---
title: "Beer Giant Brought to Its Knees by Chinese Rivals"
description: "Global beer giant AB InBev is facing a tough period in China, with declining sales, layoffs, and a change in leadership. Its Hong Kong-listed unit, Budweiser APAC, saw revenue and profit drop in 2024, and it has appointed its first Chinese CEO to reverse the trend."
author: "财经天下"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2025-04-17"
language: "en"
canonical: "https://xinjignxiao.com/en/articles/beer-giant-brought-to-its-knees-by-chinese-rivals-e8976684/"
markdown: "https://xinjignxiao.com/en/articles/beer-giant-brought-to-its-knees-by-chinese-rivals-e8976684.md"
original_source: "https://mp.weixin.qq.com/s/8CUSP-y2v779h594PPGNzA"
translation: "https://xinjignxiao.com/zh/articles/%E5%95%A4%E9%85%92%E5%B7%A8%E6%97%A0%E9%9C%B8-%E8%A2%AB%E4%B8%AD%E5%9B%BD%E5%90%8C%E8%A1%8C%E6%89%93%E6%9C%8D%E4%BA%86-e8976684.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/beer-giant-brought-to-its-knees-by-chinese-rivals-e8976684/"
usage_policy: "https://xinjignxiao.com/ai-policy.txt"
---

# Beer Giant Brought to Its Knees by Chinese Rivals

> Global beer giant AB InBev is facing a tough period in China, with declining sales, layoffs, and a change in leadership. Its Hong Kong-listed unit, Budweiser APAC, saw revenue and profit drop in 2024, and it has appointed its first Chinese CEO to reverse the trend.

