On March 22, 2021, China Resources Snow Breweries released its 2020 performance report. The report showed that in 2020, the company's revenue was RMB 31.448 billion, a slight decrease of 5.2% year-on-year, mainly due to the impact of the pandemic. However, in terms of profit, the company's profit attributable to shareholders and earnings before interest and taxes increased by 59.6% and 42.3% respectively compared to 2019. In response, Hou Xiaohai, CEO of China Resources Beer, stated at the media conference held that day: "Domestic pandemic prevention and control has basically been brought under control. We expect the beer market consumption to return to normal levels in 2021. China Resources Snow Breweries is full of anticipation and expectation for the upcoming summer peak season in 2021, and we are confident of achieving further growth this year." Reviewing the 2020 performance, Mr. Hou believes that the company has achieved significant results in both performance growth and internal business changes. **-01-**How did Snow stabilize its fundamentals in the face of the 2020 pandemic? Despite the severe impact of the pandemic on the entire industry, China Resources Snow Breweries delivered a satisfactory performance report. The reason, according to CEO Hou Xiaohai, is that the company had some key strategic deployments during the pandemic, which were crucial factors in stabilizing performance and achieving substantial profit growth. Despite the pandemic's impact, China Resources Snow Breweries confirmed the overall tone of active expansion throughout the year from top to bottom, avoiding team weakness. After the pandemic was brought under control to a certain extent, all employees were able to return to frontline market execution at the first opportunity, which played a significant role in supporting distributors, expanding terminals, and enhancing product coverage and sell-through. Specifically, during the pandemic, China Resources Snow Breweries promoted the establishment of a key account management model, providing more attention and empowerment to channel partners nationwide. This further strengthened the capabilities of the channel customer team and expanded its numbers. On the other hand, while some competitors reduced market expenses and brand promotion, China Resources Snow Breweries continued to invest heavily in market and advertising expenses for high-end products such as Mars Green, Brave the World SuperX, Craftsmanship, and Heineken, further enhancing brand awareness among consumers. Mr. Hou stated that through targeted operations during the pandemic, both Brave the World SuperX and Heineken achieved breakthrough growth in 2020, laying the foundation for the growth of key high-end products in 2021. Although the performance report shows that China Resources Snow Breweries experienced a 5% and 3% pandemic-related fluctuation in revenue and overall beer sales volume, this does not affect the stability of the overall fundamentals. Judging from the double increase in profits and the 11% growth in sales of premium and above beers, the company's "Decisive Battle for High-End" strategy has achieved initial results in 2020. **-02-**Empowering Distributors to Grow Stronger, Achieving Win-Win Cooperation Another particularly noteworthy point is that in 2020, Snow Beer underwent a major change and turning point in its channel strategy. Hou Xiaohai, CEO of China Resources Beer, told New Distribution reporters: "For a long period of time, Snow Beer's channel model was deep distribution and regional division. In 2020, Snow Beer proposed and implemented an important channel strategy shift: transforming to a key account channel management model." Snow Beer's key account management model is mainly reflected in two aspects. On the one hand, Snow's current customers are developing to become larger and stronger to adapt to the future needs of Snow's high-end development. On the other hand, Snow will use the key account model more in the brand building of high-end products, including introducing external large customers with strength and resources. 2020 is the first year of Snow Beer's "Decisive Battle for High-End". One of the most important driving forces to achieve this strategic goal is the upgrade of the channel customer management model. Mr. Hou believes that Snow Beer's channel partners must possess the management capability for high-end commanding heights and channel expansion. In this context, China Resources Snow Breweries is committed to developing higher-quality distributors, formulating a long-term key account management model plan, empowering customer development, enhancing customer competitiveness, and helping them grow. Specifically, empowerment is provided in terms of distributor internal management, including employee recruitment, assessment, standardization of business operations, configuration of vehicles and warehousing and transportation systems, as well as financial support. **-03-**While "Fighting for High-End", Exploring Diversified Category Development 2020 is the first year and a critical year for the second three-year strategic plan "Fighting for High-End" in China Resources Snow Breweries' "3+3+3" strategic plan. During the three-year strategy implementation from 2020 to 2022, the product portfolio of "4+4" (Brave the World SuperX, Mars Green, Face Painting, Craftsmanship) and international brands (Heineken, Sol, Red Stripe, Tiger), combined with channel empowerment for distributors, will jointly realize the implementation of the three-year "Fighting for High-End" strategy. In addition to the strategic layout of beer products, China Resources Snow is also exploring and attempting a diversified product layout. CEO Hou Xiaohai believes that a diversified layout will provide important support and synergy for terminal management and services, the increase of distributors' profit models, the selection of business categories, and the full utilization of Snow's business team's capabilities. Mr. Hou stated, "Snow Beer's advantages in marketing management can be further leveraged. Snow currently has more than 14,000 channel partners and over 4 million retail terminals, which can continue to empower other businesses. In the 14th Five-Year Plan of China Resources Snow Breweries, Snow has begun to explore, focus on, and selectively enter limited diversified categories and industries, to fully revitalize Snow Beer's management, brand, and channel network capabilities, while also empowering Snow Beer's channel network." However, when mentioning the highly anticipated new product "Xiao Pi Qi", Mr. Hou also clearly stated: "China Resources Snow Breweries is very optimistic about the Chinese-style fruit beer market, but has no intention to compete in the carbonated beverage market. 'Xiao Pi Qi' is a Chinese-style fruit beer, which he calls 'beer-like fruit-flavored water' . It is a product supplement for young people in alcohol consumption scenarios. It is still too early to talk about the strategic goals of this product. In the future, China Resources Snow Breweries will also explore other diversified products, such as baijiu, prepared wines, soda wines, low-alcohol products, and fruit-flavored beverages, under the premise of meeting consumption upgrades and the diverse needs of consumers in the Internet era. Looking back at China Resources Snow Breweries' 2020, whether it was the response to the pandemic, the structural transformation of product premiumization, or the reform and empowerment of channels, these important measures will be recorded in the annals of Snow Beer's history, and will also lay a solid foundation for the company's development in 2021. Tips will be paid 400-2000 yuan once adopted.