s reserves “go after price increase in earnings growth”.

Heineken’s growth, along a low base, along with other Western brands, usually placed themselves as award options in China.

Denmark Brewer Carlsberg, which is about 10 percent of China beer’s market, said that sales are 1 percent in the last year. Jacob Aarup-AndersenThe CEO said that the market was a “structural decrease” for 15 years, but still had “extensive growth opportunities.”

Anheuser-BuschUnlike Heineken, unlike Heineken, the Budweiser, who created an important distribution network in China, also said that sales are reduced.

The competition between the two “Many investors are treated as a famous man’s death in the mind,” said Mcleish, referring to the developing award market.

Now the 500ml prize guard for Central China for Central China, Bernstein takes about 37 minutes relatively 37 minutes – an hour before a good hour – the invasion is close to global definition.

“We are thinking in 20 years and this is the period of premium development in China,” said Van Strien, who said, “Reward beer is working to work really well.”

“You don’t talk about a great capital expenditure for a wonderful evening to spend a wonderful evening.”

For Mcleish, the strategy of China resource is a risk of “brand accommodation” if the strategy, rapid expansion, price and its reward status.

Chinese resources beer “I don’t have experience resources really experience” but if they get their time …. growth rates would never be soon, “he said.

In the corner of Chinese resources, the director of investor relations Kevin Leung said there were some promotions, but the significant price decrease in any Heineken product. “

There are other risks. Heineken’s Chinese Resources Beer exposed to the fall of the patrons, 874 million euros were charged last year, even increased its volume.

The Dutch company does not disclose its dividends and royalty income from the agreement, but the share of income from the Chinese resource is about 6-7 percent on the global scale of China.

Van Strien, in the first quarter of this year, the volume of volume of the volume of the volume of amounts increased by 20 percent of the volume and the amount of Amstel.

The agreement with Chinese resources was the “planned end point”, said Van Strien. “Reality is often a good thing for us to have local property,” he said.