**Source** | Business World Weekly
### **Employee Numbers Are Declining**
### With a change in leadership, rumors of layoffs, and a sharp drop in performance, the global beer giant AB InBev has entered a difficult period in the Chinese market.
Recently, media reports claimed that Budweiser APAC, AB InBev's Hong Kong-listed unit, would lay off thousands of employees in 2025. This was said to be part of the company's plan to cut operating costs by about 15% this year. In response to the rumor, Budweiser APAC relayed the headquarters' response, stating that the reports of cutting thousands of positions in 2025 were untrue. After reviewing Budweiser APAC's financial reports over the years, I found that the number of employees at Budweiser APAC has indeed been declining overall in recent years. At the end of 2021, Budweiser APAC had approximately 26,000 employees; by the end of 2023, that number had dropped to about 25,000, a reduction of over 1,000 employees in just two years. By mid-2024, the number had decreased by a few hundred more to 24,400. Among them, the number of employees in China fell from 21,200 at the end of 2023 to 20,700 by mid-2024. At the end of 2021, the number of employees in China was about 22,400, a decrease of 1,700 over more than two years. The reduction in Budweiser APAC's workforce is closely related to cost reduction and efficiency enhancement. In recent years, Budweiser APAC's situation has not been optimistic. Its main markets include China, South Korea, India, and Vietnam, with China being the core contributor to its performance. In 2024, although Budweiser APAC achieved growth in other markets, it struggled to sell in China. According to its financial report, Budweiser APAC's revenue in 2024 was $6.246 billion, a year-on-year decrease of about 9%; net profit was $726 million, down 14.8%; and beer sales volume fell by 8.8% for the full year. Budweiser APAC stated that in 2024, its business in India maintained growth, with net revenue from premium and super-premium products growing nearly 20%; in South Korea, driven by the growth of Cass, its total market share expanded further, reaching its highest level in at least 10 years. However, growth in other markets was offset by the decline in China. In the fourth quarter of 2024, Budweiser APAC's sales volume in China fell by 18.9%, and revenue dropped by 20.1%; for the full year of 2024, sales volume in China decreased by 11.8%, total market share fell by 1.5 percentage points, and revenue and revenue per hectoliter declined by 13.0% and 1.4%, respectively. "2024 was a mixed year," said Yang Ke (Jan Craps), CEO and Co-Chairman of Budweiser APAC. After delivering a poor performance in China, Budweiser APAC decided to replace its leader. The successor to Yang Ke as CEO and Co-Chairman is Cheng Yanjun, who has worked at Budweiser APAC for 29 years and previously served as Global Chief Supply Chain Operations Officer. The appointment takes effect on April 1, 2025. Yang Ke, a Belgian national, has served as CEO and Co-Chairman of Budweiser APAC for seven years and has been with AB InBev, the parent company, for 23 years. The announcement stated that he will seek other development opportunities. The successor, Cheng Yanjun, will become the first Chinese leader of Budweiser APAC. Cheng has extensive industry experience. According to information on the Qilu University of Technology website, Cheng graduated from Shandong Institute of Light Industry (now Qilu University of Technology), joined Tsingtao Brewery in 1982, and was promoted to deputy factory director in 1985. He later served as vice chairman, deputy general manager, and chief engineer of Tsingtao Brewery Company. In 1996, Cheng joined Budweiser as Chief Brewer for Budweiser China, responsible for production and management; in 2005, he was appointed CEO of Harbin Brewery Group; and in 2009, he became Vice President of Supply Chain and Logistics for Budweiser APAC. Budweiser APAC stated: "As a brewer with 29 years of experience in the company, Cheng Yanjun is well-suited to lead Budweiser APAC." In the Chinese market, Budweiser APAC's primary task now is to return to growth. At this time, bringing in a leader with rich local experience in China makes Budweiser APAC's intentions clear. "I look forward to combining my brewer's knowledge with management capabilities to drive value creation and lead Budweiser APAC into the next chapter of growth," Cheng said.
### A Beer Giant Built on Acquisitions
### Budweiser APAC attributes its performance decline to weak consumption. However, this is only one reason. Some industry insiders suggest that it may also be related to its indigestion after a series of acquisitions, as competition in the Chinese market intensifies.
Whether in the Chinese market or globally, AB InBev can be described as an "acquisition maniac." In 2008, Belgian beer giant InBev acquired A-B, the American beer giant and parent of Budweiser, for $52 billion, setting a record for the largest acquisition in the beer industry at the time. The combined entity, AB InBev, became the world's largest beer company. Subsequently, in 2016, AB InBev acquired its competitor, SABMiller, the world's second-largest beer company, for over $100 billion, becoming an industry behemoth and further consolidating its market position. During this period, in 2013, AB InBev also brought the famous Mexican beer brand Corona under its umbrella. The business world is not about fighting and killing, but about using invisible capital power to attract and pull you into its ranks. AB InBev's strength is inseparable from capital operations. AB InBev is not only a beer maker but also a capital "veteran." The vast Chinese beer market has long made international beer giants salivate. From 1992 to 1998 alone, dozens of foreign beer brands entered the Chinese market. As a capital veteran skilled in "enclosing land," AB InBev naturally could not be absent. As early as 1995, the predecessor of AB InBev tested the Chinese market but got off to a bad start. With China's accession to the WTO, mergers and acquisitions in the Chinese beer market occurred frequently. At that time, InBev and Budweiser were still competitors vying for a share of the Chinese beer market. In 2004, Budweiser's parent company finally opened up the Chinese market by acquiring the old Chinese brewery, Harbin Brewery. In 2006, InBev acquired Xuejin Brewery for over 5.8 billion yuan, setting a record for the largest foreign acquisition in the Chinese beer market at the time. The previous record was the Harbin Brewery acquisition. Through continuous acquisitions, AB InBev has acquired several strong regional beer brands in China, including Harbin, KK, Jinling, Jinlongquan, Baisha, Xuejin, Jinshibai, Dafuhao, and Nanchang. In addition, it has taken stakes in Tsingtao Brewery and acquired part of the equity of Zhujiang Brewery. To this day, AB InBev remains the second-largest shareholder of Zhujiang Brewery. While acquiring, AB InBev has also been actively building factories. In 2017, its largest brewery in the Asia-Pacific region was completed in Putian, Fujian, mainly producing brands such as Budweiser and Xuejin. In 2019, AB InBev spun off Budweiser APAC and listed it on the Hong Kong Stock Exchange. Since then, the top three giants in the Chinese beer market—China Resources Beer, Tsingtao Brewery, and Budweiser APAC—have all been listed in Hong Kong. Driven by capital, Budweiser APAC has become the third-largest player in the Chinese beer market by sales volume, and in the premium segment, it has a clear advantage, with a market share far ahead of competitors. At the time of its listing, Budweiser APAC ranked first in beer sales in China; in the premium and super-premium segments, it was the industry leader. Budweiser APAC is the largest beer company in the Asia-Pacific region. According to its official website, Budweiser APAC brews, imports, promotes, distributes, and sells a portfolio of over 50 beer brands, including Budweiser, Corona, Hoegaarden, Cass, Harbin, Blue Girl, and Xuejin. However, after years of rapid expansion, changes have occurred both inside and outside the beer industry, and Budweiser APAC is experiencing some indigestion. In fact, since its listing, Budweiser APAC's performance has been unstable, fluctuating up and down. Its 2024 revenue and net profit were lower than in the year of its listing—five years ago. As a foreign giant, the premium market has always been a point of pride for Budweiser APAC. However, in recent years, both large and small domestic giants have been moving toward premiumization. In a market with stock competition, Budweiser APAC's premium advantage has been gradually diluted. It can be said that the predicament Budweiser APAC currently faces in the Chinese market is complex. Can the new leader Cheng Yanjun, who will take office on April 1, lead Budweiser APAC to reverse the decline and return to growth?
### Premium Advantage Under Attack
### In the past, in China's premium and above beer market, AB InBev, which had laid out its strategy early, was dominant, with a market share far exceeding that of other beer giants. Although China Resources Beer has long been the number one in overall beer sales, in the premium and above market, its market share ranks third, behind AB InBev and Tsingtao Brewery.
It can be said that as a foreign giant, Budweiser APAC has always been strong in China's premium beer market. This is also its advantage. Before 2014, China's beer industry experienced stages of technology introduction, one city one beer, and land grabbing. After a period of rough growth, beer production reached its peak in 2013 and then hit a turning point in 2014, with competition shifting from quantity to quality. Budweiser APAC has been enjoying the dividends of the premiumization period in the Chinese beer market. However, when everyone started to move toward premiumization, its premium advantage was impacted. Founder Securities analysis suggests that from 2014 to 2017, the beer industry went through an adjustment period. In the early stage, breweries continued to compete extensively under inertia, sacrificing profits to grab market share through low-price competition. In the later stage, breweries gradually realized the importance of high-quality development and successively initiated premiumization reforms, leading to a turning point in profitability. At the end of 2017, with the competitive landscape stabilizing and external cost pressures, the industry collectively raised prices, reaching a consensus on premiumization and high-quality development. Since 2018, the beer industry has fully entered a new stage of premiumization, with all breweries adopting the "three axes" of cost reduction and efficiency enhancement—premiumization for efficiency, closing inefficient factories to reduce costs, and layoffs plus incentive optimization—leading to continuous improvement in gross margins and profitability. Since then, the industry has fully entered a new stage of premiumization, and price wars in the beer industry have eased. In addition, listed companies have actively focused on premium products and reduced low-end products, accelerating the industry's structural upgrade. As the number one in domestic sales, China Resources Beer's acquisition of Heineken's China business was a significant move on its premiumization path. In April 2019, China Resources Beer completed the acquisition and integration of Heineken China, obtaining a trump card in its premiumization process. With the Heineken premium card, China Resources Beer's premiumization accelerated. In 2023, as the strongest driver of China Resources Beer's premiumization, Heineken brand sales grew nearly 60% year-on-year. In 2024, although China Resources Beer's performance also declined, sales of premium and above beer grew by over 9%, with Heineken still achieving nearly 20% growth despite a high base from the previous year, and sales of Old Snow and Red爵 roughly doubled. Similarly, as a domestic beer giant, Tsingtao Brewery has, in recent years, through continuous premiumization, established a significant position in domestic premium beer. Of course, there are also Yanjing Beer, Zhujiang Brewery, and other domestic giants of various sizes also moving toward premiumization. In addition, after completing a major asset restructuring with Carlsberg in 2020, Chongqing Brewery formed a combination of "local strong brands + international premium brands," operating international brands such as Carlsberg, Tuborg, 1664, Grimbergen, and Brooklyn, as well as local strong brands like Chongqing, Shancheng, Wusu, Xixia, Dali, Feng Huaxue Yue, and Tianmuhu. At the same time, the beer consumption market has also changed. Beer industry expert Fang Gang analyzed to me that the consumption and channels in the Chinese beer market have changed significantly: consumer demand and purchasing channels are more diversified and personalized; the share of on-premise channels is declining, while off-premise channels are growing; and new business formats are emerging, replacing some beer consumption. "The key is that the market has changed. Budweiser APAC's traditional advantageous channels are in nightclubs, KA, and large restaurants, but these channels have all declined," Fang Gang said. In off-premise channels, Budweiser's performance in recent years has not been good. Budweiser APAC stated that in the Chinese market, starting from 2025, it will focus on clearly investing in Budweiser and Harbin Beer, reconnecting with consumers, and driving market share growth. Competition in the Chinese beer market has long been white-hot. In Fang Gang's view, it will not be easy for the new leader to lead Budweiser APAC back to growth. However, Budweiser APAC also stated: "We view India as the next growth driver."


---

## Copyright and AI use

This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL.

Contact: zhaobo258@gmail.com · +86 158 5481 7671